Maharashtra May Stop Developers from Taking Full Payment Before Possession, Homebuyers Could Keep 20% Until Registration
Mumbai, August 20, 2026: Homebuyers in Maharashtra could get greater financial protection under a proposed change that may prevent developers from collecting the entire property consideration before final project completion and registration.
The Maharashtra government is considering an amendment to the Registration Act under which developers could be restricted to collecting around 75% to 80% of the property's total consideration at the Agreement for Sale stage. The remaining 20% could be payable at the time of final registration.
Why this could matter to homebuyers
For buyers purchasing under-construction properties, paying most or all of the property's value before receiving possession can increase financial exposure if construction is delayed or the project faces other hurdles.
Under the proposed framework, retaining 20% of the payment until final registration would give buyers a financial amount that remains linked to the project's completion.
Revenue Minister Chandrashekhar Bawankule said the proposal is intended to ensure that buyers are not left having paid the majority of the property cost without adequate assurance that construction will be completed.
What could change under the proposed rule
If the proposal becomes law, the payment structure could broadly work as follows:
- Developers may be allowed to collect 75% to 80% of the property value at the Agreement for Sale stage.
- Around 20% would remain payable at final registration.
- The developer would therefore not be able to collect the entire consideration before completion and final registration.
- The exact percentage, wording and implementation mechanism will depend on the amendment eventually introduced and approved.
The proposal is not yet an applicable rule and should not currently be treated as a mandatory payment cap.
What is the current RERA rule
Under Section 13(1) of the Real Estate (Regulation and Development) Act, 2016, a promoter cannot accept more than 10% of the cost of an apartment, plot or building as an advance or application fee without first entering into and registering an Agreement for Sale.
MahaRERA has also clarified that a buyer's voluntary consent does not allow a promoter to accept more than 10% without a registered Agreement for Sale.
However, the existing RERA framework does not currently prescribe a maximum overall cap on how much a developer can collect during construction, provided payments follow the registered Agreement for Sale and other applicable rules.
Why Maharashtra is considering the change
The proposed amendment is aimed at reducing the financial exposure of homebuyers during the construction period.
The government wants buyers to retain a portion of the property's consideration until the project reaches the stage of final registration. This could provide additional leverage to buyers where completion or registration is delayed.
What it could mean for developers
For developers, the proposed change could alter cash-flow planning for under-construction projects because a portion of the sale consideration would remain outstanding until final registration.
The impact would depend on the final legislation, including the exact payment limit, the projects covered and how the provision is implemented.
What homebuyers should do now
Since the proposal has not yet become a law, buyers should continue to follow the payment schedule specified in their registered Agreement for Sale and applicable RERA provisions.
Homebuyers considering an under-construction property should also check the project's RERA registration, construction progress, possession timeline, payment schedule and agreement terms before making major payments.
What happens next
The Maharashtra government is expected to work on the proposed amendment to the Registration Act. The final wording, applicability and implementation mechanism will depend on the legislation introduced and its approval by the state legislature.
Grihik Angle: If implemented, the proposal could be significant for Maharashtra homebuyers because 20% of the property price could remain in the buyer's hands until final registration, potentially reducing the financial risk of paying almost the entire amount before getting the completed home.