RERA Tightens Rules on Maintenance Security Funds
The Real Estate Regulatory Authority (RERA) has introduced stricter guidelines to improve transparency in how builders manage apartment maintenance security funds. Under the new framework, developers will be required to keep these funds in a separate bank account instead of using them for other purposes. The move is expected to strengthen RERA rules, homebuyer protection, and real estate transparency across residential projects.
Separate Account to Ensure Fund Safety
According to the updated guidelines, builders must deposit maintenance security charges into a dedicated account that remains separate from project finances. This step is designed to prevent misuse of funds and ensure that the money collected from flat owners is used only for maintenance-related purposes. The reform promotes maintenance security fund, real estate compliance, and apartment management best practices.
RWA to Receive Funds With Interest
Once the Residents’ Welfare Association (RWA) is formed, developers will have to transfer the entire maintenance security amount along with the interest earned on it. This will provide RWAs with the financial resources needed to manage common facilities effectively while giving homebuyers greater confidence in housing society management, RWA rights, and property ownership.
Major Relief for Homebuyers
The revised regulations are expected to improve accountability in the real estate sector and reduce disputes between builders and residents. By ensuring proper handling of maintenance deposits, RERA aims to create a fairer and more transparent housing ecosystem. The new policy is likely to boost real estate investment, buyer confidence, and property market trust in the long run.
