RERA REGISTRATION

A Deviation Report is a mandatory document required by RERA (specifically MahaRERA) when a promoter’s draft "Agreement for Sale" or "Allotment Letter" differs from the prescribed state-mandated model format.

Purpose of the Deviation Report

• Transparency: It informs prospective homebuyers of any changes or additions the developer has made to the standard, regulator-approved contract.

• Compliance: RERA requires that certain "core" clauses (e.g., those related to area differences, termination, conveyance of title, or defect liability) be strictly followed. The report ensures that any deviations from the model are explicitly declared, allowing the Authority to review them for consistency with the Act.

• Registration Requirement: If a developer makes any changes to the model agreement, they must upload a deviation report alongside the draft agreement on the RERA portal. Failure to submit this report can lead to the rejection of the project registration application.

What the Report Typically Contains

The report is a formal document (often on company letterhead) that includes:

1. Reference to the Model Format: A clear statement that the promoter has prepared the agreement based on the standard Annexure-A (or the relevant state-specific format).

2. Comparative Table: A list detailing the original clause from the RERA model format versus the modified clause in the developer's version.

3. Nature of Changes: Any additions, deletions, or modifications made by the developer to the standard text. These are often highlighted in the draft agreement (e.g., in yellow) for easy reference.

4. Declaration: A formal declaration by the promoter that these changes are not contrary to or inconsistent with the RERA Act, Rules, and Regulations.

Important Considerations

• Non-Negotiable Clauses: Certain clauses are considered the "core" of the agreement. While minor, project-specific adjustments are allowed, modifications that fundamentally undermine the rights of the allottee or violate RERA provisions can be declared void ab initio (void from the beginning).

• Consequences of Non-Compliance: If a developer fails to disclose deviations or includes clauses that are illegal or oppressive, the authority may reject the registration or, in later stages, penalize the promoter (under Sections 61 and 63 of the Act, penalties can be up to 5% of the estimated project cost).

Summary: A Deviation Report is a document filed by a real estate developer during RERA project registration to declare any modifications made to the state-mandated "Model Agreement for Sale." It must contrast the original model clauses with the developer's modified version, and it is essential for ensuring regulatory compliance and protecting buyer rights.