Dear Client,
In redevelopment projects, it's crucial to understand the difference between the MOFA (Maharashtra Ownership Flats Act) area and the RERA (Real Estate Regulatory Authority) area, as they can lead to confusion due to differing calculation methods. Here’s a breakdown:
Initial Offer:
600 sq ft MOFA: eligible area based on your current property.
550 sq ft MOFA: Initially offered by the developer.
575 sq ft RERA: Initially offered by the developer.
Surrender Area: 50 sq ft, for which the developer pays at the relevant rate.
Revised Offer:
600 sq ft MOFA: Now offered by the developer.
635 sq ft RERA: Now offered by the developer, including common areas.
45 sq ft balcony: Added conditionally for some floors.
Calculation:
Previous Calculation: 600 (existing) - 600 (offered) + 45 (balcony) = 45 sq ft additional purchase.
Current Calculation: 635 (offered) - 600 (existing) + 45 (balcony) = 75 sq ft additional purchase.
Key Points:
1. MOFA vs. RERA: Ensure clarity on what areas are included in the RERA area. RERA often includes common areas and balconies, which are not part of MOFA.
2. Guidelines: MOFA mandates clear disclosure of carpet area, and any reduction must be compensated. RERA requires transparent communication of the carpet area and additional spaces.
3. Balcony Condition: Ensure the conditional addition of the balcony is clearly agreed upon. If it feels forced or unfair, negotiate with the developer.
4. Legal Advice: Consult a property lawyer familiar with MOFA and RERA regulations to review the offer and ensure compliance with legal standards.
Additionally, seek advice from a property lawyer to ensure your interests are protected during negotiations.