The Maharashtra Ownership Flats Act, 1963 (MOFA), remains one of the most important laws for flat buyers, cooperative housing societies, and management committees in Maharashtra. Even after the introduction of RERA, MOFA continues to govern critical areas such as society formation, builder obligations, conveyance, possession timelines, and protection against unfair practices.
This blog explains the Act in simple language and gives flat owners and management committees a clear understanding of their rights and responsibilities.
Table of Contents
What Is the Maharashtra Ownership Flats Act, 1963 (MOFA)?
MOFA is a law created to regulate the sale, construction, management, and transfer of flats by builders/promoters in Maharashtra.
It was introduced because:
- Builders often sold flats without approvals
- Promised one thing but delivered something else
- Delayed possession indefinitely
- Sold parking illegally
- Refused to form housing societies
- Blocked conveyance (transfer of land & building to society)
MOFA protects flat buyers by imposing strict duties on builders and giving enforceable rights to homebuyers and societies
Key Provisions of the Maharashtra Ownership Flats Act 1963
1. Mandatory Registered Agreement Between Buyer and Builder
A builder cannot accept more than 20 percent of the flat price without executing a written and registered agreement.
The agreement must disclose:
- Carpet area
- Total consideration
- Payment schedule
- Approved layout plan
- List of amenities
- Date of possession
- Specifications and materials
This protects buyers from vague promises or changes made later without consent.
2. Full Disclosure of Project Information
Under MOFA, the builder must disclose:
- Land title and ownership
- Sanctioned plans from authorities
- Layout of the entire project
- Approvals and permissions
- Number of buildings/wings proposed
- Construction timeline
Buyers have the right to inspect these documents before purchasing.
3. Possession Obligations and Buyer Rights
The possession date mentioned in the agreement is legally binding. Builders must hand over possession as per the timeline.
If there is a delay, the buyer has the right to:
- Demand immediate possession
- Seek refund with interest
- File a complaint for compensation
Courts have consistently ruled in favor of buyers when builders fail to deliver possession on time.
4. Changes in Layout or Building Plans Require Buyer Consent
A builder cannot alter:
- Layout plan
- Number of floors
- Common areas
- Amenities
without written consent from existing buyers.
Unauthorized changes are considered a violation of MOFA, allowing buyers or societies to take legal action.
5. Mandatory Formation of Cooperative Housing Society
Once the required number of flats are sold, the builder must initiate the formation of a cooperative housing society, apartment association, or company.
The builder must:
- Call the first meeting
- Submit all required applications
- Provide essential documentation
- Transfer common areas to the society
If the builder delays, buyers can independently approach the Registrar to form the society.
6. Conveyance of Land and Building to Society
Conveyance refers to the legal transfer of land and building ownership from the builder to the cooperative housing society.
Why conveyance is important:
- The society gains complete ownership
- Required for major repairs
- Necessary for redevelopment
- Avoids future land disputes
- Helps in availing loans for society infrastructure
If the builder refuses to execute the conveyance, the society can file for a Deemed Conveyance under Maharashtra’s Deemed Conveyance Rules.
7. Parking Rules Under MOFA
Parking is one of the most common conflict zones in housing societies.
Court judgments and MOFA clarify:
- Open parking spaces cannot be sold
- Stilt parking is part of the common areas
- Builders cannot permanently sell parking
- Societies have the right to allot parking fairly
Many societies are unaware that permanent sale of parking is illegal.
8. Pricing Transparency and Limits on Extra Charges
MOFA prohibits:
- Hidden charges
- Inflation in cost without justification
- Charging extra for undisclosed amenities
- Excessive transfer fees
Any cost must be part of the registered agreement.
9. Penalties for Builder Non-Compliance Under MOFA
Builders face legal consequences for violations, including:
- Fines
- Compensation
- Refund with interest
- Cancellation of the agreement
- Criminal liability (up to 3 years imprisonment)
Common violations include:
- Delayed possession
- Not forming society
- Not giving conveyance
- Unauthorized changes
- Illegal parking sale
Most societies struggle to maintain the transparency and record-keeping that MOFA expects. Using a structured digital platform like ADDA helps housing societies keep clean maintenance records, store documents centrally, and maintain clarity during society formation and conveyance
Conclusion
The Maharashtra Ownership Flats Act, 1963, continues to be one of the strongest legal protections for flat buyers and housing societies in Maharashtra. Whether it is transparent pricing, project disclosures, society formation, conveyance, or protection from unfair builder practices, MOFA shapes the foundation of safe and lawful homeownership.
Understanding this Act is essential for every Management Committee, RWA, and flat buyer. With clear rights, defined builder responsibilities, and enforceable penalties, MOFA empowers societies to manage their affairs confidently and lawfully.
FAQs
1. What is the Maharashtra Ownership Flats Act, 1963 (MOFA)?
MOFA is a state law that regulates the sale, construction, possession, society formation, and conveyance of flats in Maharashtra. It protects buyers by imposing strict responsibilities on builders and ensuring transparency throughout the flat purchase process.
2. Is MOFA still applicable after RERA?
Yes. MOFA continues to apply, especially for older buildings, pending society formation, conveyance matters, and disputes not covered under RERA. Both laws function in parallel, depending on the stage and nature of the project.
3. What rights do flat buyers get under MOFA?
Buyers have the right to full project disclosure, timely possession, transparent pricing, access to sanctioned plans, and participation in society formation. They can also take legal action if the builder violates MOFA obligations.
4. What are the main obligations of a builder under MOFA?
A builder must provide approved plans, register agreements before taking more than 20 percent payment, disclose land title, offer possession on time, form a cooperative society, and execute conveyance of land and building.
5. What happens if a builder delays possession under MOFA?
If the builder fails to deliver possession by the agreed date, the buyer can demand possession, seek a refund with interest, or file a case in Consumer Court or Civil Court. MOFA recognizes delay as a violation unless justified.
6. Can a builder change the layout or add extra floors under MOFA?
No. Builders cannot change approved plans, add floors, or modify amenities without written consent from existing purchasers. Unauthorized alterations are a direct breach of MOFA.