The Indian real estate sector’s CAGR is estimated to be 11.2% at present, and its market value is likely to cross $180 billion by 2020, and $1 trillion by 2030. Despite such rapid growth, until recently, investors faced issues relating to pricing, quality, and delivery of projects as the sector was unregulated. This called for the intervention from the authorities in the form of stricter laws and better regulation. In 2016, the government addressed this concern via RERA.
What is RERA?
To curb unethical behaviour by real estate developers, promoters or agents and to protect homebuyers’ interests, the Government of India implemented the Real Estate (Regulation and Development) Act (RERA) in 2016. According to RERA Act, every state and union territory in India has to establish a Real Estate Regulatory Authority to oversee the real estate sector within its boundaries.
Accordingly, the government of Madhya Pradesh, just like the states of Punjab, Haryana, West Bengal and others, introduced the RERA Act, Madhya Pradesh. The Madhya Pradesh Real Estate Regulatory Authority was established on 1 May 2017 to instil transparency and accountability in the state’s real estate transactions.
An Introduction of RERA MP
Functions of the RERA Act, Madhya Pradesh
Here are a few of the many functions that the RERA Act MP performs.
- Works towards ensuring full disclosure about real estate projects by promoters and developers
- Creates a productive environment for speedy resolution of real estate disputes
- Extends support and guidance to the state government on matters pertaining to development and promotion of the real estate sector
MP RERA Rules and Regulations
To implement the RERA Act all across Madhya Pradesh, the RERA rules of MP were created. These rules are divided into 10 chapters, where each chapter addresses a specific area. This ranges from registration of real estate projects and promoters to collection of fees and resolution of complaints raised by homebuyers, as well as other administrative duties.
Fees and Charges of RERA MP
As per the Act, all promoters, real estate agents and developers have to register themselves with RERA, Madhya Pradesh, by paying a fee as per their profile and project eligibility. As a stakeholder you can pay the fee via a demand draft or an online transfer. Here are the charges you will have to pay.
Fee for project registration
- Rs.10 per sq.mt. for land that is equal to or less than 1,000 sq.mt.
- Rs.20 per sq.mt. for land that exceeds 1,000 sq.mt.
Commercial or any other projects
- Rs.50 per sq.mt. for land that is less than or equal to 1,000 sq.mt.
- Rs.100 per sq.mt. for land that exceeds 1,000 sq.mt.
Fee for the registration of real estate agents
- Rs.25,000 for an individual
- Rs.2 lakh for an agent other than an individual
How to Register with RERA Madhya Pradesh?
As an aggrieved homebuyer you can register a complaint with the regulatory authority, adjudicating officer, or the appellate tribunal of RERA by paying a fee of Rs.1,000. On the other hand, promoters, developers, and agents have to register themselves and their properties with RERA MP by following a set protocol and adhering to timelines. However, you have to register a real estate projects only if:
- The area of the land is over 500 sq.mt.
- The proposed project has more than 8 apartments
Documents Required to Register for RERA MP
When registering your company or project as a promoter, developer or agent, you must produce certain documents. Typically, the ones required are as follows.
- Registration details including by-laws
- Memorandum and Articles of Association
- Passport size photographs
- Copy of PAN card and Aadhaar card
- Your business’ financial documents for the past 3 years including the balance sheet, audited profit and loss account, auditor’s report and ITR
- Documents showing that you have legal right over the said property
RERA Impact on Real Estate
Although its implementation was fairly recent, the RERA Act has already been able to regulate and promote many changes across the sector in India. Though some states like Maharashtra have implemented RERA to the T, a total of 12 states and union territories are yet to follow suit. Only once RERA is in full effect in every state of the country will it have the desired impact.
Additional Read: Effect of RERA on Real Estate
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