Despite rapid growth in the Indian real estate sector’s compound annual growth rate (CAGR), investors faced issues relating to pricing, quality, and delivery of projects due to the unregulated sector. This required government intervention in the form of stricter laws and improved regulation. The government addressed this concern via RERA in 2016.
What is RERA MP?
To eliminate unethical behavior by real estate developers, promoters, or agents, the Government of India implemented the Real Estate (Regulation and Development) Act (RERA) in 2016. Every state and union territory in India is required to establish a Real Estate Regulatory Authority to oversee the real estate sector within its boundaries and protect homebuyers’ interests.
Accordingly, just like the other states, the government of Madhya Pradesh introduced the RERA Act in the state. The Madhya Pradesh Real Estate Regulatory Authority was established on May 1, 2017, to bring transparency and accountability to the state’s real estate dealings.
Functions of the RERA Madhya Pradesh
Here are the functions that RERA MP performs:
- Determined in ensuring full disclosure related to real estate projects by promoters and developers
- Creates a productive environment to provide speedy resolution of real estate disputes
- Extends support and guidance to the state government on matters relating development and promotion of the real estate sector
The Real Estate Regulatory Authority safeguards homebuyers’ interests. The act came into existence on 10th May 2017. The RERA Act significantly brought transparency to the real estate sector.
The RERA act is intended to assure, providing fair treatment to buyers and developers, and induce transparency in the system. Contrary to other state authorities, RERA Madhya Pradesh is implementing the RERA rules with extreme effort.
Impact of RERA on Real Estate
However, its implementation was fairly recent, the RERA Act has already been able to regulate and introduce many changes throughout the sector in India. RERA has made it mandatory for real estate agents to register them with the state RERA prior to facilitating any project and transaction. During the project registration, the promoters are required to list the agents associated with a project. Without registering with RERA, the agent is not allowed to carry out tasks associated with real estate projects. Asking agents to get them registered to bring transparency among the existing projects.
An agent is liable for a penalty of Rs 10,000 on the failure of registration. This may extend upto five percent of the project cost on continuity of violation depending upon the related sale or purchase.
Benefits of RERA implementation
MP RERA offers various advantages to the real estate sector. Whether if you are a developer, promoter, agent, or buyer, RERA MP has a lot to offer along with satisfaction and secure investment. Here are the benefits associated with the infusion of RERA Madhya Pradesh.
On-time delivery of projects: As per the provisions under the RERA Act, the proposed project should be completed within the given time frame as mentioned in the signed agreement. Late deliveries are liable for penalties. It further helps to avoid unnecessary delays and prevent cost escalations.
Guarantee: Projects registered with RERA are bound to a 5-year guarantee. With registered projects, buyers get top-notch construction quality.
No gimmick advertisements: This act ensures no misleading marketing strategies and false advertisements take place.
Fees and Charges of RERA MP
All promoters, real estate agents, and developers are required to get them registered with RERA Madhya Pradesh, by paying a fee depending on their profile and project eligibility. Stakeholder can pay the fee via demand draft or an online transfer.
These are the charges you will have to pay:
Fee for project registration
- Residential projects
Rs.10 per sq.mt. for land with an area of upto 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?
Below is the step-by-step procedure through which you can register your real estate project with RERA Madhya Pradesh.
- Log on to the official website of RERA Madhya Pradesh
- Now, click on the ‘Registration’ tab on the menu and click on ‘Project Registration’ from the resulting pop-up menu, this will redirect to the project registration page.
- Choose the promoter type and enter the required details like promoter details, bank details, and details about the project. Upload a scanned copy of all the required documents and click on ‘save’.
- Now you will be redirected to the payment gateway where you have to make payment for the registration.
- After paying the registration fee click on the ‘confirm’ tab to complete your registration.
Required documents for Registration
Here is the list of all the required documents that you should keep handy while registering to RERA MP:
- Details of registration
- Passport size photographs
- Memorandum of Association
- Articles of Association
- Copy of Aadhaar card/PAN card of the promoter
- Passport-size photos of chairman, director, and all the other members if the promoter is an organization
- Copy of Aadhaar card/PAN card of the promoter, chairman, director, and all the other members if the promoter is an organization
- In case the proposed project is planned to be developed in phases, you will need a copy of commencement certificate and approvals for each planned phase
- Details and layout plans for the project as sanctioned by a concerned authority
- Address details of the project along with the geo-location
- Details of the apartments in the proposed projects like number of flats, carpet area, balcony area, etc
- Layout plan and specifications of the proposed project, as issued by an concerned authority
- A copy of the consent of plot owner is to be furnished along with the joint development agreement if the promoter is not the legal owner of the land
- Copies of commencement certificates and approvals as issued by the concerned authority
- Audited P&L account, Balance Sheet, IT returns, of the promoter for the last 3 years
- Copy of the deed title and other legal documents stating promoter’s legal claim to the property
- Non-encumbrance certificate issued by a revenue authority
- Details on any encumbrances on the property
- Copies of the commencement certificate and approvals as provided by the concerned authority
- Copy of the allotment letter
- Sale Agreement
- Conveyance deed
- Number of garage areas for sale in the proposed project
- Open parking areas available in the proposed project
- Name and address of agents, architects, contractors, and engineers associated with the development of the proposed project
- Form B along with an affidavit
How to register a project with RERA MP
Registering a project with RERA Madhya Pradesh is quite simple, all you have to do is to follow the below process:
- Firstly, log on to the official website of RERA Madhya Pradesh and click on the ‘registrations’ tab to proceed
- This will redirect you to another page including a set of essential guidelines. Follow the guidelines carefully and fill up the basic details.
How to file a complaint on RERA MP?
Following is the step-by-step procedure to file a complaint on RERA MP.
- Log on to MP RERA’s official website.
- Click on the ‘complaints’ tab on the home page.
- Now, select the form either Form M or Form N, based on the nature of your complaint.
- You will be redirected to the payment portal after submitting the form. Here you will require to make payment for complaint registration, which is usually Rs 1000. Your complaint will be successfully registered and keep handy the complaint reference number for future reference.
You can easily check the complaint status by referring to the RERA MP website.
In addition, to file a complaint under MP RERA, you will have to lodge a complaint by filling out Form M. Meanwhile, to file an appeal with the adjudicating officer, you have to fill out and submit Form N.
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