The Real Estate Regulation and Development Act (RERA) is a landmark legislation passed by the Government of India in 2016 with the objective of protecting the interests of homebuyers and promoting transparency in the real estate sector. The act established a regulatory authority in each state to oversee the implementation of the provisions of the act.
In Meghalaya, the RERA was notified in November 2020, and the Meghalaya Real Estate Regulatory Authority (MERA) was established to regulate and promote the real estate sector in the state. The primary aim of MERA is to ensure that real estate projects are completed within the stipulated time frame, and homebuyers are not left in a lurch due to delays or other issues.
Under the provisions of the RERA Meghalaya, all real estate projects that are larger than 500 square meters or have more than eight apartments need to be registered with MERA. Developers must also provide a detailed project plan, including the timeline for completion, the number of units available, and the amenities and facilities that will be provided.
The act also mandates that developers must deposit 70% of the funds collected from buyers in an escrow account, which can only be used for construction purposes. This provision ensures that developers cannot divert funds meant for construction to other projects, and it provides buyers with the assurance that their investment will be used only for the development of the project.
The RERA Meghalaya also establishes a fast-track dispute resolution mechanism for resolving issues between homebuyers and developers. In case of any dispute, homebuyers can file a complaint with MERA, which will then try to resolve the issue within 60 days.
The RERA Meghalaya has been instrumental in promoting transparency and accountability in the real estate sector in the state. The act has provided homebuyers with the necessary safeguards and has helped restore their confidence in the real estate market. It has also helped encourage more investment in the sector and has been instrumental in promoting the growth of the real estate sector in Meghalaya.
Impact of RERA Meghalaya
The RERA Meghalaya was enacted in 2020 with the objective of regulating and promoting transparency in the real estate sector. The impact of RERA Meghalaya on the real estate sector can be seen in the following ways:
- Increased transparency: RERA Meghalaya has brought in more transparency in the real estate sector by making it mandatory for developers to register their projects and disclose all relevant information related to the project.
- Protection of homebuyers: RERA Meghalaya ensures that the interests of homebuyers are protected by making it mandatory for developers to complete projects within the stipulated time and adhere to quality standards.
- Increased credibility: RERA Meghalaya has brought in more credibility to the real estate sector by regulating the activities of developers and agents. This has resulted in increased trust and confidence among homebuyers.
- Reduction in fraudulent activities: RERA Meghalaya has made it mandatory for developers to register their projects, provide detailed information, and adhere to quality standards. This has resulted in a reduction in fraudulent activities in the real estate sector.
- Boost to the real estate sector: The increased transparency, protection of homebuyers, and credibility of the sector have resulted in a boost to the real estate sector in Meghalaya. This has led to more investments and increased activity in the sector.
Provisions Under RERA Meghalaya
Some of the key provisions of RERA Meghalaya are:
- Registration of projects: RERA Meghalaya makes it mandatory for all new and ongoing real estate projects to be registered with the regulatory authority. The registration process includes providing details about the project, the developer, the land title, and financial details.
- Compulsory disclosure of information: Developers are required to disclose all relevant information about the project such as the layout plan, floor plans, carpet area, number of apartments, facilities, and amenities provided, etc.
- Standardization of unit sizes: RERA Meghalaya has standardized the definition of carpet area to ensure that there is uniformity in the way developers measure and advertise their projects.
- Establishment of escrow account: Developers are required to deposit 70% of the funds collected from buyers into an escrow account. This ensures that the funds are used only for the development of the project and not diverted for other purposes.
- Timely completion of projects: Developers are required to complete the projects within the stipulated time as mentioned in the agreement with the homebuyers. In case of any delay, developers are required to compensate the buyers as per the provisions of the act.
- Grievance redressal mechanism: RERA Meghalaya has set up a grievance redressal mechanism where buyers can file complaints against developers for any grievances related to the project.
- Penalty provisions: In case of any violation of the provisions of the act, developers can be penalized, and in case of repeated violations, their registration can be revoked.
These provisions ensure that the interests of homebuyers are protected, and there is transparency in the real estate sector in Meghalaya.
Benefits for homebuyers under RERA
Under RERA Meghalaya, homebuyers are provided with several benefits, including:
- Protection of their interests: RERA mandates that all real estate projects must be registered with the state RERA authority. This ensures that the project details are verified by the regulatory authority and homebuyers are protected from fraudulent activities by developers.
- Timely delivery of projects: RERA Meghalaya makes it mandatory for developers to complete projects within the stipulated timeline mentioned in the agreement with homebuyers. If developers fail to meet the deadline, they are liable to pay compensation to homebuyers.
- Disclosure of project details: Developers are required to disclose all information about the project, including details about the land, approvals, layout plans, and schedule of completion. This ensures that homebuyers have complete information about the project before making a decision.
- Standardized sale agreements: RERA mandates that all sale agreements must be drafted in a standard format. This ensures that homebuyers are not at a disadvantage and the terms of the agreement are fair and transparent.
- Redressal of grievances: RERA Meghalaya has provisions for a fast-track dispute resolution mechanism. This ensures that homebuyers can approach the regulatory authority for any grievances related to the project or the developer.
RERA Meghalaya provides a level playing field for homebuyers and ensures that the real estate sector operates in a transparent and accountable manner, which is beneficial for all stakeholders involved.
Functions of RERA Meghalaya
RERA Meghalaya is the regulatory authority in the state of Meghalaya responsible for the implementation of the provisions of the Act. The following are the functions of RERA Meghalaya:
- Registration of Real Estate Projects: RERA Meghalaya is responsible for the registration of real estate projects and agents who are involved in the sale or purchase of properties.
- Protection of Homebuyers: RERA Meghalaya ensures that the interests of homebuyers are protected by ensuring that builders adhere to the guidelines and regulations set forth by the Act. Homebuyers can file complaints with RERA Meghalaya if they feel that their rights have been violated.
- Dispute Resolution: RERA Meghalaya is responsible for the resolution of disputes between builders and homebuyers. This includes mediation, conciliation, and adjudication of disputes.
- Transparency in the Real Estate Sector: RERA Meghalaya ensures that there is transparency in the real estate sector by requiring builders to disclose all relevant information about the project, including the timeline for completion, land status, and approvals obtained from the relevant authorities.
- Enforcement of Rules and Regulations: RERA Meghalaya is responsible for the enforcement of the rules and regulations set forth by the Act. This includes the imposition of penalties on builders who violate the guidelines.
- Promoting Accountability: RERA Meghalaya promotes accountability in the real estate sector by requiring builders to maintain a separate escrow account for each project and to deposit 70% of the funds collected from homebuyers into this account. This ensures that builders use the funds for the specific project and not for any other purpose.
Process for Agent Registration
Each state has set up its own Real Estate Regulatory Authority (RERA) to oversee the implementation of the Act at the state level.
If you wish to register as a real estate agent with RERA in Meghalaya, you can follow these steps:
- Visit the official website of RERA Meghalaya at rera.meghalaya.gov.in
- Click on the ‘Registration’ tab on the homepage and select the option ‘Real Estate Agent’.
- You will be directed to a new page where you can read the instructions for registration. Click on the ‘Registration Form for Real Estate Agent’ link to download the form.
- Fill in the required details in the form, including your personal information, contact details, and professional information.
- Attach the necessary documents, such as proof of identity, proof of address, and PAN card.
- Pay the registration fee, as specified by RERA Meghalaya, through the online payment gateway provided on the website.
- Once you have completed the registration form and made the payment, submit the form and wait for confirmation of your registration from RERA Meghalaya.
It is important to note that, as a registered agent, you will be required to comply with the regulations of RERA Meghalaya and maintain transparency in your business transactions. Failure to comply with the regulations can result in penalties and legal action
Filing a complaint with RERA Meghalaya
RERA (Real Estate Regulatory Authority) is a regulatory body that oversees and regulates the real estate sector in India. If you have a complaint against a builder or developer, you can file a complaint with RERA to seek redressal. Here’s how you can file a complaint with RERA:
- Visit the RERA website of your state where the property is located.
- Look for the “Complaint Registration” or “File a Complaint” section on the website.
- Register yourself on the website by providing your basic details such as name, contact number, and email ID.
- Once you have registered, fill in the complaint form with the details of the builder/developer against whom you want to file a complaint.
- Provide all relevant details such as the project details, the amount paid, the timeline of the project, and the nature of the complaint.
- Upload any relevant documents such as the booking form, allotment letter, and payment receipts.
- Pay the applicable fee for filing the complaint. The fee varies from state to state.
- Once you have submitted the complaint, you will receive a complaint number, which you can use to track the status of your complaint.
The RERA authority will then investigate the matter and take the necessary action to resolve the complaint. It is advisable to engage a lawyer or a legal expert to help you with the complaint filing process and to represent you during the proceedings.
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