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Real Estate Laws in Indore


The real estate sector plays a crucial role in shaping the urban landscape of Indore, a rapidly growing city in Madhya Pradesh, India. To ensure transparency, accountability, and protection of the rights and interests of buyers and developers, the Real Estate (Regulation and Development) Act, 2016 (RERA) was introduced. RERA has brought significant changes to the real estate landscape in Indore by establishing a regulatory framework that governs the sale, purchase, and development of real estate projects in the city. This comprehensive guide provides an overview of the key real estate laws in Indore, highlighting the rights and obligations of buyers, developers, and other stakeholders involved in real estate transactions. By understanding these laws and their implications, individuals and businesses can navigate the real estate market in Indore with greater confidence, ensuring a fair and transparent process for all parties involved.

Real Estate Laws in Indore:

  1. RERA Registration: Real estate projects in Indore are governed by the Real Estate (Regulation and Development) Act, 2016 (RERA). Builders and developers are required to register their projects with the Madhya Pradesh Real Estate Regulatory Authority (MP RERA) before advertising, marketing, or selling any property.
  2. Mandatory Disclosure: Developers must provide detailed information about the project, such as land status, approvals, project timeline, carpet area, amenities, and financial details, to buyers at the time of project registration.
  3. Escrow Account: Developers are required to open a separate bank account for each project and deposit 70% of the funds received from buyers. This ensures that the funds are used solely for the development of that specific project.
  4. Standardized Agreement: RERA mandates the use of a standardized agreement between the developer and the buyer, which includes all the terms and conditions of the sale, possession date, and other relevant details.
  5. Timely Possession: Developers must adhere to the promised possession date mentioned in the agreement. If there is any delay, the developer is liable to pay compensation to the buyer as per the provisions of RERA.
  6. Carpet Area Calculation: RERA defines the carpet area, which is the net usable area within the walls of an apartment, as the basis for property sales. This ensures transparency and prevents misleading advertisements.
  7. Advance Payments: Developers can accept a maximum of 10% of the property cost as an advance payment or booking amount. Any amount above this limit can only be accepted after signing the sale agreement.
  8. Structural Defects Liability: Developers are responsible for fixing any structural defects in the property within a period of five years from the date of possession.
  9. Formation of RWA: Developers are required to facilitate the formation of a Resident Welfare Association (RWA) within three months of selling 51% of the units in a project. The RWA represents the interests of the residents and manages the common areas and facilities.
  10. Adherence to Building Codes and Permissions: Developers must comply with the building codes, rules, and regulations prescribed by the local authorities. They should obtain all necessary permits and clearances before commencing construction.
  11. Project Updates and Documentation: Developers must regularly update buyers about the progress of the project and provide relevant documents, such as completion certificates and occupancy certificates, upon completion.
  12. Rights and Remedies of Buyers: RERA provides buyers with various rights and remedies, including the right to seek information, file complaints, and claim compensation for any deficiency in services or violations by the developer.
  13. Agent Registration: Real estate agents and brokers operating in Indore must register themselves with MP RERA. This ensures transparency and accountability in real estate transactions.
  14. Penalties and Grievance Redressal: RERA has provisions for imposing penalties on developers for non-compliance and provides a mechanism for buyers to file grievances and seek redressal through the Real Estate Regulatory Authority.
  15. Restriction on Alterations: Developers cannot make any significant changes to the layout, design, or structural aspects of the project without the consent of the buyers.
  16. Anti-Discrimination: RERA prohibits discrimination against buyers based on religion, caste, sex, or any other grounds.
  17. Registration of Real Estate Projects: Developers must register their ongoing projects with MP RERA within the specified timeframe. Failure to register can result in penalties and legal consequences.
  18. Title and Ownership Verification: Buyers are advised to conduct thorough due diligence on the property, including verification of ownership, encumbrance, and title, before entering into any transaction.
  19. Environmental Clearances: Developers must obtain the necessary environmental clearances and comply with environmental regulations to ensure sustainable and eco-friendly construction practices.
  20. Dispute Resolution: RERA provides a structured dispute resolution mechanism through the Real Estate Regulatory Authority and the Real Estate Appellate Tribunal to resolve conflicts between buyers and developers in a time-bound manner.

It’s important to note that while these points provide an overview of real estate laws in Indore, it’s advisable to consult with a qualified legal professional or refer to the specific provisions of RERA and other relevant laws for detailed information and guidance regarding real estate transactions in Indore.


The real estate laws in Indore, governed by the Real Estate (Regulation and Development) Act, have brought about significant changes in the way real estate transactions are conducted in the city. With the introduction of RERA, there is now increased transparency, accountability, and protection for buyers and developers alike. The laws ensure that developers register their projects, provide accurate information, adhere to timelines, and maintain the highest standards of quality and construction. On the other hand, buyers have rights and remedies to seek compensation for any deficiencies or violations by developers. These laws also facilitate the formation of Resident Welfare Associations and provide a structured dispute resolution mechanism. By understanding and adhering to these real estate laws, the real estate sector in Indore can thrive while maintaining fairness and protecting the interests of all stakeholders. It is important for both buyers and developers to stay informed, consult legal experts when needed, and comply with the regulations to create a sustainable and transparent real estate market in Indore.

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