What is RERA Approved Plots?

The Indian real estate sector has undergone a significant transformation with the introduction of the Real Estate (Regulation and Development) Act, 2016, commonly known as RERA. For decades, buyers in India faced problems such as delayed possession, unclear land titles, and lack of accountability from developers. RERA has brought transparency and accountability to the sector, especially when it comes to buying plots in plotted developments.

When looking for a plot, you might have come across the term “RERA approved plot” or “RERA registered project.” But what does this mean in the real estate context? Why is it important? How does it protect you as a homebuyer? This article covers everything you need to know about RERA approved plots in India.

What is RERA?

RERA stands for the Real Estate (Regulation and Development) Act, 2016, an Act of Parliament that came into force to regulate and promote the real estate sector. Its main objective is to protect the interests of homebuyers, increase transparency, and establish a dispute redressal mechanism for the real estate sector in India.

Applicability of RERA to Plots

Many people believe RERA applies only to flats and apartments, but that is not correct. As per the definition under the Act, a “real estate project” includes the development of land into plots, apartments, or buildings for sale. Most States in India have extended RERA coverage to plotted development projects as well.

Key Points:

• Any project that develops land into plots for sale must be registered under RERA if it crosses certain minimum thresholds (usually 500 square metres of land or more than 8 plots).
• Both residential and commercial plotted developments can come under RERA, provided they meet the minimum criteria.

What Does “RERA Approved Plot” Mean?

When you see the term “RERA approved plot,” it refers to a plot that is part of a project which has been registered under the relevant State RERA authority. The developer has submitted all required documentation and has received a RERA registration number for the plotted development project.

Main Features:

1. RERA Registration Number: Every RERA approved project is given a unique registration number. All advertisements, brochures, and promotional material must mention this number.
2. Mandatory Disclosures: The developer must disclose vital information on the State RERA portal, such as:
   • Project layout plans
   • Sanctioned approvals from local authorities
   • Timeline for project completion
   • Details of title of the land
   • Details of the developer/promoter
   • Project status and updates
3. Transparency and Accountability: All details are available for public scrutiny on the RERA portal. Buyers can verify whether the project is genuinely approved or not.

Why is RERA Approval Important for Plots?

Transparency for Buyers

One of the biggest challenges in buying plots was the lack of verified information. Developers often withheld information or made misleading claims. With RERA, every aspect of the project is available on the public domain, so you can:

• Check the exact location and size of your plot
• Verify land title and ownership status
• Confirm if all legal approvals are in place

Escrow Protection for Your Money

Under RERA, developers must deposit 70% of the funds collected from buyers into a separate escrow account. This money can be used only for the construction and development of that specific project. This prevents the diversion of funds to other projects and reduces the risk of incomplete developments.

Timely Delivery and Compensation

RERA requires the developer to declare the timeline for completion of the project. If the developer fails to hand over possession within the stipulated period, the buyer is entitled to claim compensation or even a refund with interest.

Standardised Agreements

The sale agreement format is regulated under RERA, protecting buyers from arbitrary clauses or hidden charges. This ensures greater fairness and legal clarity.

Dispute Resolution Mechanism

If a dispute arises, buyers can approach the State Real Estate Regulatory Authority for speedy redressal, without the need for lengthy court battles.

How to Check if a Plot is RERA Approved?

Checking RERA approval is a straightforward process, thanks to online State RERA portals.

Steps to Verify:

1. Visit the State’s RERA Website: Each State has its own RERA website (for example, MahaRERA for Maharashtra, UP RERA for Uttar Pradesh).
2. Search the Project
   You can search by:
   • Project name
   • Developer’s name
   • RERA registration number
3. Verify Details: Check the project’s registration status
   • Review approved layout plans, timelines, and legal approvals
   • See if there are any complaints registered against the project
4. On-Site Verification:  When you visit the plot, check if the RERA registration number is displayed at the site and on all advertisements.

Key Legal Provisions Related to Plots Under RERA

Section 3: Mandatory Registration

No promoter can advertise, market, book, sell, or offer for sale any plot, apartment, or building without registering the project with the RERA authority.

Section 4: Application for Registration

The promoter must provide:

• Details of the project
• Approvals and sanctions
• Land title documents
• Project completion timeline

Section 11: Functions and Duties of the Promoter

Promoter must provide accurate information, adhere to approved plans, and handover possession as promised.

Section 18: Return of Amount and Compensation

If the promoter fails to complete or is unable to give possession, buyers can demand a refund with interest or compensation.

Benefits of Buying a RERA Approved Plot

Conclusion

Buying a plot is a big decision, and due diligence is a must. With RERA, homebuyers now have more power, more information, and better legal protection. A RERA approved plot is your best bet for a transparent, secure, and hassle-free real estate investment. It ensures that your hard-earned money is safeguarded and you get what is promised, within a reasonable timeline.

Always check RERA approval, go through all available documents, and do not hesitate to ask questions or seek legal advice. The RERA regime has made the market more organised, and as a buyer, you must use these provisions to your advantage.