RERA Applicability in Residential Plot Projects: Compliance and Key Considerations

The applicability of the Real Estate Regulation and Development Act 2016 (RERA) in India can be a complex process, influenced by various factors including the nature of the project and the status of the buyers. This article provides a comprehensive guide to help understand if RERA is applicable to your residential plot project.

Residential Projects and RERA

RERA specifically applies to residential real estate projects involving the sale of plots, apartments, or buildings. Since your project includes residential plots, it is likely that RERA is applicable. However, it is essential to consider the following points:

Project Approval Date and RERA

RERA came into effect on May 1, 2017. If your project was approved in 2016, it may still fall under RERA if sales are conducted after the Act came into force. RERA applies to ongoing projects and new projects launched after its implementation.

Spot Buyers and RERA

If your customers are spot buyers, purchasing plots directly, they still fall under the purview of RERA. This is because RERA aims to protect the interests of all buyers in the real estate sector, including spot buyers.

Registration Requirement

Under RERA, developers are required to register their projects with the relevant Real Estate Regulatory Authority (RERA). If your project is covered by RERA, you must comply with the registration requirements and other obligations set forth by the Act. Failure to comply can result in legal penalties and fines.

State-Specific Regulations

RERA is implemented at the state level, and specific rules and regulations may vary from one state to another. It is crucial to check the provisions applicable in your location to ensure compliance.

Additional Considerations for Plot Projects

Plot Size and Saleable Units

If your plot is more than 500sq mtrs or the saleable units are more than 8, RERA applies in full. This requirement is concerned with the scale and commercial nature of the project.

Land Status and RERA

For plotting projects, if the land is non-agricultural and has obtained town planning sanction, RERA applies as these are classified as real estate projects. However, if the land is agricultural and does not have non-agricultural (Non-NA) or town planning (TP) sanction, the project is not considered a real estate project and thus not bound by RERA.

Legal and Compliance Advice

Given the complexity of RERA requirements, it is advisable to consult with a legal expert or a real estate professional to ensure full compliance and avoid potential legal issues. Proper documentation and adherence to regulations are critical for the success and smooth operation of your residential plot project.