Following the RERA Guideline in Land Purchase: Things Buyer Must Know

Land transactions in India’s real estate sector have been open to problems because they lack clear rules and transparency. Property transactions in real estate projects have become more simplified and more in favor of buyers thanks to the enactment of RERA in 2016. However, many potential landowners are still not sure if RERA really helps them in land buying. 

A DSA can help a person with the financing option in such cases. Here, the DSA’s full form is Direct Selling Agent, and they are the ones who can help the buyer connect with the right lender.

The purpose of this blog is to outline RERA’s role in land purchases and guide you in safe real estate investments all over India.

1.      Understanding What RERA Covers

RERA aims to bring more openness, responsibility and effectiveness to how real estate works in India. Under the Act, both residential and commercial projects are covered, mostly when developers work on building projects or only plot land for public sale. But buying raw land or just farmland, is not covered by RERA unless it is part of a plotted or housing project.

This means that RERA covers plotted developments, group housing projects and commercial ventures bigger than 500 sq. meters or 8 units and those where a promoter plans to offer plots or apartments to buyers. A registered RERA project must be involved if you are buying a plot in a plotted development.

2.      How RERA Applies to Land Transactions

RERA registration is required when the property you’re purchasing is part of a builder’s planned area or plot development. Because of this, students:

·         The relevant authority has approved the plans for the project.

·         A developer cannot decide on their own to alter the layout plan.

·         The developer is required to outline when possession can be taken.

·         Buyers are protected if what they buy is wrongfully delayed or misdescribed.

RERA rules do not apply when you purchase land directly from someone who is the owner, not from a company or developer. If you find yourself in this situation, check the title, encumbrance, what the land is used for, and zoning laws.

3.      Benefits of Buying RERA-Registered Land Projects

Registering with RERA protects buyers by making the buying process more open. When the plot you’re purchasing is part of a project included by RERA, you receive more protection.

·         The presence of a verified title holder.

·         Outlined how the project should move forward and what responsibility the project has if it is delayed.

·         Easy-to-read graphics of the layout, the size of the carpeted area, and plans for all infrastructure services.

·         Options to appeal to RERA Authority or the Appellate Tribunal if the buyer is cheated or the contract is not completed.

Essentially, the developer must guarantee that the project is legal, delivered promptly, and follows all regulations during development.

4.      Important Guidelines to Follow While Buying Land

Everyone buying land in India should consider these guidelines, no matter if RERA impacts them or not:

·         Look at the first deed and history of the property and make certain the land is not currently involved in any cases.

·         Before buying, confirm with town planners that the land has the right designation for what you intend to use it for (residential, commercial, or agricultural).

·         If the loan covers a development, make sure to check approvals from DTCP, HMDA, or BDA.

·         An Encumbrance Certificate guarantees that no money is owed on the land.

·         Plotted or housing projects should always provide their RERA registration number, which you can check against the state RERA site.

·         Look at the Land Official’s Certificate and Receipts for Taxes: Confirm that the seller’s name is listed in the land’s mutation and that the property is up to date with tax payments.

5.      RERA Guidelines For Fair Practices in Plotted Developments 

RERA has greatly improved the rules for plotted development schemes since there were few guidelines for them before. It is now required by many state governments that plot-only projects must be registered with RERA when land is portioned for advertisement to the public.

According to RERA, in situations like these:

·         Any rearrangement requires advance permission from the local planning board.

·         The developer must describe the current state of infrastructure (roads, drainage, and electricity) within the complex.

·         No company can make false or misleading claims without having legal support.

As a result, people purchasing plots in suburban or growing town areas have more security and support from authorities in future disputes.

After checking all the guidelines, one can consult with the DSA partner , and through that, the work for arranging the funds can start to happen. An individual who is seeking long-term asset building that will prioritize the legality of the project and will have higher long-term value.