Is an RERA-Registered Plot Safe to Buy? Essential Due Diligence Steps
Buying a plot that is RERA (Real Estate Regulatory Authority) registered is generally considered safer than buying one that is not. However, it does not eliminate the need for thorough due diligence. This article discusses what the RERA certifies, the importance of conducting your own checks, and how RERA ensures transparency and protects buyers.
What RERA Certifies
Project Registration
RERA mandates that real estate projects must be registered. This ensures that all project details are available in the public domain, providing transparency and accessibility to potential buyers.
Title of the Land
RERA mandates developers to have clear titles to the land on which the project is built. This helps in reducing disputes related to ownership, ensuring a clear title deed.
Timely Completion
Developers are required to provide a timeline for project completion, and RERA enforces penalties for delays. This offers some assurance to buyers that the project will be completed within a specified timeframe.
Transparency
Developers must disclose project details, including approvals, layout plans, and amenities. This enhances transparency and ensures that all necessary information is available to potential buyers.
Due Diligence: Beyond RERA Certification
Despite RERA's certifications, it is essential to conduct your own checks to ensure a safe and secure investment. Here are some vital steps you should consider:
Title Deeds
Verify the title deed to ensure that the seller has the right to sell the property. This is a critical step to prevent any legal issues down the line.
Land Use Approvals
Check local zoning laws to confirm that the land is designated for the intended use (residential, commercial, etc.). This ensures that the plot meets the necessary legal requirements.
Encumbrances
Ensure there are no legal encumbrances or disputes related to the property. This involves checking for liens, liens, or any other financial obligations associated with the land.
No Objection Certificates (NOCs)
Look for necessary No Objection Certificates (NOCs) from relevant authorities. These documents are essential for obtaining the necessary permissions to develop and use the land.
Conclusion
While RERA registration adds a layer of protection and credibility, it is advisable to perform thorough checks on titles and approvals before making a purchase. These checks will help mitigate risks and ensure a safe investment.
RERA does not do any due diligence for you; it makes developers commit and ensures compliance. Developers make various commitments to different clients, but RERA ensures that all data related to development is transparently shared. If a developer fails to meet RERA requirements, RERA takes action to fix the issues.
Therefore, it is crucial to perform your due diligence irrespective of RERA registration. This will provide you with a comprehensive understanding of the property and protect your investment.