Does RERA apply to plots?
Yes. The Real Estate (Regulation and Development) Act, 2016 defines a real estate project to include "the development of land into plots". A layout of sites is a real estate project in the same way an apartment block is. In Karnataka the Act is run by the Karnataka Real Estate Regulatory Authority, K-RERA, under the state's own RERA rules of 2017.
The practical rule for a buyer: if a promoter is advertising or selling sites in a layout that needs registration, the layout should have a K-RERA number before any money changes hands.
When a layout must be registered
The Act says no promoter may advertise, market, book or sell any plot in a real estate project "in any planning area" without registering it first. A planning area is the area covered by a planning authority, such as an urban development authority or a local planning authority with a master plan.
| Situation | Does the layout need K-RERA registration? |
|---|---|
| Layout in a planning area, land over 500 sq m | Yes, before advertising or selling |
| Land to be developed is 500 sq m or less, all phases together | No, the Act exempts it |
| Completion certificate issued before RERA came into force | No |
| Layout outside any planning area, approved by the local authority | Not automatically. K-RERA can order the promoter to register it in the interest of buyers |
| Layout developed in phases | Each phase is treated as a separate project |
Two things follow. First, the 500 square metre limit is small: about 5,380 sq ft, or the area of three or four 30 x 50 ft sites. Almost every layout that is sold as a project is above it. Second, the position outside planning areas is less clear-cut, so a rural layout without a RERA number is not automatically illegal. Ask the seller in writing why it is not registered and check the answer against the approval papers.
K-RERA's own guidance also says a project can be registered only after the plan has been approved by the plan-approving authority and a commencement certificate issued. So a RERA number tells you the layout plan existed when it was registered. It does not replace checking that approval yourself.
What registration gives a plot buyer
Registration is not a seal of quality. It is a set of duties on the promoter that you can enforce. For plotted layouts the ones that matter most are these:
- The 10% rule. The promoter cannot take more than 10% of the plot cost as an advance or application fee without first signing a written agreement for sale with you and registering it.
- A separate bank account. Seventy per cent of what buyers pay must go into a separate account in a scheduled bank, used only for the land and development cost of that project.
- Numbers on every advertisement. Any advertisement or brochure must show the K-RERA website address and the project's registration number.
- Quarterly updates. The promoter must update the project page every quarter with the plots booked, the progress of roads, drains and other internal works, and the status of approvals.
- Refund with interest. If the promoter fails to complete or hand over the plot as agreed, you can withdraw and claim your money back with interest. Under the Karnataka rules the interest rate is the State Bank of India's highest marginal cost of lending rate plus two per cent.
- Five years of defect liability. Defects in workmanship, quality or services that you report within five years of handover must be fixed by the promoter.
- Penalties. A promoter who sells without registering when the Act requires it can be fined up to 10% of the estimated project cost.
How to check a RERA number
The K-RERA website lists every registered project. A K-RERA project number usually begins with PRM/KA/RERA, followed by a string of numbers.
- Open the K-RERA website and choose the option to know project status.
- Search by the project name, the promoter's name or the district.
- Open the project and compare the promoter's name with the name on your agreement and on the sale deed.
- Match the survey numbers and village to the RTC and conversion order of the land you are buying.
- Check the number of plots and the approved layout plan uploaded with the registration. Your site number should be on it.
- Note the proposed completion date and whether it has been extended.
- Read the latest quarterly update. A project that has stopped updating is a warning sign.
The same site has a list of projects in default, a list of unregistered projects under investigation, and a register of real estate agents. If a broker is selling plots in a registered project, the broker should have a K-RERA agent number too.
What RERA does not check
A RERA number is one check among several. It does not prove:
- Title. RERA registration does not confirm that the promoter owns the land free of disputes. You still need the title deeds, RTC, mutation and encumbrance certificate. See encumbrance certificate in Karnataka.
- Conversion. The land must have been converted for non-agricultural use. Ask for the conversion order and check it. See DC conversion in Karnataka.
- That the plan is still valid. Plans get modified. Compare the plan on the RERA page with the one the planning authority approved. See layout approvals in Karnataka.
- That your plot gets a khata. The local body issues the khata, not K-RERA. See A-khata, B-khata and e-khata.
Layouts with no RERA number
You will meet layouts with no RERA number. The honest reasons are few:
- The land is 500 square metres or less.
- The layout was completed, with a completion certificate, before RERA came into force.
- The layout is outside any planning area and K-RERA has not ordered it to register.
- The seller is an individual selling one site they already own, not a promoter selling a project.
If none of these fits, the layout should be registered and is not. Do not pay an advance in that case. You can report an unregistered project on the K-RERA site.
A promoter who says registration is "in process" is not yet allowed to take bookings. Wait for the number, then check it.
If something goes wrong
If a registered promoter delays the plot, changes the plan without consent or does not refund, you can file a complaint with K-RERA online. Claims for compensation go to an adjudicating officer, who is or has been a district judge. Appeals go to the Karnataka Real Estate Appellate Tribunal and then to the High Court. Keep every receipt, the agreement for sale and all letters; your claim rests on them.
How we help
We check plotted layouts before you pay: the RERA position, the title, the conversion order, the layout approval and the khata route, for the exact site you are buying. Read every paper to check before buying land, then ask us to check a layout or see our documentation service.
