Introduction
Imagine investing in land where transparency, trust, and buyer protection form the foundation of every transaction. This isn’t a dream—it’s the reality shaped by RERA-approved projects across India. For anyone planning to buy or sell land in Coimbatore, understanding RERA (Real Estate Regulation and Development Act) is essential. Let’s explore why RERA approval is not just an advantage but a necessity for both buyers and land promoters in Coimbatore.
What Is RERA?
The Real Estate (Regulation and Development) Act (RERA) was introduced in 2016 to bring structure, accountability, and transparency to the real estate sector. Under this Act, developers must register their projects with the state’s Real Estate Regulatory Authority before marketing or selling.
Builders are required to:
Disclose project plans, timelines, and financial details.
Deposit 70% of collected funds into an escrow account.
Deliver projects on time and as per agreed specifications.
Obtain consent from two-thirds of buyers before making changes to project plans.
This regulation has transformed how plots promoters in Coimbatore operate, ensuring fair practices and protecting homebuyers from financial or legal risks.
Is RERA Approval Necessary?
Yes—RERA approval is mandatory for most real estate projects. For land promoters in Coimbatore, RERA registration is not just a compliance measure but a mark of trust and legitimacy.
Here’s why RERA approval matters:
Legal Authorization: Developers can legally advertise, market, or sell plots only after registration.
Buyer Protection: It ensures buyers get what they are promised, within the stated timelines.
Transparency: RERA brings openness in transactions, building long-term trust between buyers and promoters.
Benefits of RERA-Approved Land and Plots
1. Registration and Accountability
All large-scale land development projects must be registered under RERA before launch. This ensures plots for sale in Coimbatore are backed by verified information about layout, approvals, and timelines.
2. Transparency
Builders must regularly update project details, including land titles, layout approvals, and progress reports, on the RERA website—giving buyers full visibility into their investments.
3. Buyer Protection
Buyers can rest assured knowing that land promoters in Coimbatore cannot alter plans or delay delivery without facing penalties. Compensation for delays is mandatory under RERA.
4. Escrow Account
Developers must deposit 70% of funds into an escrow account, ensuring the money is used only for the specific project. This eliminates fund diversion and guarantees construction progress.
5. Fast Dispute Resolution
RERA enables a quick redressal process for disputes between buyers and developers, ensuring fair outcomes without lengthy court delays.
6. Penalties for Non-Compliance
Developers and agents who fail to follow RERA norms can face heavy fines or imprisonment, promoting professionalism across the industry.
Criteria for Getting RERA Approval
For plots promoters in Coimbatore and those dealing in land for sale in Sulur, meeting RERA’s eligibility criteria is crucial.
Here’s what’s required:
Project Size: Projects above 500 sq.m or with more than 8 units must be registered.
Detailed Information: Developers must submit layout plans, timelines, and financial data.
Escrow Account: 70% of collected funds must be held in escrow.
Legal Clearances: Necessary local authority approvals must be obtained.
Builder Track Record: Developers must disclose past project performance and litigation history.
Buyer Consent: Changes to plans need approval from two-thirds of buyers.
Why You Shouldn’t Buy or Sell Land Without RERA Approval
Legal and Financial Risks
Selling or buying unregistered plots is illegal under RERA for qualifying projects. Developers can face fines up to 50% of project costs or imprisonment. Unregistered agents may also face daily penalties.
Buyer Risks
Lack of Transparency: Without RERA, buyers may not have access to genuine project details.
Loan Challenges: Banks prefer financing only RERA-approved projects.
Disputes: Non-RERA projects face higher risks of delays and disagreements.
Lower Resale Value: RERA-registered properties retain higher market value and buyer confidence.
Developer Responsibilities
Disclosure: All project data must be published on the RERA website.
Escrow Funding: Ensures funds are used appropriately.
Buyer Compensation: Developers must compensate for delays or defaults.
Conclusion
In today’s real estate market, RERA approval is not optional—it’s essential. For buyers, it ensures transparency and protection. For land promoters in Coimbatore, it builds credibility and long-term trust with clients.
Whether you’re exploring plots for sale or considering land for sale in Sulur, always prioritize RERA-registered projects. This not only protects your investment but also supports a fair, transparent, and reliable real estate ecosystem.