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When it comes to buying plots or farmhouses in India, one key question arises. Is the project covered under RERA (Real Estate Regulatory Authority)? This guide breaks down the legal boundaries, shares real examples, and helps you make informed choices before investing.
What is RERA and Why It Matters?
The Real Estate (Regulation and Development) Act, 2016, or RERA, was introduced to bring transparency and accountability to property transactions. It mandates registration of real estate projects that involve:
- Land area over 500 square metres, or
- More than 8 plots or housing units
RERA doesn’t just regulate apartments or buildings it also governs plot-based developments and farmhouses, depending on certain conditions.
Are Plotted Developments Under RERA?
Yes — if the plotted development exceeds 500 sq m or includes more than eight plots, the project must be registered with RERA.
Importantly, even if no construction is planned and only raw plots are being sold, the project still qualifies as a "real estate project" under Section 2 of the Act. The developer must then:
- Register with the state RERA authority
- Disclose layout plans, approvals, and timelines
- Avoid misleading ads until registration is complete
Example:
A project with 12 residential plots covering 700 sq m in Pune must register under RERA before launching or advertising.
Failing to do so could lead to penalties of up to 10% of the estimated project cost.
What About Farmhouses?
This is where the law gets a little more nuanced.
- If a farmhouse is sold as an isolated unit on agricultural land, and there's no internal infrastructure, it’s not covered under RERA.
- However, if it’s part of a larger gated development with roads, drainage, electricity, parks, and water supply, it qualifies as a real estate project and must be registered if it crosses the size or unit limit.
Example:
A gated community near Bengaluru with 20 luxury farmhouses on 800 sq m, and shared amenities like paved roads and water lines, needs RERA registration.
Why This Matters to Buyers
Knowing whether a project is under RERA gives buyers:
- Legal protection from delays and fraud
- Access to official project documents
- Recourse in case of default or non-compliance
Bonus Tip:
Always check the project’s RERA registration number on the official state portal before making any payment.
Added Insight: Grey Areas You Should Know
- Conversion clauses: Developers sometimes market plotted or farmhouse developments under "agricultural use" to bypass RERA. Buyers must check local zoning laws and land use plans.
- Joint ventures or phase-wise registration: Some developers break large projects into smaller phases to avoid RERA limits. Look at the master plan carefully.
- Broker caution: Brokers might claim “RERA not required” to close faster deals. Always double-check on the state RERA website.
Conclusion
RERA applies to plotted developments and farmhouses when they form part of a real estate project with shared infrastructure and meet certain size or unit thresholds.
- Yes, to plotted developments if over 500 sq m or more than 8 plots
- Yes, to farmhouses as part of planned layouts with common facilities
- No, to standalone farmhouses on agricultural land without development
Being informed helps you make legally sound and safer investments. Always check the RERA registration before signing any agreement.
FAQs
1. Are plots without construction under RERA?
Yes, if the total area exceeds 500 sq m or includes more than 8 plots.
2. Are individual farmhouses exempt from RERA?
Yes, if sold as standalone agricultural plots with no development or infrastructure.
3. How to verify RERA registration for a project?
Visit the official state RERA website and enter the developer or project name.
4. Can a developer market a project before RERA registration?
No, any form of advertisement or sale before registration is illegal.
5. What documents are available once a project is RERA-registered?
You can view layout plans, approvals, timelines, and builder credentials.
6. What happens if a builder fails to register a RERA-eligible project?
They may face penalties up to 10% of the estimated cost and even imprisonment.
7. Do farmhouse projects in green zones need RERA registration?
Only if they meet the RERA thresholds and offer shared infrastructure.
8. Can I complain to RERA if a plotted project is delayed?
Yes, RERA allows you to file complaints and seek compensation or refunds.