Understanding the Significance of Sanctioned Plans in Real Estate

Introduction

The Real Estate (Regulation and Development) Act, 2016 (RERA) has significantly transformed the real estate landscape in India, aiming to protect homebuyers and ensure transparency in property transactions.

One crucial aspect of RERA is the emphasis on sanctioned plans, which play a pivotal role in safeguarding the interests of both developers and homebuyers.

In this comprehensive guide, we’ll delve into the concept of sanctioned plans as outlined by the RERA Act and explore their importance in the real estate ecosystem.

If you’re interested in understanding the legal aspects of property transactions, delve into our guide on Legal Verification of Property in India. It provides valuable insights into the importance of legal verification in real estate.

What is a Sanctioned Plan According to RERA?

As per Section 2(zq) of the RERA Act, 2016, a “sanctioned plan” encompasses various elements, including the site plan, building plan, service plan, parking and circulation plan, landscape plan, layout plan, zoning plan, and structural designs. These plans are crucial components that require approval from competent authorities before the commencement of a real estate project.

People Also Read: Unlocking the Potential of Your Land: A Guide to FSI in Redevelopment

The Evolution of RERA and its Impact

Before the inception of the RERA Act, developers had the liberty to modify plans, leading to discrepancies and dissatisfaction among homebuyers. The introduction of RERA in 2016 aimed to rectify this by imposing strict regulations on developers, ensuring adherence to approved plans and specifications.

Key Provisions Regarding Sanctioned Plans

1. Mandatory Disclosure (Section 11(3)(a)): Developers must provide allottees with sanctioned plans, layout plans, and specifications at the time of booking, as outlined in Section 11(3)(a) of the RERA Act.
2. Registration Requirements (Section 4(2)(d)): Developers must submit sanctioned plans, layout plans, and specifications during the project registration process, per Section 4(2)(d).
3. Adherence to Plans (Section 14(1)): Promoters are obligated to adhere strictly to sanctioned plans and project specifications approved by authorities, as stipulated in Section 14(1).
4. Modification Restrictions (Section 14(2)): Any modifications to sanctioned plans require the previous written consent of flat owners. Additionally, alterations or additions within the project necessitate the consent of at least two-thirds of allottees, excluding the promoter (Section 14(2)).

Importance of Sanctioned Plans for Homebuyers

1. Informed Decision-Making: Potential homebuyers are urged to thoroughly examine sanctioned plans before finalizing a deal. These plans provide insights into the property’s layout, structure, and amenities.
2. Government Approval Assurance: Sanctioned plans ensure that the project has received necessary approvals from authorities, reducing the risk of delays or cancellations.
3. Legal Recourse (Section 18): If a promoter fails to provide the sanctioned plan, the allottee has the right to withdraw from the project, with the promoter compensating the entire amount paid with applicable interest (Section 18).
4. Protection Against Malpractice: Homebuyers have legal recourse under Section 14(2)(i) if there are unauthorized changes or deviations in the sanctioned plan.

People also read: What is TDR in Real Estate Plans

Conclusion

In conclusion, understanding the nuances of sanctioned plans under the RERA Act is crucial for both developers and homebuyers. These plans serve as a foundation for transparency, accountability, and fair practices within the real estate sector. As the real estate landscape continues to evolve, adherence to sanctioned plans remains instrumental in fostering trust and confidence among all stakeholders involved.

FAQs on Sanctioned Plans in Real Estate

Q1. What is the significance of the RERA Act in the real estate sector, and how does it address the concerns of homebuyers?

Ans1. The Real Estate (Regulation and Development) Act, 2016 (RERA) holds immense significance in the real estate sector as it aims to protect homebuyers by promoting transparency, accountability, and fair practices. It addresses concerns by ensuring that developers adhere to sanctioned plans and project specifications, preventing unauthorized modifications and promoting informed decision-making.

Q2. Can you elaborate on what is included in the term “sanctioned plan” according to Section 2(zq) of the RERA Act, 2016?

Ans2. According to Section 2(zq) of the RERA Act, 2016, a “sanctioned plan” includes various components such as the site plan, building plan, service plan, parking and circulation plan, landscape plan, layout plan, zoning plan, and structural designs. It also encompasses permissions like environmental approvals, all of which must be approved by competent authorities before the start of a real estate project.

Q3. How does the RERA Act regulate the disclosure of sanctioned plans to homebuyers during the booking process?

Ans3. As per Section 11(3)(a) of the RERA Act, developers are mandated to provide allottees with sanctioned plans, layout plans, and specifications at the time of booking and the issuance of the allotment letter. This disclosure ensures that homebuyers have comprehensive information about the proposed project from the outset.

Q4. What legal recourse do homebuyers have if the developer fails to provide the sanctioned plan, and how is compensation handled under the RERA Act?

Ans4. In the event that a promoter fails to provide the sanctioned plan, Section 18 of the RERA Act grants the allottee the right to withdraw from the project. The promoter is then liable to compensate the entire amount paid by the allottee, along with applicable interest.

Q5. Can developers make modifications to sanctioned plans without the consent of homebuyers, and what are the conditions outlined in the RERA Act regarding such modifications?

Ans5. Developers are restricted from making any modifications to sanctioned plans without the previous written consent of flat owners, as per Section 14(2) of the RERA Act. Furthermore, any alterations or additions within the entire project require the previous written consent of at least two-thirds of allottees, excluding the promoter.

Q6. How do sanctioned plans benefit homebuyers in terms of making informed decisions, and what key information can be obtained from these plans?

Ans6. Sanctioned plans offer homebuyers a detailed understanding of the property’s layout, structure, and amenities. They provide crucial information such as the location of buildings, parking areas, clubhouses, and other amenities, enabling buyers to make informed decisions about their investment.

Q7. How does the RERA Act address issues related to malpractice, unauthorized changes, or deviations in sanctioned plans?Ans7. Under Section 14(2)(i) of the RERA Act, if there are any unauthorized changes or deviations in the sanctioned plan without the knowledge of the buyer, the buyer has the right to file a complaint against the developer. This provision offers legal recourse to address malpractices and ensure compliance with approved plans.