Buyer guide
The plot-buying checklist we use ourselves
The checks that stand between a good parcel and an expensive mistake — run them on any colony, ours included.
9 min read
Legal
TATLPEditorial6 min read
The registration number on the brochure is not decoration. Here is the specific set of rights it gives you, and the gaps it does not cover.
The Real Estate (Regulation and Development) Act reorganised the relationship between developers and buyers in a way that is genuinely material — but it is widely misunderstood as a general guarantee, which it is not. Knowing precisely what it covers helps you use it. In Madhya Pradesh it is administered by MPRERA, and its register is public.
The escrow requirement
Seventy percent of the money collected for a project must be held in a dedicated account and used only for that project's land and construction costs. This directly attacks the practice that caused most historical delays: funding a new launch with money collected for an old one. It is the single most useful provision in the Act.
Carpet area, defined
Developers must quote carpet area using a statutory definition — the usable floor area within walls, excluding the balcony, shaft and common areas. Before this, 'super built-up area' was whatever the seller wanted it to mean, and comparing two projects was nearly impossible. Always ask for the carpet-area figure and compare on that basis alone.
Timelines and defect liability
The completion date filed with the authority is binding, and delay entitles you to interest or a refund. Separately, the developer carries a five-year defect liability from handover on structural defects and workmanship — raise a defect in writing within that window and it must be rectified within thirty days at no charge.
- 70% of collections held in project escrow
- Carpet area quoted to a statutory definition
- Binding completion date with interest payable on delay
- Five-year structural defect liability from possession
- Registration required before any marketing or sale
Where the gaps are
RERA does not vet the title. A registered project can still sit on contested land, so your own title search remains essential. It does not cover plots below the threshold size, which excludes a meaningful share of small colonies around Rewa. And it says nothing about diversion or colony approval — those are separate obligations under state law.
Treat the registration number as a floor, not a ceiling. Verify it on the MPRERA portal, read the filed documents, and then do your own diligence on top.
LegalAll insights
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