Legal checks before you buy in a gated community

A gate and a clubhouse say nothing about the paperwork. In a gated community you buy your flat or villa plus a share in land, roads, amenities and running costs that you will hold jointly with hundreds of other owners for decades. The legal problems tend to show up years later: a dispute with the association, a jump in maintenance, or a buyer's lawyer raising an approval gap when you try to sell. These are the checks to do before you book.

Title, at two levels

First check the parent landmeaning the whole parcel the community stands on. Your own unit can be registered correctly and still be affected by a defect in the parent title.

Then check the developer's right to build. In a joint development, confirm the landowner has transferred development rights to the builder, and that those rights cover the whole project.

A bank approving loans for the project is a helpful sign. It does not replace a title opinion from your own lawyer.

Land use and zoning

Confirm the land is classified for residential use, that any conversion from agricultural land is complete, and that zoning permits the density and height being built. Sometimes part of a layout is approved and another part is not. If you do not check the sanctioned plan, you can end up buying in a block that has no approval.

Layout and building approvals

Ask for the approved master layout, the approved building plans, environmental clearance where the project needs one, and fire approval for high-rise towers.

Then compare the sanctioned plan with the brochure. Count the towers, the amenities and the open spaces. Some amenities in a brochure are only proposed and have no sanction, and those are the ones that get dropped later.

What to read in the RERA registration

Registration is mandatory, and you need to read what was registered:

• Which phase the registration covers
• The declared completion date
• The number of towers and units
• The common amenities listed

In a phased project the clubhouse or pool may belong to a later phase. Early buyers sometimes find the facility they were promised is delayed or changed because it was never part of their phase.

Who owns the common areas

Most buyers assume the roads, parks and clubhouse belong to the residents. The law is on your side here. Under Section 17 of the RERA Act, the promoter must convey the undivided title in the common areas to the association of allottees and hand the common areas over to it. Unless a local law sets a different period, this has to happen within three months of the occupancy certificate.

In practice, builders delay the handover or write agreements that keep the clubhouse or other facilities with themselves. Read the sale agreement and the deed of declaration for what is defined as a common area and when it will be transferred. If a facility you are counting on is not on that list, ask why. Residents have little say over anything the developer still holds, and its cost can change without their consent.

The residents' association

Ask when the association will be formed, when the builder will hand over control, and how much corpus fund will be collected and transferred to it. Until the handover, the builder chooses the vendors and sets the charges. A long delay usually means higher costs and accounts nobody can see.

Maintenance clauses

Check who sets the maintenance rate, how often it can be revised, whether a corpus or sinking fund contribution is compulsory and whether it is refundable, and which services are included. Some agreements allow revision with no upper limit. Also check whether the builder maintains the project for a fixed period before the association takes over.

Undivided share of land

In an apartment project you get an undivided share (UDS) of the land. It is your ownership stake in the land, it affects resale value, and it decides what you get if the project is ever redeveloped. Check that the UDS in your agreement matches the approved layout and is proportionate to the size of your unit.

Access roads

Check that the approach road is approved, whether it is public or private, and whether your right to use it is recorded. A project that depends on an informal route across someone else's land can lose that access.

If you are buying a resale unit

Ask the association for a no-dues letter. Unpaid maintenance and property tax usually end up with the new owner.

If you want help reading a project's RERA filing or agreement terms, book a call with a relai advisor.