Buying a plot of land is a dream come true for many. However, in the complex environment of Indian real estate, the dream can soon turn into a legal nightmare if you miss out on a very vital technical aspect: the RL status of a plot.
Whether you are interested in residential plots, investment plots, or NA plots, the RL status of a plot is something you cannot afford to miss out on. This blog is a comprehensive guide to why you must check the revenue records, what RL approval means, and how you can make your deal 100% legally correct.
What is RL Status in Real Estate?
The term 'RL', also known as 'Residential Layout', refers to an approved land development in Maharashtra state.
The local government authority, including the Nagpur Metropolitan Region Development Authority and the Town Planning Department, approves 'RL Status', which permits residential development on the land.
Key Characteristics of an RL Plot:
- Compliance with zoning regulations: The plot must be located within the residential zoning area according to the Master Plan of the city.
- Infrastructure readiness: The plot needs to reach specific standards, which include road width requirements and space requirements, before it can receive 'RL' approval.
- Legal convertibility: If the land was acquired for agricultural purposes, 'RL Status' ensures that it has already been converted for non-agricultural purposes.
Why Must Property Buyers Check Revenue Records for RL Status?
The only way to determine whether the seller’s claim of "RL status" is genuine or not is by verifying the revenue records. Many property buyers are only aware of the claims by the sellers, but in reality, the actual legal status is only in the 7/12 extract, Mutation Register, and Record of Rights (RoR).
1. Verification of Title and Ownership
Revenue records are the legal foundation of land ownership. By checking the Mutation Entry (Ferfar), you can verify the actual history of the land. If the RL status is not there in the revenue records, then the land is actually "unauthorised," even though the seller might have a registered sale deed.
2. Eligibility for Home Loans
Most nationalised and private sector banks, including SBI, HDFC, ICICI, etc., will fund only RL-sanctioned plots. If you purchase a Non-RL plot, you will have to pay 100% cash, as banks consider unauthorised layouts as high-risk investments.
3. Protection Against Demolition
Local authorities often conduct "Encroachment Drives" or "Demolition Drives" against such plots. A plot for which the owner has an RL Certificate is fully protected, as it is legal and complies with the Unified Development Control and Promotion Regulations (UDCPR).
How Does RL Status Affect Your Construction Rights?
It is often assumed that if you are the owner of the plot, you have the right to build on it. This is not true. A Registered Sale Deed proves that you are the owner of the land, but it does not prove that you have the right to build on it.
To procure a Building Sanction Plan (Blueprints) for the building, it is necessary for the plot to have an RL Status. Without it:
- You will not be able to procure a Temporary Electricity Connection.
- You will not be granted a Water Connection by the local body.
- The building will be deemed an "Illegal Construction," and it will not be possible for you to procure an Occupancy Certificate (OC) at a later stage.
Is an RL Plot Different from an NA Plot?
In the Indian real estate market, especially in Maharashtra, terms like NA (Non-Agricultural) and RL (Residential Layout) are often used interchangeably. However, in reality, these are two different stages of approvals.
It is very important to understand the difference between the two to make sure the property is not only legal but also "bankable." Here is the difference between the two in terms of major parameters:
Comparison: NA Plot vs. RL Plot
Primary Focus:
- NA Plot: In the case of an NA Plot, the major focus is on the conversion. It is the official change in the land use and status of land.
- RL Plot: In the case of an RL Plot, the focus is on urban planning. It is the official sanction of the internal map of the plots.
Sanctioning Authority:
- NA Plot: This is usually taken care of by the District Collector or Tehsildar, who ensures that the government receives their conversion tax.
- RL Plot: This is taken care of by the Town Planning Department or the NMRDA, PMRDA, or MahaIT.
Construction Rights:
- NA Plot: It is a general permission for the use of the plot for purposes other than farming. However, the permission does not allow for the construction of a particular type of house.
- RL Plot: The permission is for the construction of a residential house on the plot. The approval also specifies the Floor Space Index (FSI), margins, and height of the construction on the particular plot.
Infrastructure Requirements:
- NA Plot: The plot can be marked as "NA" even if it is a single isolated plot of land without any infrastructure.
- RL Plot: To obtain the RL certificate, the developer has to lay internal roads, water pipelines, sewage lines, and "Open Spaces" or "Amenity Spaces" as per the Unified Development Control and Promotion Regulations (UDCPR).
What are the Risks of Buying a Non-RL Plot?
Buying a Non-RL plot appears to be a good deal, as these plots are priced 30% to 50% lower than the sanctioned plots. However, the long-term costs are staggering.
- Legal Vulnerability: You may be taken to court and fined for "Unauthorised Sub-division of Land."
- Lack of Amenities: Developers of Non-RL layouts do not provide drainage, streetlights, and road access.
- Resale Vulnerability: Future homebuyers in need of a Home Loan will be unable to purchase your property, limiting your exit and exit returns.
- Regularisation Fees: The Government may introduce a Gunthewari Scheme or a Land Regularisation Scheme, and you may be forced to pay heavy penalties to regularise your plot.
A Step-by-Step Checklist for Property Buyers
Before you enter into a contract and invest your hard-earned money in the form of a token amount, follow this due diligence checklist:
- Request the RL Letter: Request the original letter issued by the Town Planning Department.
- Verify the Map: Verify that the plot number you are purchasing matches the actual plot number on the Sanctioned Layout Map.
- Verif 7/12 Extract: Verify the NA order number and the owner’s name in the revenue records.
- Obtain an Encumbrance Certificate (EC): Verify that the plot does not have any existing mortgage and disputes.
- Consult a Lawyer: Verify the Mother Deed and the Chain of Documents with a professional property lawyer.
Final Thoughts: Security Over Savings
In real estate, the cheapest deal is not necessarily the best deal. A plot without RL status is considered "dead capital," as it is difficult to build on, impossible to finance, and almost impossible to sell for top dollar.
By insisting on RL-sanctioned plots and checking them via the revenue records, you are securing your hard-earned money and ensuring your home is built on solid legal ground.
