Gated Communities Vs Apartments : Roads and OSR Gift Deeds

Public or private? Only the gift deed tells.

Saranya Manoj
4 Min Read

“Gated community with private roads” — a phrase that attracts thousands of buyers in Tamil Nadu. But behind the glossy brochures lies a crucial legal truth: once roads and open spaces are gift-deeded to the local body, they no longer belong to the developer or residents. They become public property. Understanding gift deeds, OSR requirements, and gated community realities is vital for safe investments.

Unlike plotted layouts, apartments and group housing projects follow a different rule. Here, the internal driveways and passages are treated as common areas jointly owned by all flat owners, while the OSR requirement is usually fulfilled within the project site. This means apartment roads remain private to residents.


What Are Gift Deeds of Roads & OSR?

  • Road Gift Deed: Developers must transfer all layout roads to the local body (Municipality, Panchayat, Corporation).
  • OSR Gift Deed: Parks and open space (10% of layout area) must be legally handed over to the local authority.
  • These deeds ensure public ownership and maintenance of essential spaces.

Without registered gift deeds, a layout is not fully sanctioned — even if marketed as “DTCP approved” or “gated.”


Apartments vs Layouts: A Key Difference

TypeWho Owns the Roads?Public Access?
Apartments / Group HousingInternal driveways and passages are common areas, jointly owned by flat owners under the Apartment Ownership Act.🚫 Restricted — only residents, guests, and service providers.
Plotted LayoutsRoads are gift-deeded to the local body as per TNCDBR 2019.✅ Public — anyone can legally use them.

👉 In short:

  • Apartments = private internal roads.
  • Layouts = public roads after gift deed, even if “gated.”

The Legal Reality in Tamil Nadu

  • Once gift deeds are registered, roads and OSR land are no longer private.
  • Local bodies are responsible for their upkeep.
  • Blocking access with gates is often illegal and can be challenged in court.
  • Courts in Tamil Nadu have repeatedly clarified that residents’ associations cannot claim ownership over gift-deeded roads.

Why It Matters for Buyers

  • False Sense of Exclusivity: Marketing often sells “gated” as private ownership.
  • Future Disputes: Residents restricting outsiders can face legal challenges.
  • Resale Risks: Buyers may lose value if approvals or gift deeds are missing.
  • Amenity Guarantee: Gift deeds ensure parks and roads are protected for public use.

Regulations & Local Rules

  • Tamil Nadu Combined Development & Building Rules, 2019: Mandates OSR and road gift deeds for all layouts.
  • TNRERA Act: Misrepresentation of “exclusive gated living” without legal basis can attract penalties.
  • Apartment Ownership Act, 1994: Defines internal roads in apartments as private common property.

Common Mistakes & How to Avoid Them

  • ❌ Believing “gated = private.”
  • ❌ Ignoring whether gift deeds are registered.
  • ❌ Confusing apartments with layouts.
  • ✅ Always ask for gift deed registration numbers.
  • ✅ Verify in the Encumbrance Certificate (EC).
  • ✅ Physically check OSR sites (parks, playgrounds).

Practical Tips for Buyers

  • Ask for layout’s final approval order, not just provisional.
  • Confirm gift deed entries in the EC.
  • In apartments, verify that internal roads are listed under “common areas.”
  • Use Patta & EC Tools for boundary and gift deed checks.
  • For extra safety, order a Layout Approval Verification.

Conclusion

In Tamil Nadu, “gated” doesn’t always mean private.

  • In apartments, internal roads are private, shared by residents.
  • In layouts, once gift deeds are executed, roads and OSR land belong to the public.

For buyers, the safest move is to check the gift deed records and approvals before trusting marketing promises. Because in real estate, it’s the documents — not the gates — that define ownership.

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