S.3Chapter II — Registration of Real Estate Projects and Real Estate Agents
Prior registration of real estate project with Real Estate Regulatory Authority
No promoter can advertise, market, book, sell, or offer to sell any plot, apartment, or building in a real estate project without first registering the project with the State Real Estate Regulatory Authority (RERA). The registration requirement applies to: all new projects where the land area exceeds 500 sq.m. or the number of proposed apartments exceeds 8 (some states have lower thresholds). Phase-by-phase registration is allowed for large projects. Registration is mandatory before any marketing commences — even issuing brochures without registration is a violation. Ongoing projects (commenced but not received OC before RERA commencement) were required to register within 3 months of RERA commencement in the State.
Practice Note
The National Consumer Disputes Redressal Commission (NCDRC) and Supreme Court have held that RERA registration does not divest allottees of the right to approach Consumer Forums — both RERA and consumer protection remedies are concurrently available. The RERA Authority is the faster forum for OC/possession defaults; Consumer Forums offer higher compensation potential.
Related:S.4S.5S.6S.8
S.4Chapter II — Registration
Application for registration of real estate projects
The promoter must apply for RERA registration in Form A, disclosing: promoter's identity, PAN, registered address; land title details and encumbrances; approved building plans, layout, specifications, amenities, services; number, type and carpet area of all apartments; proposed project timeline and delivery schedule; names and addresses of all contractors, structural engineers, and architects; source of water, electricity, sanitation; and proforma of allotment agreement, agreement for sale, and conveyance deed. Crucially, the promoter must deposit 70% of all amounts received from allottees into a designated escrow account — the "70% collection account" — which can only be used for land cost and construction of that project (cannot be siphoned to other projects).
Practice Note
The 70% escrow requirement under S.4(2)(l)(D) is the core financial safeguard of RERA. Promoters who divert escrow funds to other projects are in criminal violation of RERA. In practice, the 70% threshold is calculated on the collections, not on the project cost — meaning for projects where land acquisition cost was high, the remaining 30% may be insufficient for debt servicing, requiring careful liquidity planning.
Related:S.3S.5S.11S.13
S.11Chapter III — Functions and Duties of Promoter
Functions and duties of promoter
The promoter must: (a) update the RERA project website quarterly with project status, approvals obtained, and financial position of the project account; (b) disclose all pending litigations relating to the project; (c) not advertise features that are not in the approved plans; (d) obtain all approvals and certificates before issuing the possession letter; (e) execute registered agreements for sale with every allottee before accepting more than 10% of the apartment price; (f) obtain Occupancy Certificate (OC) within the stipulated time; (g) form a Residents Welfare Association (RWA) or Apartment Owners' Association (AOA) and transfer common areas within 3 months of majority possession. The comprehensive disclosure and transparency obligations of S.11 are the backbone of RERA's consumer protection framework.
Related:S.13S.14S.16S.17
S.13Chapter III — Functions and Duties of Promoter
No deposit or advance to be taken without registered agreement for sale
No promoter can accept more than 10% of the cost of the apartment/plot/building as advance payment without first executing a registered agreement for sale with the allottee. The agreement for sale must specify: carpet area (not super built-up area), price payable, payment schedule, possession date, amenities and specifications, and obligations of both parties. If possession is not given on the agreed date, the promoter must pay interest at the prescribed rate (typically SBI MCLR + 2%) from the due date until actual possession, or give a full refund with interest. The "10% cap before registration" rule is one of the most impactful reforms — it prevents promoters from collecting large advances on the basis of only a booking form.
Practice Note
Many States' RERA regulations specify the proforma of the Agreement for Sale — promoters cannot deviate materially from the proforma. Clauses that attempt to dilute allottee rights (e.g., unilateral cancellation, super area-based pricing, non-disclosure of loading percentages) are void under RERA. The RERA Authority can direct refunds of any amounts collected in violation of S.13.
Related:S.11S.14S.18S.19
S.18Chapter III — Functions and Duties of Promoter
Return of amount and compensation — allottee's right
S.18 is the allottee's primary remedy provision. If the promoter fails to hand over possession on the agreed date (or fails to complete the project), the allottee has two options: (a) exit the project — receive a full refund of all amounts paid, plus interest at the prescribed rate (SBI MCLR + 2% per annum) from the date of each payment until the date of refund, plus compensation; (b) stay in the project — receive interest at the prescribed rate for every month of delay, without exiting. The right to refund exists even if the delay is due to reasons beyond the promoter's control (S.18(1) does not have a force majeure carve-out for RERA Authority adjudications, though the Authority can consider circumstances). The 2020 amendments carved out COVID-19 force majeure protection for many projects.
Practice Note
S.18 refund + interest is the most-used RERA remedy. For allottees who have taken a home loan, the refund order from RERA can be used to repay the bank — the interest received from the promoter partially offsets the interest paid to the bank. Tax treatment of S.18 interest: it is taxable as "income from other sources" in the allottee's hands (not as capital gains).
Related:S.13S.31S.35S.40
S.31Chapter V — The Real Estate Regulatory Authority
Filing of complaint with the Authority
Any aggrieved person (allottee, promoter, or real estate agent) may file a complaint with the RERA Authority against any person for violation of any provision of the Act or the rules/regulations. There is no limitation period specified in RERA for filing complaints (unlike the 2-year limit under the Consumer Protection Act). The RERA Authority adjudicates and passes orders including: refund of amounts, interest, compensation, direction to deliver possession, and direction to execute conveyance deed. Orders of the RERA Authority are appealable to the RERA Appellate Tribunal (S.44), and further to the High Court on questions of law (S.58).
Related:S.34S.35S.40S.44