Under the Real Estate (Regulation and Development) Act, 2016, promoters must register real estate projects with the state RERA authority before advertising or selling, where the land exceeds 500 square metres or the project has more than eight apartments. Real estate agents must also register. Promoters must keep 70% of buyer collections in a separate project account.
Which projects must register
Residential and commercial projects above the size threshold, including ongoing projects without a completion certificate when RERA came into force. States can prescribe lower thresholds.
Promoter obligations
- Register before advertising, marketing or selling
- Deposit 70% of amounts collected into a separate account for construction and land costs
- Upload project details, approvals and quarterly progress updates
- Sell by carpet area and follow the agreement for sale format
- Rectify structural defects reported within five years of possession
Project registration process
- Collect approvals, title documents, layout and sanctioned plans.
- Apply on the state RERA portal with project, promoter and financial details.
- Pay the fee, usually based on area.
- Receive registration number to display in all advertisements.
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Get expert help →Agent registration
Agents who facilitate sale or purchase of units in registered projects must register with the state RERA, quote their registration number, and maintain books of account.
Frequently asked questions
Can a builder advertise before RERA registration?
No. Advertising, marketing, booking or selling units in a project that requires registration is prohibited until the project is registered with RERA.
Is RERA registration required for plotted development?
Yes, plotted developments meeting the threshold are real estate projects under the Act and must be registered, subject to state rules.
What is the penalty for not registering a project?
The penalty can be up to 10% of the estimated project cost, and continued violation can lead to further penalty and imprisonment as provided in the Act.
How long is RERA agent registration valid?
Agent registration is granted for a period specified by state rules, commonly five years, and must be renewed before expiry.
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