Who Should Register for RERA?
Who Should Register for RERA?
1. Introduction
The Real Estate (Regulation and Development) Act, 2016 (RERA) mandates registration of real estate projects and agents to ensure transparency, accountability, and protection of homebuyers.
Registration ensures that the project complies with RERA standards, including approvals, timelines, disclosures, and financial transparency.
2. RERA Registration for Promoters / Developers
A. Definition of Promoter
Section 2(zk) of RERA defines “promoter” as:
“A person who constructs or develops a real estate project, including builders, developers, co-operative housing societies, and any other person responsible for development of a real estate project for sale or allotment.”
B. Who Must Register
Promoters of Residential / Commercial Projects
Any project where sale or allotment of units / plots is planned.
Includes projects with mixed-use development (residential + commercial).
Size / Threshold Criteria
Section 3(2) provides exemptions:
Projects ≤ 500 sq. meters or ≤ 8 units (varies by state) are exempt.
Projects Requiring Registration
Projects with more than 8 units or area > 500 sq. m must register before advertising or sale.
Promoter must provide: approvals, layout plans, project schedule, and financial details.
C. Mandatory Disclosures by Promoter
Section 4: Promoter must submit on RERA portal:
Project details (location, units, size)
Completion schedule / timelines
Approvals from local authorities
Land title status
Development plans / amenities
Financial statements and escrow account details
D. Consequences of Non-Registration
Section 59(1): Penalties for promoter
Up to 10% of project cost for non-registration.
Section 59(2): Daily fine until registration is obtained.
Non-registered promoters cannot advertise, market, sell, or book units.
Case Law:
Lodha Developers v. Buyer (MahaRERA, 2021)
Promoter advertised unregistered project.
Held: Penalty imposed; project must be registered before sale.
3. RERA Registration for Real Estate Agents
A. Definition of Agent
Section 2(zn) defines “real estate agent” as:
“A person who sells, buys, or negotiates on behalf of promoter or buyer for consideration.”
B. Who Must Register
Agents involved in:
Sale or purchase of residential / commercial units in RERA-registered projects
Marketing, brokering, or facilitating transactions
C. Mandatory Requirements
Section 9(1): Agent must register with state RERA authority.
Must provide:
PAN, identity proof, business registration
Details of promoters / projects associated with
D. Consequences of Non-Registration
Section 59(1): Penalty up to ₹10,000 per day until registration.
Unregistered agents cannot advertise or broker sales.
Case Law:
PVR Ltd. v. Delhi RERA
Real estate agent misrepresented timelines.
Held: Suspension and fine imposed; registration mandatory for operation.
4. RERA Registration for Ongoing Projects
Projects under construction before RERA enactment (pre-2016)
Section 3(2): Promoter must register ongoing projects exceeding threshold to comply with RERA.
Benefits of Registration for Promoter
Legally protects against future disputes.
Allows sale and booking of units.
Builds buyer confidence and transparency.
5. Practical Checklist: Who Should Register
| Entity | Requirement | Notes |
|---|---|---|
| Promoter / Developer | Mandatory | All new projects exceeding threshold; ongoing large projects |
| Real Estate Agent | Mandatory | Brokers units in RERA-registered projects |
| Small Projects (<500 sq.m or ≤8 units) | Exempt | State-specific exemptions apply |
| Standalone Plots / Raw Land | Generally exempt | Unless part of layout with development responsibility |
| Joint Development / Partnership Projects | Mandatory | Each promoter must comply individually |
6. Key Takeaways
Registration is mandatory for all promoters developing projects exceeding thresholds.
Real estate agents must register to legally sell or facilitate RERA projects.
Non-registration attracts penalties under Section 59 of RERA.
Exemptions exist for small projects, standalone plots, and minor layouts (state-specific).
Courts and RERA authorities enforce strict compliance to protect buyers and maintain transparency.
7. Illustrative Examples
Promoter of a 50-unit apartment project
Must register before marketing or selling units.
Agent facilitating sale of RERA-registered apartments
Must register with state RERA authority; cannot operate otherwise.
Promoter of 6-unit small project (<500 sq.m)
Exempt from registration; can sell units without RERA approval.
8. Conclusion
Promoters of large projects and real estate agents are required to register under RERA before advertising, selling, or brokering units.
Registration ensures legal protection, transparency, and buyer confidence.
Exemptions apply only to small projects, standalone plots, or very small layouts, depending on state rules.
Courts and RERA authorities strictly enforce registration, and non-compliance leads to financial penalties and legal liability.
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