RERA Registration: What It Actually Involves
The Real Estate (Regulation and Development) Act, 2016 fundamentally changed the landscape for builders, promoters, and real estate agents across India. Non-registration is not a technicality — under Section 59 a promoter who fails to register faces a penalty of up to 10% of the estimated project cost, and continued violation can lead to imprisonment of up to three years, a further fine of up to 10% of the estimated project cost, or both; under Section 62 an unregistered agent faces a penalty for every day the default continues, capped at 5% of the cost of the plot or apartment. At PNPC Global, our Chartered Accountants and regulatory specialists advise real estate developers and brokers on RERA registration and ongoing compliance.
What This Actually Covers
The Real Estate (Regulation and Development) Act, 2016 (RERA) is a central legislation enacted to regulate the Indian real estate sector, protect homebuyers' interests, and promote transparency and accountability among promoters and agents. It received Presidential assent on 25 March 2016; 59 of its sections came into force on 1 May 2016, and the remaining provisions — including project and agent registration (Sections 3 to 19) and the penalty provisions — came into force on 1 May 2017. Each state and union territory is required to establish its own Real Estate Regulatory Authority (Authority) and Real Estate Appellate Tribunal under the Act, which is why you see bodies like MahaRERA in Maharashtra, TNRERA in Tamil Nadu, HRERA in Haryana, K-RERA in Kerala, UP-RERA in Uttar Pradesh, and so forth.
For the full scope, current process and what PNPC includes, see the dedicated RERA Registration service page.
Signs This Applies to You
- Promoter or developer launching a new residential or commercial real estate project where the land area exceeds 500 square metres or the total number of proposed apartments exceeds 8 (inclusive of all phases) — Section 3(2)(a) sets these thresholds, but state authorities differ on whether a project within either limit alone is exempt, and states can lower the thresholds, so confirm the position with your state authority
- Ongoing project that had not received a completion certificate or occupancy certificate as on 1 May 2017 — these were required to register within three months of the Act coming into force; a belated application is still required and protects against ongoing penalty accrual
- Real estate agent, broker, or property consultant who facilitates purchase, sale, or leasing of any plot or apartment in a registered project — Section 9 requires a separate agent registration, typically valid for 5 years and renewable
- Developer or promoter who wishes to commence any advertising, marketing, booking, or launch activity for a project — you cannot legally launch a project, issue brochures, or collect booking advances before obtaining the RERA registration number
Before You Assume You Need This
- Projects where the total land area does not exceed 500 square metres or the total number of apartments proposed does not exceed 8 (inclusive of all phases) — Section 3(2)(a) exempts such projects, but authorities read the 'or' differently (MahaRERA, for example, exempts a project within either limit, while other readings require both), so confirm with your state authority before relying on the exemption
- Projects for which the promoter has received the completion certificate prior to 1 May 2017 — these are explicitly excluded from the mandatory registration requirement under Section 3(2)(b)
- Renovation, repair, or redevelopment work that does not involve marketing, advertising, selling, or new allotment of apartments — pure internal renovation without fresh sale is not a 'real estate project' under Section 2(zn)
Common Questions
What is RERA and why was it enacted?
RERA stands for the Real Estate (Regulation and Development) Act, 2016. It was enacted to address long-standing grievances in the Indian real estate sector — primarily project delays, fund diversion by developers, lack of transparency in project disclosures, and absence of a fast-track dispute resolution mechanism for homebuyers. The Act created independent state-level Regulatory Authorities and Appellate Tribunals, mandated project and agent registration, and introduced the 70% escrow obligation to prevent cross-project fund diversion.
Which projects are required to register under RERA?
Under Section 3 of RERA, every promoter must register a real estate project before advertising, marketing, booking, selling, or offering for sale any plot, apartment, or building unless the project falls within an exemption. Section 3(2)(a) exempts a project where the area of land proposed to be developed does not exceed 500 square metres or the number of apartments proposed does not exceed 8 (inclusive of all phases), and states may lower these thresholds. Authorities differ on whether a project within either limit alone qualifies (MahaRERA, for example, treats either as sufficient), so confirm the position with the relevant state authority.
Are ongoing projects that were not completed before May 2017 required to register?
Yes. Under the first proviso to Section 3(1), a project that was ongoing on 1 May 2017 and had not received a completion certificate had to apply for registration within three months, i.e. by 31 July 2017. Promoters who failed to register by that date remain in default and should file a belated application promptly, since penalty exposure under Section 59 continues while the default continues.
Getting This Right From the Start
Your project's RERA compliance starts before the first advertisement goes out. Speak with a PNPC real estate specialist today to ensure every stage — from registration to quarterly updates to escrow certification — is handled carefully and on time.
PNPC Global has advised Chennai, Bangalore and Hyderabad businesses since 1986. Explore the full Registrations & Licences practice for related services, or go straight to the RERA Registration page for specifics.
Rates, thresholds and filing dates are set by the relevant authority and revised periodically. Treat anything numeric here as "ask PNPC for the current figure," not as a quoted fact.