India Real Estate Dictionary — 1070+ Property & RERA Terms Explained

5 terms

Adjudicating Officer

RERA

An officer appointed under RERA, of the rank of a district judge, who decides the amount of compensation under Sections 12, 14, 18 and 19.

Legal basis: Section 71 of the RERA Act, 2016. The Supreme Court in Newtech Promoters (2021) held that refund and interest are decided by the Authority, while compensation is for the adjudicating officer.

Example & agent tip

Example: A buyer gets a refund order from the Authority and separately claims compensation before the adjudicating officer.

Agent tip: Use the right forum. Refund and interest go to the Authority; compensation goes to the adjudicating officer.

Related: RERA Authority Delay Interest

Adjudication of Compensation (Section 71)

RERA

The route for claiming compensation for matters such as false information, plan changes, structural defects and delay. The adjudicating officer hears the claim and may decide it within about 60 days.

Legal basis: Section 71 of the RERA Act, 2016.

Example & agent tip

Example: A buyer who suffered a loss from a defect files a claim before the adjudicating officer.

Agent tip: Compensation and refund are separate remedies, with different forums.

Advertisement Compliance

RERA

Ads for registered projects must be truthful and match the registration, and state rules usually require the RERA registration number to be shown. Misleading ads can lead to penalties and refund claims, and agents are responsible for what they publish too.

Legal basis: Section 12 of the RERA Act, 2016; Section 2(b) defines an advertisement.

Example & agent tip

Example: An agent in Zirakpur posts a flat as "RERA approved" without the number. The Authority notices and issues a notice.

Agent tip: Put the registration number on each ad and keep a copy of the claims you made. Check your state's current advertising rules.

Allottee

RERA

A person to whom a plot, apartment or building has been allotted, sold or otherwise transferred by the promoter. It includes a later buyer, but not a tenant.

Legal basis: Defined in Section 2(d) of the RERA Act, 2016.

Example & agent tip

Example: A buyer who books a flat directly from the developer is an allottee. So is one who buys it from the first buyer.

Agent tip: Allottees have rights to information, refund, interest and timely possession.

Association of Allottees

RERA

A body formed by the buyers of a project to manage common areas and deal with the promoter. The promoter must hand over common areas to it.

Legal basis: RERA Act, 2016, Sections 11(4)(e) and 17.

Example & agent tip

Example: Residents form an association of allottees, which then takes over the common areas.

Agent tip: Encourage new buyers to join early, as the association can file a complaint for the whole project.

1 terms

Buyer

RERA

In everyday use, a person who buys property. Under RERA the formal term is allottee.

Example & agent tip

Example: A buyer is an allottee once the promoter allots a unit.

Agent tip: Use the term allottee in complaints and legal documents.

Related: Allottee Promoter

6 terms

Central Advisory Council

RERA

A body the Central Government may set up under the Act to advise on putting it into effect, on major policy questions and on consumer protection. It is chaired by the Union Housing Minister and includes government, regulator and industry representatives.

Legal basis: Sections 41 and 42 of the RERA Act, 2016.

Example & agent tip

Example: The Council reviews how states are applying the Act and recommends that rules on project disclosure be made uniform.

Agent tip: It advises the Centre and has no power to decide individual complaints. For a dispute, go to the state Authority.

Related: MoHUA RERA RERA Rules

Competent Authority (RERA)

RERA

The body that can approve plans, issue commencement and completion certificates, such as a development authority or municipal corporation. RERA registration does not replace these approvals, and the competent authority's sanctions must be valid.

Legal basis: Defined in Section 2 of the RERA Act, 2016.

Example & agent tip

Example: A promoter shows a RERA number but the plan sanction is from the wrong body. The buyer finds the gap by asking for the approvals list.

Agent tip: Check both RERA registration and the plan sanction from the proper local authority.

Complaint Forms (Form M and Form N)

RERA

The Centre's model rules prescribe forms for complaints: one for the Authority and one for the adjudicating officer, which deals with compensation. Many states have their own forms or online filing, so use the state portal.

Legal basis: Rules made under the RERA Act, 2016; form letters follow the Central model rules.

Example & agent tip

Example: A Mohali buyer files a refund complaint on the portal, and a second compensation complaint goes to the adjudicating officer.

Agent tip: File the right form with the right body. A refund and interest claim and a compensation claim may go to different forums.

Composition of Appellate Tribunal (Sections 45-46)

RERA

The Tribunal has a Chairperson and at least two whole-time Members, one judicial and one technical or administrative. The Chairperson must be a sitting or former High Court Judge, and the other members are chosen by a selection committee with the High Court Chief Justice.

Legal basis: Sections 45 and 46 of the RERA Act, 2016.

Example & agent tip

Example: A state sets up a three-member Tribunal led by a retired High Court judge, with a former district judge and a retired housing official.

Agent tip: The Tribunal is a higher forum than the Authority. Complex or high-value disputes are better argued with an advocate.

Composition of RERA Authority (Sections 20-22)

RERA

A state or Union Territory Authority has a Chairperson and at least two whole-time Members, chosen by the government on the recommendation of a Selection Committee. The Act sets minimum experience of 20 years for the Chairperson and 15 years for Members.

Legal basis: Sections 20 to 22 of the RERA Act, 2016.

Example & agent tip

Example: A state notifies a three-member Authority, with a former housing secretary as Chairperson and two other experienced members. All three sit on complaints.

Agent tip: Orders can differ in tone between authorities because members differ. Read recent orders on the state portal before predicting how your complaint will fare.

Covid-19 Force Majeure Extension

RERA

In 2020, the Centre and many state regulators treated Covid-19 as a force majeure event and extended registration and completion dates for ongoing projects. The extension period, often several months, was set by each regulator's order and did not erase a promoter's duty to the buyer.

Example & agent tip

Example: A Kharar project with a June 2020 deadline received a blanket extension from the state Authority, and the registration was updated.

Agent tip: For a delayed project from that period, read the state order. It may affect the interest claim.

5 terms

Deemed Registration

RERA

A project is treated as registered if the Authority neither grants nor rejects the application within 30 days. The Authority must then issue the registration number and login within seven days after that period. The promoter still has to be able to show a complete application.

Legal basis: Section 5(2) of the RERA Act, 2016.

Example & agent tip

Example: A Panchkula developer hears nothing for 30 days after filing, so the project is deemed registered and a number and login are issued a week later.

Agent tip: A deemed registration is still a registration, but check the portal for the actual number and uploaded documents before accepting bookings. Do not rely on a promoter's word that the 30 days have lapsed.

Defaulter Promoters List

RERA

The Authority must keep a public database of promoters who have defaulted, with their photographs, and a similar record of agents whose registration was rejected or revoked. It helps buyers spot promoters with a poor compliance record.

Legal basis: Section 34 of the RERA Act, 2016.

Example & agent tip

Example: A buyer in Kharar finds a promoter's photograph and default entry on the portal and drops that builder from the shortlist.

Agent tip: Search the developer's name and group companies, not just the project name. Defaults can sit under a different entity.

Defective Title Compensation (Section 18(2))

RERA

If a buyer suffers loss because the promoter's title to the land was defective, the promoter must compensate the buyer. The claim is not barred by limitation periods in other laws, so it can be raised even years after purchase.

Legal basis: Section 18(2) of the RERA Act, 2016.

Example & agent tip

Example: A buyer in Zirakpur discovers years later that a disputed claim on the land affects his flat, and claims compensation from the promoter.

Agent tip: Run a title search before buying. A claim is easier to avoid than to win.

Delay Interest

RERA

Also called: Delay in Possession, Delay Compensation

The interest payable by a promoter to an allottee for delayed possession. In most states it is the State Bank of India's highest MCLR plus 2%, as an annual rate. The same rate applies if an allottee delays payment.

Legal basis: State RERA rules made under Section 18 and Section 2(za) of the Act. A few states use the prime lending rate instead.

Example & agent tip

Example: A buyer who paid ₹40 lakh gets interest on that amount for each month of delay at the rule's rate.

Agent tip: Look up the rule in your state. The rule number differs among states.

Duty to Take Possession (Section 19(10))

RERA

A buyer must take physical possession within two months of the occupancy certificate being issued for the unit. A buyer who delays may be asked to pay holding costs or maintenance.

Legal basis: Section 19(10) of the RERA Act, 2016.

Example & agent tip

Example: An occupancy certificate is issued on 1 March for a Mohali flat. The buyer must take possession by the end of April.

Agent tip: Schedule inspection quickly after the notice of possession and record any snag in writing.

3 terms

Engineer, Architect and CA Certificates

RERA

Before a promoter withdraws money from the project's separate account, the withdrawal must be in proportion to work done, certified by an engineer, an architect and a chartered accountant. This ties spending to construction progress and protects buyers' money.

Legal basis: Section 4(2)(l)(D) of the RERA Act, 2016.

Example & agent tip

Example: A Panchkula promoter wants to withdraw funds after the second slab is cast. The three professionals certify the percentage completed, and only a matching share is released.

Agent tip: Ask a promoter whether recent withdrawals were certified. A project with regular certificates usually has better financial discipline.

Escrow Account

RERA

Also called: RERA Account, 70% Rule

A separate bank account in which the promoter must keep 70% of the amounts realised from allottees. It is used only for construction and land costs, and withdrawals are certified by an engineer, an architect and a chartered accountant in proportion to the work done.

Legal basis: Section 4(2)(l)(D) of the RERA Act, 2016.

Example & agent tip

Example: A developer collects ₹10 crore from buyers and must deposit ₹7 crore in the project account.

Agent tip: This is 70% of the amounts received from allottees, not 70% of the project cost.

Extension of Registration

RERA

The authority's grant of more time to complete a project, usually when the promoter asks for it. Only force majeure extensions under Section 6 are within the Act's one-year limit.

Example & agent tip

Example: A promoter applies for an extension and the authority grants it for a stated period.

Agent tip: Buyers' rights under Section 18 are not wiped out because the authority has extended the registration.

Related: Section 6 (RERA) Force Majeure

1 terms

Grading of Projects and Promoters

RERA

The Act lets the Authority recommend a system of rating promoters and projects, for example on delivery record or compliance. Whether a state publishes grades depends on its own rules and practice, so a buyer should not assume every portal shows one.

Legal basis: Section 32 of the RERA Act, 2016.

Example & agent tip

Example: A state portal publishes a compliance score for each registered project, and a buyer compares two Kharar projects before booking.

Agent tip: Use any official grade as one input beside site visits, approvals and delivery history. Never present a grade as a guarantee.

1 terms

Interest Payable by Allottee (Section 19(7))

RERA

A buyer who delays a payment due under the agreement must pay interest at the rate set by the state rules. The rate is the same one the promoter pays on delays, so the interest rule works both ways.

Legal basis: Section 19(7) of the RERA Act, 2016; Section 2(za).

Example & agent tip

Example: A buyer pays an instalment 40 days late in Kharar and is charged interest at the same rate the promoter would owe on a delay.

Agent tip: Check the agreement for any higher late-payment rate. The RERA rate is the benchmark.

1 terms

Model Agreement for Sale

RERA

The Act requires the agreement for sale to follow the prescribed form. The Centre's model rules include a model format that states adapt. It sets out standard terms, such as area, payment plan, possession date and defect liability, so builders cannot use one-sided clauses.

Legal basis: Section 13(2) of the RERA Act, 2016.

Example & agent tip

Example: A Panchkula builder is told by the Authority to align his agreement with the state format, including the possession date clause.

Agent tip: Compare the builder's draft with your state's prescribed format and flag extra clauses before signing.

1 terms

Ongoing Project

RERA

A project that was under development when RERA's registration provisions began and had not yet received a completion certificate. Such projects had to register.

Legal basis: First proviso to Section 3(1) of the RERA Act, 2016.

Example & agent tip

Example: A tower started in 2015, without a completion certificate by May 2017, had to be registered.

Agent tip: A project that says it is "exempt as ongoing" needs checking. Ask for its completion certificate.

7 terms

Penalty for Agents (Section 62)

RERA

The penalty for an agent who breaks Section 9 or 10: ₹10,000 for each day of default, up to a total of 5% of the cost of the plot, apartment or building for which the agent facilitated the sale.

Legal basis: Section 62 of the RERA Act, 2016. Sections 65 and 66 cover agents who do not obey orders of the authority or tribunal.

Example & agent tip

Example: An agent sells a unit without a valid registration for 20 days. The penalty can run per day, up to the cap.

Agent tip: Keep your registration valid and renewed.

Penalty for Allottees (Sections 67 and 68)

RERA

Buyers are also covered. An allottee who fails to comply with the Authority's orders can face a penalty up to 5% of the unit cost. Disobeying the Tribunal's orders can bring up to one year in prison, a fine up to 10%, or both.

Legal basis: Sections 67 and 68 of the RERA Act, 2016.

Example & agent tip

Example: An allottee refuses to pay the dues the Authority ordered and is penalised under the Act.

Agent tip: Buyers should treat the Authority's directions as binding too. Pay as ordered, or appeal on time.

Penalty for Non-registration (Section 59)

RERA

The penalty for a promoter who does not register a project under Section 3: up to 10% of the estimated project cost, and if the default continues, imprisonment up to three years, a further fine of up to 10%, or both.

Legal basis: Section 59 of the RERA Act, 2016.

Example & agent tip

Example: A developer sells flats in a project with no registration. The authority can penalise him.

Agent tip: Do not market unregistered projects.

Phase-wise Registration

RERA

When a large project is built in phases, each phase is treated as a standalone project and must be registered separately. Each phase gets its own number, timeline and separate bank account, so one phase's delay or default does not automatically extend to another.

Legal basis: Explanation to Section 3(1) of the RERA Act, 2016.

Example & agent tip

Example: A township near Lalru launches Phase 1 with 200 plots and Phase 2 six months later. Each phase carries a different RERA number and completion date.

Agent tip: Quote the number of the phase a buyer is booking in, not the township's headline brand. Check that the plot or flat belongs to the registered phase.

Possession

RERA

Also called: Handover, Handing Over

Physical handover of a completed unit to the buyer. It is separate from registration of the sale deed. The buyer should take it only after an occupancy certificate is issued.

Legal basis: Section 19(10) of the RERA Act, 2016 requires the allottee to take possession within two months of the occupancy certificate.

Example & agent tip

Example: A buyer inspects the flat, signs the possession letter and receives the keys.

Agent tip: Do not accept possession without an occupancy certificate and a snag list.

Possession Date

RERA

The date for giving possession of a unit, as stated in the agreement for sale. If the promoter misses it, the allottee has rights under Section 18.

Example & agent tip

Example: An agreement states possession by 31 December 2026 with a six-month grace period.

Agent tip: Check any "grace period" clause and any extension granted by the authority.

Promoter

RERA

The person or company that develops or sells a real estate project. It includes builders, developers, development authorities when they sell, and anyone who constructs and sells units.

Legal basis: Defined in Section 2(zk) of the RERA Act, 2016.

Example & agent tip

Example: A developer who builds a 200-flat project and sells it is a promoter under RERA.

Agent tip: Many obligations in the Act fall on the promoter. Know them when you advise buyers.

1 terms

Quarterly Update

RERA

Also called: Quarterly Progress Report, QPR

A report the promoter must publish on the project's web page on the authority's portal every quarter, covering apartments booked, approvals and the stage of work.

Legal basis: Section 11(1) of the RERA Act, 2016, and state rules.

Example & agent tip

Example: A buyer reads the project's quarterly update and sees that the 8th floor slab is complete.

Agent tip: Compare the quarterly progress with the site and the demand letters.

12 terms

Real Estate Project

RERA

Also called: Project

A development of land or buildings for sale, including the common areas and any infrastructure, as defined in the Act. It covers apartments, plots, commercial units and mixed-use schemes.

Legal basis: Defined in Section 2(zn) of the RERA Act, 2016.

Example & agent tip

Example: A plotted colony of 50 plots on 5 acres is a real estate project.

Agent tip: Check whether the project meets the registration thresholds, and that each phase is registered.

Recovery as Arrears of Land Revenue

RERA

A route for enforcing money orders without a separate civil suit. The Authority sends a recovery certificate to the revenue authorities, who may attach and sell the defaulter's property to realise the dues as they would for unpaid land revenue.

Legal basis: Section 40(1) of the RERA Act, 2016.

Example & agent tip

Example: A promoter owes a Kharar buyer a refund plus interest. After the order goes unpaid, the district recovery officer attaches the promoter's unsold flats.

Agent tip: Give the Authority accurate details of the promoter's known assets. It speeds up recovery.

Registration Forms (Form A, B and C)

RERA

Under the Centre's model rules, the promoter applies in Form A, signs a sworn declaration in Form B, and receives the registration certificate in Form C. States have their own rules and sometimes their own form numbers, so the portal's current format governs.

Legal basis: Rules made under Section 84 of the RERA Act, 2016; form letters follow the Central model rules.

Example & agent tip

Example: A Zirakpur promoter uploads the application, the notarised declaration and a list of approvals on the state portal and later downloads the certificate.

Agent tip: When comparing projects across states, do not assume the same form letters. Use the state portal's own labels.

RERA

The Real Estate (Regulation and Development) Act, 2016: the central law that regulates the sale of plots, apartments and buildings in registered projects. It created a regulator in each state, requires projects and agents to register, and gives buyers defined rights.

Legal basis: Assented to on 25 March 2016. Most sections were in force from 1 May 2016, and the registration provisions (Section 3 and others) from 1 May 2017.

Example & agent tip

Example: A buyer in Zirakpur checks the project on the Punjab RERA portal before paying the booking amount, as RERA allows.

Agent tip: RERA is a central Act, but each state notifies its own rules and runs its own authority. Fees and procedures differ by state.

RERA Appellate Tribunal

RERA

Also called: Appellate Tribunal, RERA Appellant Tribunal

The forum that hears appeals against orders of the RERA authority or the adjudicating officer. A promoter who appeals must first deposit at least 30% of any penalty, or the full amount payable to the allottee, as the Act provides.

Legal basis: Sections 43 and 44 of the RERA Act, 2016. Further appeal lies to the High Court under Section 58.

Example & agent tip

Example: A builder appeals against a refund order and must deposit the amount due to the buyer.

Agent tip: Mention the deposit rule to buyers who worry that appeals will delay refunds.

RERA Authority

RERA

Also called: Authority, Regulatory Authority

The state or Union Territory regulator set up under the Act to register projects and agents, hear complaints and enforce the law.

Legal basis: Section 20 of the RERA Act, 2016.

Example & agent tip

Example: A buyer files a complaint with the state RERA authority about a delayed project.

Agent tip: Know which authority covers the project. Each state has its own portal.

RERA Registration Number

RERA

Also called: RERA ID, RERA Number

A unique number given by the state authority to a registered project or agent. It lets buyers verify the registration on the authority's portal, and state rules require it in advertisements.

Example & agent tip

Example: A flyer for a project in Panchkula must show its RERA number, which the buyer then checks on the portal.

Agent tip: Never take a booking without checking the number on the official portal.

RERA Rules

RERA

The rules made by each state or Union Territory under Section 84 of the Act. They set forms, fees, interest rates, agent registration and procedures. The central Model Rules are only a template.

Legal basis: Section 84 of the RERA Act, 2016.

Example & agent tip

Example: One state sets agent registration at ₹10,000 for individuals, while another sets a different amount.

Agent tip: Always read the rules of the state in which you work.

Related: RERA Real Estate Agent

RERA vs Consumer Protection Act

RERA

A buyer can approach the RERA Authority or a consumer commission for a delayed or defective home. The Supreme Court held in 2020 that RERA does not bar consumer remedies, so the buyer chooses the forum, but should not run both for the same relief.

Legal basis: Sections 79 and 88 of the RERA Act, 2016; Imperia Structures Ltd v Anil Patni (Supreme Court, 2020).

Example & agent tip

Example: A buyer of a delayed flat in Panchkula files with the RERA Authority for refund, while a neighbour approaches the consumer commission for the same relief.

Agent tip: Compare time, cost and the relief each forum can grant. Do not file for the same relief in two forums.

RERA vs Insolvency

RERA

If a builder is in insolvency, the process under the Insolvency and Bankruptcy Code can pause actions against the company. Homebuyers are treated as financial creditors, and a group threshold applies for starting a case against a builder. A RERA order may be hard to enforce during this period.

Legal basis: Insolvency and Bankruptcy Code, 2016, as amended in 2018 and 2020.

Example & agent tip

Example: A Zirakpur builder enters insolvency, and a buyer with a RERA refund order has to file a claim with the resolution professional.

Agent tip: Check whether the builder faces insolvency proceedings before suing. Insolvency can change the route to recover money.

Revocation of Registration

RERA

The authority's power to cancel a project's registration for default, unfair practices or fraud, after a notice of at least 30 days. The authority may then arrange completion of the project, with the allottees' association having first right to take it up.

Legal basis: Sections 7 and 8 of the RERA Act, 2016.

Example & agent tip

Example: A promoter diverts escrow funds, and the authority revokes the registration and appoints someone to complete the project.

Agent tip: Check the authority's orders and the project's status on the portal.

Rule-making and Regulations (Sections 84 and 85)

RERA

The Act gives the government power to make rules and the Authority power to make regulations. This is why procedures, forms, fees and interest rates differ across states, even though the parent Act is common.

Legal basis: Sections 84 and 85 of the RERA Act, 2016.

Example & agent tip

Example: Two states set different complaint fees and forms, so a buyer in Mohali and one in Gurugram follow different procedures.

Agent tip: Always read your state's rules and regulations. Do not apply another state's procedure.

43 terms

Section 10 (RERA)

RERA

The section that sets the duties of registered agents: not to facilitate the sale of unregistered projects, to keep books and records, not to indulge in unfair practices, and to give buyers the documents and information they are entitled to.

Legal basis: Section 10 of the RERA Act, 2016.

Example & agent tip

Example: An agent who brings a buyer to an unregistered project breaks Section 10.

Agent tip: Verify project registration before you show a project. It protects you and the buyer.

Section 11 (RERA)

RERA

The section that lists the promoter's duties, including a project web page, quarterly updates, handing over documents and taking responsibility until common areas are transferred.

Legal basis: Section 11 of the RERA Act, 2016.

Example & agent tip

Example: A promoter updates the project page every quarter with the booking status and approvals.

Agent tip: Use the project's web page as a source for buyer checks.

Related: Quarterly Update Promoter

Section 12 (RERA)

RERA

The section that makes a promoter liable to compensate for loss caused by false statements in an advertisement or prospectus. A buyer who withdraws is entitled to a refund with interest and compensation.

Legal basis: Section 12 of the RERA Act, 2016.

Example & agent tip

Example: A brochure promises a swimming pool that is never built. The buyer can claim under Section 12.

Agent tip: Keep copies of brochures and ads.

Related: Mis-selling Promoter Amenities

Section 13 (RERA)

RERA

The section that stops a promoter from taking more than 10% of the cost as an advance or application fee without first signing a registered agreement for sale.

Legal basis: Section 13 of the RERA Act, 2016.

Example & agent tip

Example: A developer asks for 25% as booking amount before an agreement. This is above the limit.

Agent tip: Warn buyers about large advances before the agreement.

Section 14 (RERA)

RERA

The section that requires the promoter to build as per the sanctioned plans. Changes need allottees' consent, and the promoter must repair structural defects reported within five years of possession within 30 days.

Legal basis: Section 14 of the RERA Act, 2016.

Example & agent tip

Example: A promoter wants to add a floor not in the sanctioned plan and needs the required consent.

Agent tip: Check that the building follows the approved plan.

Section 15 (RERA)

RERA

The section that bars a promoter from transferring the majority rights and liabilities of a project to a third party without the written consent of two-thirds of the allottees and the authority's prior approval.

Legal basis: Section 15 of the RERA Act, 2016.

Example & agent tip

Example: A developer wants to hand a stalled project to another company and must first get allottee consent.

Agent tip: Watch for takeover notices in your clients' projects.

Related: Promoter Allottee

Section 16 (RERA)

RERA

The section that requires the promoter to take out insurance against defects in the title of the land and for construction risks, as notified.

Legal basis: Section 16 of the RERA Act, 2016.

Example & agent tip

Example: A project buys title insurance, as the rules require.

Agent tip: Ask whether the insurance requirement has been notified in your state.

Related: Title Insurance Promoter

Section 17 (RERA)

RERA

The section that requires the promoter to execute a registered conveyance deed in favour of the allottee within three months of the occupancy certificate, where no local law says otherwise. It also requires handing over the common areas to the association.

Legal basis: Section 17 of the RERA Act, 2016.

Example & agent tip

Example: A promoter takes possession-linked payment but delays the conveyance for a year. The buyer complains.

Agent tip: Chase the conveyance after possession.

Section 18 (RERA)

RERA

The section that gives an allottee a remedy for delay. If the promoter fails to give possession by the agreed date, the allottee can withdraw and get a refund with interest and compensation, or stay and get interest for every month of delay until possession.

Legal basis: Section 18 of the RERA Act, 2016. In Newtech Promoters v State of UP (2021) the Supreme Court held that the allottee's right to a refund is unqualified.

Example & agent tip

Example: A flat due in March is not delivered. The buyer can ask for a refund with interest, or stay in the project and get monthly interest.

Agent tip: Explain both options to clients. Interest is at the SBI highest MCLR plus 2%, as per state rules.

Section 19 (RERA)

RERA

The section that lists the rights and duties of an allottee: to know project details, to get possession, to claim a refund, and to pay on time and take possession within two months of the occupancy certificate.

Legal basis: Section 19 of the RERA Act, 2016.

Example & agent tip

Example: A buyer reads the sanctioned plan and the payment schedule of the project on the portal.

Agent tip: Remind buyers that they also owe duties: timely payment and taking possession.

Related: Allottee Section 18 (RERA)

Section 3 (RERA)

RERA

The section that makes registration compulsory before a promoter can advertise, market, book, sell or offer a project. Registration is not needed if the land does not exceed 500 sq m or the project has no more than eight apartments (including all phases), if a completion certificate was received before the Act, or for renovation without new sales. Each phase is registered as a separate project.

Legal basis: Section 3 of the RERA Act, 2016. States may lower the thresholds.

Example & agent tip

Example: A builder plans 12 flats on a 900 sq m plot. He exceeds both limits, 500 sq m and eight apartments, so registration is required. Had the plot been 400 sq m, the Act would have exempted it unless the state has lowered the limit.

Agent tip: Under the Act, a project is exempt if it meets either test, so registration is needed only when both limits are crossed. Check your state's rules, because some states have lowered the limits.

Section 31 (RERA)

RERA

The section that lets any aggrieved person file a complaint with the authority or the adjudicating officer against a promoter, allottee or agent for a breach of the Act.

Legal basis: Section 31 of the RERA Act, 2016.

Example & agent tip

Example: A buyer files a complaint on the state portal against a builder for failure to deliver.

Agent tip: Complaint forms and fees vary by state.

Section 32 (RERA)

RERA

The section on the Authority's role in developing the real estate sector. It lets the Authority recommend measures to governments, such as single-window approvals, grievance redress against competent authorities, grading of projects and promoters, conciliation of disputes and digitising land records.

Legal basis: Section 32 of the RERA Act, 2016.

Example & agent tip

Example: An Authority suggests to its state that approvals for housing projects be time-bound through one window, to cut the delays that cause late handovers.

Agent tip: These are recommendations, not binding orders, so do not promise buyers a faster approval because of this section.

Section 34 (RERA)

RERA

The section listing the Authority's core functions. These include registering projects and agents, running a public website, keeping lists of defaulting promoters and agents, fixing standard fees and ensuring compliance with the Act, rules, regulations and orders.

Legal basis: Section 34 of the RERA Act, 2016.

Example & agent tip

Example: A buyer in Mohali searches the state RERA website for a project's registration and finds the promoter's earlier defaults listed.

Agent tip: Use the Authority's website as your first check on any project and any agent. It is the official, public source.

Section 35 (RERA)

RERA

The section giving the Authority power to call for information and investigate. On a complaint or on its own motion, it can order a promoter, allottee or agent to furnish information, appoint someone to inquire, and use civil court powers such as summoning people and requiring documents.

Legal basis: Section 35 of the RERA Act, 2016.

Example & agent tip

Example: After several complaints about a Zirakpur project, the Authority orders the promoter to produce bank statements and sanction papers and appoints an inspector.

Agent tip: When filing a complaint, name the specific documents you want examined. Clear requests make it easier for the Authority to use this power.

Section 36 (RERA)

RERA

The section on interim orders. While an inquiry is on, the Authority can restrain a promoter, allottee or agent from continuing an act that appears to contravene the Act, until the inquiry ends or further orders. It may do so without notice if it considers that necessary.

Legal basis: Section 36 of the RERA Act, 2016.

Example & agent tip

Example: During an inquiry the Authority stops a promoter from taking new bookings in a Panchkula project until a funds-diversion allegation is examined.

Agent tip: If a project is under an interim order, advise clients to hold off on new payments until the Authority's final decision.

Section 37 (RERA)

RERA

The section that lets the Authority issue directions to promoters, allottees and real estate agents when needed to discharge its functions. These directions are binding on those concerned and are enforceable like the Authority's other orders.

Legal basis: Section 37 of the RERA Act, 2016.

Example & agent tip

Example: The Authority directs all promoters in a state to upload quarterly progress reports by a fixed date, and defaulters face action.

Agent tip: Check the Authority's directions page now and then. New compliance directions can change what agents must show in ads and papers.

Section 38 (RERA)

RERA

The section on the Authority's powers to impose penalty or interest on promoters, allottees and agents. It must follow natural justice, can regulate its own procedure, and may refer to the Competition Commission of India any matter that appreciably affects competition or abuses market power.

Legal basis: Section 38 of the RERA Act, 2016.

Example & agent tip

Example: The Authority imposes a penalty on a promoter for filing false data, after giving a hearing and recording its reasons.

Agent tip: Orders can be challenged, so keep every notice and reply. A clear paper trail matters if you appear before the Authority.

Section 39 (RERA)

RERA

The section on rectifying orders. Within two years of an order, the Authority can correct a mistake apparent from the record, and must do so if the parties point it out. It cannot amend the substance of an order or an order that is under appeal.

Legal basis: Section 39 of the RERA Act, 2016.

Example & agent tip

Example: An order lists the wrong carpet area in a Mohali buyer's refund calculation. The buyer applies and the Authority corrects the clerical error.

Agent tip: Read each order closely on receipt. Raise clerical errors early rather than waiting for the appeal period to pass.

Section 4 (RERA)

RERA

The section that sets out what a promoter must file for registration, including the sanctioned plan, project details and a declaration that 70% of the amounts realised from allottees will be kept in a separate bank account.

Legal basis: Section 4 of the RERA Act, 2016, particularly Section 4(2)(l)(D).

Example & agent tip

Example: A promoter's application includes a layout plan, a schedule of work and a bank account declaration.

Agent tip: Read the registration details on the state portal, including the promoter's declarations.

Section 40 (RERA)

RERA

The section on recovery and enforcement. Unpaid interest, penalty or compensation can be recovered as arrears of land revenue, so the revenue machinery can be used against a defaulting promoter, and other non-compliance with an order is enforced in the prescribed manner.

Legal basis: Section 40 of the RERA Act, 2016.

Example & agent tip

Example: A promoter ignores an order to refund a buyer with interest, so the Authority sends a recovery certificate to the district collector, who collects it like unpaid land revenue.

Agent tip: After winning an order, follow up on the recovery process. A good order is of little use until the money actually comes in.

Section 43 (RERA)

RERA

The section that provides for the Real Estate Appellate Tribunal. A promoter who wants to appeal an Authority or adjudicating officer's order must first deposit at least 30% of the penalty, or the full amount payable to the allottee, including interest and compensation.

Legal basis: Section 43 of the RERA Act, 2016.

Example & agent tip

Example: A promoter ordered to refund Rs 40 lakh to a buyer must deposit that sum with the Tribunal before the appeal is heard.

Agent tip: If you are a buyer who has won, the pre-deposit rule helps ensure money is available. Ask the Tribunal about releasing the deposit.

Section 44 (RERA)

RERA

The section on appeals to the Tribunal. Any aggrieved person, the government or a competent authority can appeal within 60 days of receiving the order, and the Tribunal can admit a late appeal for sufficient cause. It aims to dispose of appeals within 60 days.

Legal basis: Section 44 of the RERA Act, 2016.

Example & agent tip

Example: A buyer unhappy with a compensation order files an appeal on day 55 and the Tribunal admits it.

Agent tip: Note the date of receiving the order and calendar the 60-day limit. Late appeals need a reason.

Section 5 (RERA)

RERA

The section that sets how the regulator must decide a registration application. The Authority has 30 days to grant or reject it, must give the applicant a hearing before rejecting, and must record reasons. Registration then runs for the completion period the promoter declared.

Legal basis: Section 5 of the RERA Act, 2016.

Example & agent tip

Example: A Mohali promoter files for a 120-unit project in March. The Authority finds a missing sanction and, after a hearing, asks for the document instead of rejecting outright.

Agent tip: Agents should not market a project as registered just because an application is pending. Ask for the certificate and number, and confirm the registration period covers the promised possession date.

Section 53 (RERA)

RERA

The section on the Tribunal's powers. It is not bound by the Civil Procedure Code or the Evidence Act but follows natural justice. It has civil court powers such as summoning witnesses, requiring documents and taking evidence on affidavit, and may decide ex parte.

Legal basis: Section 53 of the RERA Act, 2016.

Example & agent tip

Example: A promoter skips three Tribunal hearings, and the Tribunal decides the appeal in the promoter's absence.

Agent tip: Do not skip a Tribunal date. A missed hearing can mean an ex parte order.

Section 56 (RERA)

RERA

The section on legal representation before the Tribunal. An applicant or appellant may appear in person or authorise a chartered accountant, company secretary, cost accountant, legal practitioner or officer to present the case.

Legal basis: Section 56 of the RERA Act, 2016.

Example & agent tip

Example: A homebuyer in Panchkula authorises her chartered accountant cousin to argue her refund appeal.

Agent tip: For complex matters involving law and money, a qualified representative saves time. Check what your state's rules allow for the Authority stage.

Section 57 (RERA)

RERA

The section that makes Tribunal orders executable like a civil court decree. The Tribunal can execute its orders with civil court powers or send them to a civil court with local jurisdiction for execution.

Legal basis: Section 57 of the RERA Act, 2016.

Example & agent tip

Example: A Tribunal orders a promoter to hand over possession. When the promoter does not comply, the order is transmitted to the district court for execution.

Agent tip: Ask the Tribunal's registry which execution route it uses in your state and keep copies of the order handy.

Section 58 (RERA)

RERA

The section on appeals from the Tribunal to the High Court. The appeal must be filed within 60 days of communication of the decision, on grounds mentioned in the Civil Procedure Code's Section 100, and goes to the High Court of the state where the project is located.

Legal basis: Section 58 of the RERA Act, 2016.

Example & agent tip

Example: A promoter loses before the Tribunal on a Zirakpur project and files an appeal before the Punjab and Haryana High Court within 60 days.

Agent tip: High Court appeals are for questions of law. They are not a rehearing of the facts.

Section 6 (RERA)

RERA

The section that allows the authority to extend a project's registration for force majeure, without default by the promoter, by up to one year in total.

Legal basis: Section 6 of the RERA Act, 2016.

Example & agent tip

Example: A flood stops work for months. The authority extends the registration by six months.

Agent tip: The extension does not cancel the allottee's rights unless the authority also extends the date in the agreement. Read the order.

Related: Force Majeure Possession Date

Section 60 (RERA)

RERA

The section that penalises a promoter for contravening the registration application provisions of Section 4, including giving false or incorrect information. The Authority can impose a penalty up to 5% of the estimated project cost.

Legal basis: Section 60 of the RERA Act, 2016.

Example & agent tip

Example: A promoter lists approvals he does not hold in the application. The Authority fines him a share of the estimated cost.

Agent tip: Agents should cross-check the approvals on a project's registration page against the municipal sanction.

Section 61 (RERA)

RERA

The section that penalises a promoter who contravenes provisions of the Act other than Sections 3 and 4. The Authority can impose a penalty up to 5% of the estimated project cost, set in each case by the Authority.

Legal basis: Section 61 of the RERA Act, 2016.

Example & agent tip

Example: A promoter in Mohali takes more than the permitted advance without a registered agreement and is fined under this section.

Agent tip: Know the common promoter breaches, such as taking over 10% advance without an agreement, as they support complaints.

Section 63 (RERA)

RERA

The section that penalises a promoter who fails to comply with the Authority's orders or directions. A penalty is charged for every day the default continues, and the total can reach up to 5% of the estimated project cost.

Legal basis: Section 63 of the RERA Act, 2016.

Example & agent tip

Example: A promoter ignores a direction to upload quarterly updates. A daily penalty builds up until the data is uploaded.

Agent tip: If a promoter is ignoring an order, ask the Authority to apply the compliance provisions and recover the penalty.

Section 64 (RERA)

RERA

The section on a promoter who fails to comply with the Appellate Tribunal's orders. It provides for imprisonment of up to three years, or a daily fine that can reach up to 10% of the estimated project cost, or both.

Legal basis: Section 64 of the RERA Act, 2016.

Example & agent tip

Example: A promoter refuses to follow a Tribunal order to refund buyers. A complaint is filed seeking prosecution.

Agent tip: This is the strongest penalty in the Act for promoters. It shows why Tribunal orders must be taken seriously.

Section 65 (RERA)

RERA

The section that penalises a real estate agent who fails to comply with the Authority's orders or directions. A daily penalty applies while the default continues and can total up to 5% of the cost of the plot, apartment or building involved.

Legal basis: Section 65 of the RERA Act, 2016.

Example & agent tip

Example: An agent in Panchkula keeps advertising after the Authority orders him to stop. Daily penalties are imposed until he complies.

Agent tip: As an agent, treat every Authority direction as binding and reply on time. Delay is expensive.

Section 69 (RERA)

RERA

The section on offences by companies. When a company commits an offence, those in charge of its business at the time can be held guilty, unless they prove the offence happened without their knowledge or that they used due care. Directors can be liable if the offence was with their consent or neglect.

Legal basis: Section 69 of the RERA Act, 2016.

Example & agent tip

Example: A developer company is prosecuted, and its managing director is named as the person in charge.

Agent tip: When checking a developer company, note the directors and key persons. They can carry personal liability.

Section 70 (RERA)

RERA

The section that lets certain offences be compounded, which means settled by paying a prescribed sum. It is meant to avoid a long prosecution for offences punishable with imprisonment, on terms the rules set. The sum cannot exceed the maximum fine for the offence.

Legal basis: Section 70 of the RERA Act, 2016.

Example & agent tip

Example: A promoter admits a minor breach and pays the prescribed amount instead of facing a prosecution.

Agent tip: Compounding ends the case against the promoter but does not cancel a buyer's separate right to refund or compensation. Check this point before agreeing to any settlement.

Section 72 (RERA)

RERA

The section on the factors an adjudicating officer must weigh when deciding compensation or interest under Section 71. They include the unfair gain made through the default, the loss caused, whether the default was repeated, and any other factor needed to do justice.

Legal basis: Section 72 of the RERA Act, 2016.

Example & agent tip

Example: A promoter delayed possession of a Kharar flat by two years. The officer weighs the buyer's rent paid and the repeat nature of the delay.

Agent tip: Buyers should document losses, such as rent paid and receipts, because the officer looks at actual loss.

Section 79 (RERA)

RERA

The section that bars civil courts from entertaining any suit or proceeding on a matter the Authority, adjudicating officer or Tribunal can decide. It bars civil courts, not consumer commissions, as the Supreme Court has held.

Legal basis: Section 79 of the RERA Act, 2016; see also Imperia Structures Ltd v Anil Patni (Supreme Court, 2020).

Example & agent tip

Example: A buyer wants to file a civil suit for a refund, but the court says the matter belongs to the RERA Authority.

Agent tip: Pick the right forum at the start. A civil suit on a RERA matter will probably be thrown out.

Section 8 (RERA)

RERA

The section on what happens when registration lapses or is revoked. The Authority can consult the government on completing the remaining work, for example through the competent authority, the allottees' association or another method. On revocation, the association of allottees gets the first right of refusal to complete the work.

Legal basis: Section 8 of the RERA Act, 2016.

Example & agent tip

Example: After the registration of a stalled Kharar project is revoked, the buyers' association is offered first chance to take over and finish the unbuilt towers.

Agent tip: If a project you sold is hit by revocation, point buyers to their association early. A united association has the strongest claim under this section.

Section 80 (RERA)

RERA

The section on trying offences under the Act. A court lower than a Metropolitan Magistrate or Judicial Magistrate of the first class cannot try them, and the court takes cognizance only on a complaint by the Authority or an officer it authorises.

Legal basis: Section 80 of the RERA Act, 2016.

Example & agent tip

Example: The Authority files a complaint against a non-compliant promoter before the Magistrate in Mohali.

Agent tip: A buyer cannot file the criminal complaint directly. Ask the Authority to initiate prosecution.

Section 88 and 89 (RERA)

RERA

Two closing sections. Section 88 says the Act adds to other laws and does not replace them. Section 89 gives the Act an overriding effect over inconsistent provisions in other laws. Together they explain how RERA sits beside remedies such as consumer cases.

Legal basis: Sections 88 and 89 of the RERA Act, 2016.

Example & agent tip

Example: A state housing rule sets a procedure that clashes with the central Act on a buyer's refund right, and the RERA provision prevails.

Agent tip: RERA is an additional remedy, not the only one. A lawyer can advise which forum fits your case.

Section 9 (RERA)

RERA

The section that requires every real estate agent to register with the state authority before facilitating the sale or purchase of a plot, apartment or building in a registered project.

Legal basis: Section 9 of the RERA Act, 2016.

Example & agent tip

Example: A broker working in a registered Mohali project applies for registration and receives an agent number.

Agent tip: Use your registration number on all marketing. Without it you cannot act.

Structural Defect Liability (Section 14(3))

RERA

A buyer can report any structural defect or defect in workmanship, quality or services within five years of taking possession. The promoter must fix it within 30 days without charge, or pay compensation as provided under the Act.

Legal basis: Section 14(3) of the RERA Act, 2016.

Example & agent tip

Example: Seepage appears on a flat's wall two years after possession in Mohali. The buyer reports it in writing and the promoter must repair it within 30 days.

Agent tip: Report defects in writing with photographs and keep the date. Do it inside the five-year window.

2 terms

Term and Removal of Authority Members (Sections 23 and 26)

RERA

The Chairperson and Members of the Authority serve up to five years or until age 65, whichever is earlier, and cannot be re-appointed. The government can remove them for reasons such as insolvency, conviction involving moral turpitude, incapacity, acquiring a financial or other interest that affects their functions, or abuse of position. A High Court judge's inquiry is needed for the last two grounds.

Legal basis: Sections 23 and 26 of the RERA Act, 2016.

Example & agent tip

Example: A Member reaches age 65 in the fourth year of a term, so the seat falls vacant and the state must fill it within the time the Act allows.

Agent tip: Vacancies can slow hearings. If a hearing date keeps slipping, check whether the Authority has a full bench.

Title Insurance

RERA

Insurance that protects against loss from a defect in title. The RERA Act provides for title insurance for projects, but it is little used by individual buyers in India.

Legal basis: Section 16 of the RERA Act, 2016.

Example & agent tip

Example: A buyer takes title insurance on a high-value plot as extra protection.

Agent tip: Do not treat insurance as a substitute for a title search.

Related: Section 16 (RERA) Title