Section 3 — Which Projects Must Register?
RERA Act 2016, Section 3(1)
"No promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building... in any real estate project or part of it, in any planning area without registering the real estate project with the Real Estate Regulatory Authority..."
Section 3(2) defines the threshold: a project must register if either of these conditions is met:
500
sq metres of land
Total area of land proposed to be developed exceeds 500 sq metres
8
apartments per phase
More than 8 apartments proposed in any single phase
The "Either/Or" Trap
Many developers try to argue their project is below threshold. But it is either/or — not both. A project with only 6 apartments but on 600 sq metres of land must still register. Also: "phase" is calculated per phase, not the whole project — a developer cannot split a large project into 9 phases of 8 units each to avoid registration. RERA authorities have held this to be a device to evade registration.
Exemptions — When Registration Is Not Required
Exemption Type
Detail / Agent Note
Below-threshold projects
Land ≤ 500 sq m AND ≤ 8 apartments — both conditions must be met for exemption
Completed projects (OC received)
Projects that already have Occupancy Certificate before the date RERA came into force in the state — but resale of such units is still governed by RERA
Renovation/repair only
Projects where no new apartment is being sold — pure renovation — but if any unit is being offered for sale, RERA applies
Central/state government projects
Projects being developed by or for central/state government authorities — subject to specific state RERA rules on exemptions
Plot-only (no construction)
Some states exempt pure plotted developments — check your state RERA rules; many states do NOT grant this exemption
Agent Rule: Never Take the Developer's Word on Exemptions
When a developer says "this project doesn't need RERA registration," verify independently. Go to the state RERA portal, search for the project, confirm it is genuinely below threshold, and document your check. An agent who markets an unregistered project that should have been registered faces ₹10,000/day under Section 62 — regardless of what the developer told them.
What the Developer Must File for Registration
Section 4 specifies the documents a developer must provide at the time of registration. Understanding these tells agents what information should be publicly available once a project is registered:
Developer Details
Name, address, photograph, PAN, legal entity documents, details of all promoters/directors
Land Title Documents
Sale deed, lease deed, or development agreement — establishing developer's rights over the land
Encumbrance Details
Any mortgage, lien, or charge on the land — must be disclosed at registration
Approved Plans & Layout
All government-approved plans — building plan, layout plan, sanctioned floor plans
Approvals Obtained
All government clearances — environmental, fire, electricity, water, municipal
Pending Approvals
List of approvals yet to be obtained — must be disclosed honestly
Carpet Area Details
Carpet area of every apartment type being offered — not SBA, not built-up
Completion Timeline
Phase-wise completion schedule with specific dates committed to RERA
Escrow Account
Details of the designated 70% escrow account — bank name, account number
Architects & Engineers
Details of the project architect, structural engineer, and contractor
What RERA Registration Reveals — Reading a Project Page
Once registered, a project's RERA page is a rich source of due diligence information. Here's what each section tells you:
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Registration Number
The unique RERA ID (e.g., P51700XXXXXX in Maharashtra). Always verify this matches what the developer shows you. Never trust a number the developer writes on a brochure — check the portal.
→
Registration Valid Until
The expiry date for the current registration. If a project's registration expired and was not renewed, marketing it is a Section 10(a) violation. Always check this date.
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RERA-Registered Completion Date
The date the developer committed to completion when registering. This is the date that triggers Section 18 rights if possession is delayed — not the date in the brochure.
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Promoter Details
Legal name, address, and contact. Verify against the developer's branding — discrepancies may indicate a shell entity arrangement.
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Approved vs Proposed Plans
The plans filed at registration are the legal commitment. Any deviation from these plans (extra floors, changed layout, different amenities) is a violation of Section 14.
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Quarterly Progress Reports (QPRs)
Filed every quarter — shows construction progress percentage, units sold, escrow balance, and withdrawals. The most important ongoing data point for agent due diligence.
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Complaint History
Some portals show complaints filed against the project. Cross-reference with the complaints database.
QPRs — The Developer's Ongoing Disclosure Obligation
Registration is not a one-time event. Developers must file Quarterly Progress Reports (QPRs) with the RERA authority within 30 days of each quarter-end. QPRs must include:
✓ % construction complete (per wing/phase)
✓ Number of units sold/booked
✓ Total amount collected from allottees
✓ Amount deposited to 70% escrow account
✓ Amount withdrawn from escrow (with reason)
✓ Outstanding approvals still pending
✓ Changes (if any) in approved plans
✓ Details of any contractor/architect changes
How Agents Use QPR Data
Before recommending any project, read the last 3–4 QPRs. A project with steady quarterly construction progress, proportionate escrow deposits, and no large unexplained withdrawals is a developer who is operating correctly. A project where the escrow balance has been declining while construction shows little progress is a significant red flag — buyer funds may be being diverted.
Agent Verification Checklist — Before Marketing Any Project
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Go to state RERA portal:
Verify the RERA registration number exists, is active, and matches the developer
☐
Check registration expiry date:
Registration must not be lapsed or expired
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Verify RERA-registered completion date:
Note this date — it is the Section 18 trigger date for buyers
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Read the last 3 QPRs:
Check construction progress, escrow balance, units sold
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Check complaint history:
Any outstanding unresolved orders against the developer?
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Verify approved plans match brochure:
Floor plan, amenities, and layout must match RERA filings
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Screenshot and date-stamp everything:
Your due diligence documentation protects you if a complaint arises later
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Never market before confirming registration:
Not "applied for" — confirmed active registration on the portal
Red Flags in Project Registration
Project "applied for" registration
Never enough — only market after registration is confirmed on portal
Registration expiry date has passed
Lapsed registration = unregistered project = Section 10(a) violation
Developer name differs from brochure
Shell company? Verify legal entity matches who you are contracting with
RERA completion date already passed
No extension obtained — buyers are already in Section 18 territory
No QPRs for 2+ quarters
Developer not filing = regulatory violation + possible financial difficulty
Escrow balance declining despite incomplete construction
Funds possibly diverted — serious risk to buyers
Multiple complaint orders not complied with
Developer ignoring RERA orders — enforcement risk, buyer risk
Approved plan differs from marketed brochure
Amenity misrepresentation — Section 14 violation, also Section 12 exposure for agent
Frequently Asked Questions
Can a developer sell units in one phase while another phase is under registration?
Yes — registration is phase-specific. A developer can sell units in Phase 1 (registered) while Phase 2 registration is pending. However, units in Phase 2 cannot be marketed until that phase is independently registered. Agents must verify that the specific phase of the unit they are selling is registered.
What happens if a project's registration lapses?
Once registration lapses, the developer cannot legally market, sell, or book any units. The developer must apply for extension before the lapse date. If lapsed, the developer is in the same position as an unregistered project — Section 59 penalties apply. Agents marketing a lapsed project face Section 62 liability.
Can RERA registration be cancelled?
Yes — under Section 7, the RERA authority can cancel a project's registration if the developer is unable to complete the project due to insolvency or other reasons, or if the developer is in persistent non-compliance. Cancellation triggers refund rights for all allottees under Section 18.
Does RERA registration guarantee the project is good?
No. RERA registration means the developer has filed the required documents and the project meets the disclosure requirements. It does not mean the RERA authority has verified the title, guaranteed completion, or endorsed the project quality. Due diligence by agents and buyers remains essential beyond just confirming registration.
Master RERA Project Verification
CREP™ covers RERA project registration, QPR interpretation, escrow analysis, and the complete due diligence framework — so you can verify any project in any state with professional confidence.