Authorities & RERA
What is a Promoter Under RERA?
The Act imposes a long list of duties on the person selling you the flat. Most buyers have never seen the list. Here it is.
The short answer
A promoter is whoever is building and selling you the flat — the developer, the landowner in a joint development, sometimes a co-operative society or a development authority.
RERA imposes on them a long and specific list of obligations. Most buyers have never seen it, and therefore never invoke it.
Here it is.
Who counts as a promoter
Broader than you'd think. Section 2(zk) includes:
- A person who constructs, or causes to be constructed, a building for sale
- A person who develops land into a project for sale
- A development authority, when acting in that capacity
- A co-operative society or association, when it builds for sale
- The landowner in a joint development, in certain circumstances
- Anyone who claims to be acting as the holder of a power of attorney for the above
Which matters when things go wrong. In a joint development, "it's the landowner's problem, not ours" may not be an answer — and it is worth knowing that before you need it.
What a promoter MUST do
| Obligation | The provision |
|---|---|
| Register the project before advertising, marketing, booking or selling | Section 3. Applies to land above 500 sq m or more than 8 units. |
| Display the RERA number on every advertisement and prospectus | Section 11(2). |
| Deposit 70% of receipts in escrow, usable only for that project | Section 4(2)(l)(D). |
| Disclose everything — plans, layout, approvals, land title, possession date, carpet area schedule | Section 4. |
| Upload quarterly progress to the RERA portal | Section 11(1). The single most useful thing for a buyer. |
| Not take more than 10% before a registered agreement for sale | Section 13. |
| State carpet area in the agreement | Section 4 & the model agreement. |
| Hand over possession by the declared date, or pay interest for the delay | Section 18. |
| Obtain the completion and occupancy certificates | Section 11(4)(b). |
| Form the allottees' association | Section 11(4)(e). |
| Execute the conveyance of the land and common areas to the association | Section 17. |
| Rectify structural defects free of charge, for 5 years | Section 14(3). See below. |
| Pay all outgoings — taxes, charges, land cost — until conveyance | Section 11(4)(d). |
| Compensate for false statements in the advertising or prospectus | Section 12. |
What a promoter CANNOT do
- Advertise or sell an unregistered project. That is what a "pre-launch" usually is, and it is a breach of Section 3.
- Take more than 10% of the price before a written, registered agreement for sale (Section 13).
- Alter the sanctioned plan or the common areas without the consent of two-thirds of the allottees (Section 14).
- Make minor additions to your apartment without your consent.
- Transfer their majority rights in the project to a third party without the consent of two-thirds of allottees and the Authority (Section 15).
- Accept a booking without disclosing the required information.
The sanctioned plan cannot be changed without the written consent of two-thirds of the allottees.
Which means: the extra tower in your open space, the clubhouse converted into flats, the amenity block that became parking — none of it can lawfully happen without the buyers agreeing.
Builders sometimes obtain that consent by burying it in the agreement — a clause where you pre-consent to any future changes. Look for it. Strike it out. A blanket advance consent to unspecified future alterations is exactly what Section 14 exists to prevent.
The 5-year defect liability — badly underused
If any structural defect — or any defect in workmanship, quality or provision of services — is brought to the promoter's notice within five years of possession, the promoter must rectify it, free of charge, within 30 days.
If they don't, the allottee is entitled to compensation.
Five years. Free. And almost nobody invokes it.
Leaking walls. Cracked slabs. Failing plumbing. A lift that was never right. Seepage. Write to the builder, in writing, citing Section 14(3), within five years. Keep the receipt.
This is one of the most valuable and most neglected rights the Act gives a buyer.
How to use this page
- Before you buy: check that the promoter has done what Sections 3, 4 and 11 require. It is all on the RERA portal.
- At the agreement: check Section 13 (10% cap), the carpet area, and the possession date.
- During construction: read the quarterly progress filings.
- If the plan changes: Section 14. Two-thirds consent. Ask whether it was obtained.
- If possession is late: Section 18. Interest, or refund. Your choice.
- After possession, for five years: Section 14(3). Structural defects, fixed free.
- When the society is formed: Section 17. Conveyance of the land.
The Real Estate (Regulation and Development) Act, 2016 is a central law. But it is administered by a separate authority in each state, each with its own portal, its own rules, its own forms, and its own fee schedule.
Which means: the principles below apply everywhere. The procedure does not.
Always check YOUR state's RERA portal for the current rules, forms and fees. Search for it by name — MahaRERA, K-RERA, TS-RERA, TNRERA, UP RERA, HARERA — rather than following a link a builder or a broker sends you.
Frequently asked questions
Who is a promoter under RERA?
Broader than you'd expect. Anyone who constructs or causes to be constructed a building for sale, or develops land into a project for sale — including a development authority, a co-operative society building for sale, and in certain circumstances the landowner in a joint development. Which matters when things go wrong: 'it's the landowner's problem, not ours' may not be an answer.
What are a builder's obligations under RERA?
Register before advertising or selling. Display the RERA number on every advertisement. Deposit 70% of receipts in escrow. Disclose plans, approvals, title and possession date. Upload quarterly progress. Not take more than 10% before a registered agreement. Hand over on time or pay interest. Obtain the completion and occupancy certificates. Form the allottees' association. Execute the conveyance. And rectify structural defects free of charge for five years.
Can a builder change the sanctioned plan?
Not without the written consent of two-thirds of the allottees — Section 14. Which means the extra tower in your open space, or the clubhouse converted into flats, cannot lawfully happen without the buyers agreeing. Some builders bury a blanket advance consent in the agreement. Look for that clause and strike it out.
What is the 5-year defect liability under RERA?
Section 14(3): if any structural defect, or defect in workmanship, quality or services, is brought to the promoter's notice within five years of possession, they must rectify it free of charge within 30 days — and if they don't, you are entitled to compensation. Leaking walls, cracked slabs, failing plumbing, seepage. Almost nobody invokes it. Write to the builder, in writing, citing Section 14(3), and keep the receipt.
Can a builder sell a project to someone else?
Not their majority rights and liabilities in it — not without the written consent of two-thirds of the allottees AND the prior approval of the Authority. Section 15.