Complete List of Promoter Obligations Under RERA
| Obligation | RERA Section | Penalty for Violation |
|---|---|---|
| Register project before selling | Section 3 | Up to 10% of project cost |
| Maintain 70% funds in escrow | Section 4(2)(l)(D) | Penalty + potential project suspension |
| Deliver possession by registered date | Section 18 | Interest at MCLR+2% or full refund with interest |
| Rectify structural defects (5 years) | Section 14(3) | Rectify within 30 days or compensate |
| Not alter layout/plan without consent | Section 14(1) | Reverse alteration + compensation |
| Obtain OC before possession | Section 17 | Cannot hand over without OC |
| Transfer title to society/association | Section 17 | Buyer right to demand transfer |
Key Buyer Rights Against Promoter
Your Rights When Promoter Defaults
- Possession delay: Claim interest at SBI MCLR+2% per month OR full refund with same interest rate
- Structural defect: Promoter must rectify within 30 days — else claim compensation from RERA
- Area shortfall: If actual carpet area is less than declared — proportional refund
- Plan change: Any major change to approved plan requires your written consent
- OC not obtained: Promoter cannot demand possession payment without OC
- Title transfer: Right to demand transfer of common areas to society on registration
Related Terms
Frequently Asked Questions
Under RERA Section 2(zk), promoter includes any builder, developer, landowner who sells property, or contractor who develops and sells real estate. Essentially, any entity that develops and sells residential or commercial property is a promoter under RERA and must comply with all promoter obligations — registration, escrow, delivery dates, and structural warranty.
Key promoter obligations: (1) Register every project 500 sq m+ with state RERA before selling, (2) Deposit 70% of buyer collections in dedicated project escrow account, (3) Deliver possession by the RERA-registered date or pay delay interest, (4) Rectify structural defects for 5 years after possession, (5) Sell only on RERA-defined carpet area basis, (6) Obtain OC before handing possession, (7) Transfer common area title to the residents' society.
RERA violations attract: financial penalties up to 10% of project cost, imprisonment up to 3 years for wilful non-compliance, and RERA authority can revoke project registration. Buyers can file RERA complaints for specific violations — delay, defects, misrepresentation — and get binding orders for compensation, refund, or rectification. RERA Recovery Officers can attach builder assets for non-compliance.
Minor changes are permissible. Major changes — affecting structural specifications, floor plans, or amenities — require written consent of at least 2/3 of allottees who have booked in that phase. Any changes to common areas or amenities require the same consent threshold. A promoter who changes plans unilaterally faces RERA complaint and compensation liability.
Yes — if a landowner enters a JDA (Joint Development Agreement) with a builder and benefits from the sale of developed units, they may be co-promoters under RERA. Both the developer and the landowner can be held jointly and severally liable for RERA obligations. When buying from a JDA project, check that both the developer and landowner are listed as promoters on the RERA registration.