AAP Tax Law

Section 2 of the RERA Act, 2016: Definitions

Section 2 of the Real Estate (Regulation and Development) Act, 2016 defines the expressions used throughout the Act. These definitions govern the rights and obligations of homebuyers, promoters, real estate agents and regulatory authorities.

Under Section 2, unless the context otherwise requires, terms such as allottee, promoter, carpet area, common areas, real estate project and interest have the meanings set out below. State rules and applicable local laws may supply additional procedural requirements.

Key definitions under Section 2

The distinction between an allottee and a tenant is important: a person occupying property solely on rent is excluded from the definition of allottee under clause (d). Carpet area under clause (k) includes internal partition walls but excludes external walls, service shafts, exclusive balconies, verandahs and open terraces. Open parking areas fall within common areas under clause (n), whereas a garage has the specific characteristics stated in clause (y).

The definition of promoter under clause (zk) covers more than the named builder. Where construction or development and sale are undertaken by different persons, both may be deemed promoters and jointly responsible under the Act.

Complete definitions: Section 2, clauses (a) to (zr)

The following reproduces the substance of all statutory definitions, including their explanations and subclauses, with minor typographical corrections for readability.

Clause (a): Adjudicating Officer

means the adjudicating officer

Clause (b): Advertisement

means any document described or issued as

Clause (c): Agreement For Sale

means an agreement entered into

Clause (d): Allottee

in relation to a real estate project, means

Clause (e): Apartment

whether called block, chamber, dwelling unit,

Clause (f): Appellate Tribunal

means the Real Estate Appellate

Clause (g): Appropriate Government

means in respect of matters

(i) the Union territory without Legislature, the Central (ii) the Union territory of Puducherry, the Union territory Government; (iii) the Union territory of Delhi, the Central Ministry of Urban Development; (iv) the State, the State Government;

Clause (h): Architect

means a person registered as an architect

Clause (i): Authority

means the Real Estate Regulatory Authority

Clause (j): Building

includes any structure or erection or part of

Clause (k): Carpet Area

means the net usable floor area of an Explanation.- For the purpose of this clause, the expression

Clause (l): Chairperson

means the Chairperson of the Real Estate

Clause (m): Commencement Certificate

means the commencement

Clause (n): Common Areas

mean-

(i) the entire land for the real estate project or where the (ii) the stair cases, lifts, staircase and lift lobbies, fir escapes, and common entrances and exits of buildings; (iii) the common basements, terraces, parks, play areas, open parking areas and common storage spaces; (iv) the premises for the lodging of persons employed for the management of the property including accommodation for watch and ward staffs or for the lodging of community service personnel;

(v) installations of central services such as electricity, (vi) the water tanks, sumps, motors, fans, compressors, ducts and all apparatus connected with installations for common use; (vii) all community and commercial facilities as provided in the real estate project; (viii) all other portion of the project necessary or convenient for its maintenance, safety, etc., and in common use;

Clause (o): Company

means a company incorporated and registered

(i) a corporation established by or under any Central Act or (ii) a development authority or any public authority established by the Government in this behalf under any law for the time being in force;

Clause (p): Competent Authority

means the local authority or any

Clause (q): Completion Certificate

means the completion

Clause (r): Day

means the working day, in the concerned State or

Clause (s): Development

with its grammatical variations and cognate

Clause (t): Development Works

means the external development works

Clause (u): Engineer

means a person who possesses a bachelor's

Clause (v): Estimated Cost Of Real Estate Project

means the total

Clause (w): External Development Works

includes roads and road

Clause (x): Family

includes husband, wife, minor son and unmarried

Clause (y): Garage

means a place within a project having a roof and

Clause (z): Immovable Property

includes land, buildings, rights of

Clause (za): Interest

means the rates of interest payable by the Explanation.-For the purpose of this clause-

(i) the rate of interest chargeable from the allottee by the (ii) the interest payable by the promoter to the allottee shall be from the date the promoter received the amount or any part thereof till the date the amount or part thereof and interest thereon is refunded, and the interest payable by the allottee to the promoter shall be from the date the allottee defaults in payment to the promoter till the date it is paid;

Clause (zb): Internal Development Works

means roads, footpaths,

Clause (zc): Local Authority

means the Municipal Corporation or

Clause (zd): Member

means the member of the Real Estate Regulatory

Clause (ze): Notification

means a notification published in the

Clause (zf): Occupancy Certificate

means the occupancy certificate,

Clause (zg): Person

includes,- (i) an individual; (ii) a Hindu

Clause (zh): Planning Area

means a planning area or a development

Clause (zi): Prescribed

means prescribed by rules made under this

Clause (zj): Project

means the real estate project as defined in

Clause (zk): Promoter

means,-

(i) a person who constructs or causes to be constructed an (ii) a person who develops land into a project, whether or not the person also constructs structures on any of the plots, for the purpose of selling to other persons all or some of the plots in the said project, whether with or without structures thereon; or (iii) any development authority or any other public body in respect of allottees of-

(a) buildings or apartments, as the case may be, constructed

(b) plots owned by such authority or body or placed at their (iv) an apex State level co-operative housing finance society and a primary co-operative housing society which constructs apartments or buildings for its Members or in respect of the allottees of such apartments or buildings; or (v) any other person who acts himself as a builder, coloniser, contractor, developer, estate developer or by any other name or claims to be acting as the holder of a power of attorney from the owner of the land on which the building or apartment is constructed or plot is developed for sale; or (vi) such other person who constructs any building or apartment for sale to the general public. Explanation.-For the purposes of this clause, where the person who constructs or converts a building into apartments or develops a plot for sale and the persons who sells apartments or plots are different persons, both of them shall be deemed to be the promoters and shall be jointly liable as such for the functions and responsibilities specified, under this Act or the rules and regulations made thereunder;

Clause (zl): Prospectus

means any document described or issued as a

Clause (zm): Real Estate Agent

means any person, who negotiates or

Clause (zn): Real Estate Project

means the development of a

Clause (zo): Regulations

means the regulations made by the

Clause (zp): Rule

means the rules made under this Act by the

Clause (zq): Sanctioned Plan

means the site plan, building plan,

Clause (zr): Undefined expressions

words and expressions used herein but not defined in

Official statutory reference

Consult the Real Estate (Regulation and Development) Act, 2016 on India Code and the official Act PDF. The provisions should be read together with the applicable State or Union territory rules and notifications.