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.
(d) Allottee(k) Carpet area(n) Common areas(y) Garage(za) Interest(zf) Occupancy certificate(zk) Promoter(zm) Real estate agent(zn) Real estate project
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.
