Real Estate Regulation and Development Act, 2016

Section 3 of RERA: Prior Registration of Real Estate Projects

Section 3 of the Real Estate (Regulation and Development) Act, 2016 requires promoters to register covered real estate projects with the Real Estate Regulatory Authority before advertising, marketing, booking or selling plots, apartments or buildings. The provision also specifies exemptions and rules for ongoing and phased projects.

What is mandatory registration under Section 3(1)?

Under Section 3(1), a promoter cannot advertise, market, book, sell, offer for sale or invite purchasers for a plot, apartment or building in a real estate project, or part of a project, in a planning area unless the project is registered with the relevant Real Estate Regulatory Authority (RERA). Registration is therefore required before these activities begin, unless a statutory exemption applies.

A promoter, as defined in Section 2(zk), broadly includes developers, builders and other persons developing or selling qualifying projects. A real estate project under Section 2(zn) includes construction or conversion of buildings and development of land into plots for sale, along with common areas and development works. A planning area is defined in Section 2(zh).

Ongoing projects when the registration provisions commenced

The first proviso to Section 3(1) addresses projects ongoing when the relevant provisions commenced and for which no completion certificate had been issued. The promoter was required to apply for registration within three months of commencement. This was a transitional requirement, not a fresh three-month period available to every project today. The registration-related provisions came into force on 1 May 2017.

Projects outside a planning area

Under the second proviso to Section 3(1), where a project is developed outside a planning area with the requisite permission of the local authority, the Regulatory Authority may, in the interest of allottees, direct registration by an order. The Act and applicable rules and regulations then apply from the stage of registration.

Exemptions under Section 3(2)

1. Small projects - Section 3(2)(a)

Registration is not required where the proposed land area does not exceed 500 square metres or the number of apartments proposed does not exceed eight, inclusive of all phases. The word or is important. However, the appropriate Government may lower the applicable exemption thresholds. Check the rules and notifications governing the State or Union territory before relying on this exemption.

2. Projects already completed - Section 3(2)(b)

Registration is not required where the promoter received a completion certificate before commencement of the Act's relevant provisions. Under Section 2(q), a completion certificate is the certificate issued by the competent authority certifying development according to approved plans and specifications under local law. An occupancy certificate has a distinct definition in Section 2(zf); the two should not automatically be treated as interchangeable.

3. Renovation, repair or redevelopment - Section 3(2)(c)

Registration is not required for renovation, repair or redevelopment that does not involve marketing, advertising, selling or new allotment of any apartment, plot or building under the project. Where redevelopment includes new sale or allotment, this exemption cannot be assumed to apply.

Registration of each phase separately

The Explanation to Section 3 provides that, when a project is developed in phases, each phase is treated as a standalone real estate project and the promoter must obtain separate registration for each phase. For the small-project exemption, Section 3(2)(a) expressly refers to the aggregate thresholds inclusive of all phases; dividing a development into phases does not itself establish eligibility for exemption.

Practical point: Before a purchaser makes a booking or pays an advance, check the project's registration number, registered phase, promoter details, declared completion date and approvals on the relevant State or Union territory RERA portal. Registration does not independently guarantee project completion or eliminate the need for legal due diligence.

Related registration provisions and consequences

Section 4 specifies the application requirements, including project particulars and statutory disclosures. Section 5 governs grant or rejection of registration. Section 6 concerns extension and Section 7 addresses revocation. Under Section 59, contravention of Section 3 may attract a penalty up to ten per cent of the estimated cost of the real estate project; continued non-compliance with orders, decisions or directions under Section 59(1) may lead to additional statutory consequences, including imprisonment or a further fine, subject to the Act.

Official law and regulatory resources

For the governing statutory text, consult the India Code database and search for the Real Estate (Regulation and Development) Act, 2016 (Act 16 of 2016). For applicable rules, notifications and State or Union territory authorities, consult the Ministry of Housing and Urban Affairs and the relevant jurisdictional RERA website. State rules and notifications should be read with the central Act.

Frequently asked questions

Can a promoter advertise before RERA registration?

Generally no. Section 3(1) prohibits advertising and marketing covered projects before registration, subject to the statutory exemptions.

Does every project with eight or fewer apartments need registration?

Under the central threshold in Section 3(2)(a), a project with no more than eight proposed apartments, inclusive of all phases, falls within the exemption. However, a lower threshold notified by the appropriate Government may change the position in a particular jurisdiction.

Must different phases be registered individually?

Yes. Each phase is treated as a standalone project for registration, subject to the Act's applicable exemption provisions.