RERA Registration for Real Estate Developers – Project and Promoter Compliance

Q: What must a promoter register under RERA?

All qualifying projects must be registered before any advertisement, booking, or collection from buyers. Each phase may need separate registration with full Section 4 document disclosure.

Q: What is the 70% escrow account requirement under RERA?

Section 4(2)(l) requires 70% of buyer collections to be deposited in a dedicated project bank account. Withdrawals are limited to project completion percentage, certified by an engineer, architect, and CA.

Q: What disclosures are required on the RERA portal?

Promoter entity details, layout and building plan, land title, carpet area schedule, proforma Agreement to Sale, project completion timeline, and agent details must all be disclosed under Section 4.

Q: What happens if a promoter fails to deliver the project on time?

Section 18 requires payment of interest at SBI MCLR plus 2% per month of delay. If the buyer withdraws, a full refund with interest must be made within 45 days.

Q: Can a RERA project be transferred to another promoter?

Yes, under Section 15, with written consent of at least two-thirds of allottees and prior written approval of the state RERA authority. The incoming promoter assumes all obligations.

Complete RERA Compliance for Promoters — Project Registration, Escrow Obligations, Quarterly Reporting, and Statutory Disclosures

Under Section 3 of the RERA Act, every promoter is prohibited from advertising, marketing, booking, selling, or offering for sale any real estate project — or accepting any sum of money in respect thereof — without first registering the project with the state Real Estate Regulatory Authority. Non-registration exposes the promoter to penalties of up to 10% of the estimated project cost and criminal liability of up to three years' imprisonment for continued default. Registration also triggers ongoing compliance obligations: statutory disclosures on the RERA portal, maintenance of a 70% ring-fenced escrow account under Section 4(2)(l), quarterly progress reports, and annual CA-certified audit filings.

Our developer compliance services cover every stage from new project registration through quarterly reporting, project timeline extensions, project transfer and takeover, and post-registration modifications. For developers considering new entity formation or restructuring, this service links with our business restructuring advisory.

Our RERA Services for Developers and Promoters

RERA Project Registration

Complete RERA project registration — documentation, portal filing, and disclosure submission for new residential and commercial projects under Section 3 of the RERA Act.

Promoter Disclosure Compliance

Preparation and portal upload of all mandatory Section 4 disclosures — commencement certificate, layout plan, carpet area schedule, proforma allotment letter, and Agreement to Sale.

Escrow Account Advisory

Advisory on establishing and maintaining the mandatory 70% project escrow account under Section 4(2)(l) — including withdrawals, CA certification, and bank liaison for escrow compliance.

Quarterly Progress Reporting

Timely quarterly progress updates on the state RERA portal — construction status, bookings, collections, and escrow balance reporting as required under Section 11 of the Act.

Annual CA Audit Filing

Annual audited project accounts filing with CA certification — including statement of accounts, escrow reconciliation, and Form compliance under RERA audit requirements.

RERA Penalty & Complaint Defence

Representation and response management for RERA authority notices, buyer complaints under Section 31, penalty proceedings, and Appellate Tribunal matters.

Why Promoters Must Prioritise RERA Compliance

Legal sale and marketing — RERA-registered projects can be legally advertised, booked, and sold; unregistered projects face penalties and forced stoppage
Avoids personal liability — directors and partners of a promoter entity are personally liable for RERA Act violations under Section 60
Reduces buyer disputes — transparent disclosures, escrow discipline, and timely reporting significantly reduce the incidence of buyer complaints
Enables institutional financing — most project finance banks and NBFCs require RERA registration as a condition precedent for loan disbursement
State RERA portal transparency builds market reputation — buyers and channel partners check RERA portal compliance before engaging with a project
Quarterly reporting creates early-warning discipline — systematic progress tracking identifies delays and fund shortfalls before they become defaults

Frequently Asked Questions

What must a promoter register under RERA?

A promoter must register the real estate project with the state RERA authority before advertising, marketing, booking, selling, or collecting any sum from a prospective buyer. Each project phase may need to be registered separately. The registration application requires submission of all Section 4 documents — including title documents, layout plan, commencement certificate, carpet area schedule, and proforma Agreement to Sale.

What is the 70% escrow account requirement under RERA?

Under Section 4(2)(l) of the RERA Act, a promoter must maintain a separate account with a scheduled bank for each registered project and deposit 70% of all amounts realised from allottees — including collections from home loans and construction-linked payments — into this account. Withdrawals are permitted only in proportion to the percentage of completion of the project and must be certified by an engineer, architect, and chartered accountant.

What disclosures are required on the RERA portal?

Section 4 of the RERA Act requires promoters to disclose: details of the promoter entity and promoter's track record; layout and building plan approved by the competent authority; land title and encumbrance status; carpet area of each apartment; number and type of apartments; proforma Agreement to Sale; timeline for project completion; and details of broker/agent appointments. These disclosures must be updated regularly on the state RERA portal.

What happens if a promoter fails to deliver the project on time?

Under Section 18, a promoter who fails to complete or deliver possession by the date specified in the Agreement to Sale is liable to pay interest at the SBI MCLR plus 2% per annum on the amounts collected from the buyer for every month of delay. If the buyer opts to withdraw from the project, the promoter must refund the full amount paid with interest within 45 days. Continued delays can attract additional RERA authority action and penalty orders.

Can a RERA project be transferred to another promoter?

Yes. Under Section 15 of the RERA Act, a promoter may transfer a registered real estate project to a third party only with the written consent of at least two-thirds of the allottees (by number) and with prior written approval of the state RERA authority. The incoming promoter assumes all obligations of the original promoter under the Act. See our Project Transfer and Takeover service for complete advisory.

Register and Stay Compliant Under RERA

End-to-end RERA project registration, reporting, and compliance management for developers.