RERA Project Transfer and Takeover – Promoter Succession and Project Handover Compliance

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

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

Q: What obligations does the incoming promoter inherit in a project transfer?

All RERA obligations, existing Agreements to Sale, possession timelines, escrow duties, reporting dues, pending complaints and penalties, and Section 18 interest for pre-existing delay.

Q: What is the role of an Association of Allottees in a project transfer?

The AoA has legal standing to give or withhold the two-thirds consent on behalf of members. Where no AoA exists, individual written consents from two-thirds of all allottees must be collected.

Q: Does RERA Section 15 apply to IBC insolvency cases?

The IBC-RERA overlap is complex and evolving. Insolvency resolution plans may transfer projects under IBC processes. Expert advisory is required to navigate both sets of requirements.

Q: How long does the RERA project transfer process take?

Typically 60 to 120 days from initiating allottee consent collection to RERA authority approval and portal amendment, depending on project size and state authority processing timelines.

Expert Advisory for RERA Project Transfers Under Section 15 — Allottee Consent, RERA Authority Approval, and New Promoter Obligations

Section 15 of the RERA Act governs the transfer of a registered real estate project from one promoter to another. A transfer is permissible only with the prior written consent of at least two-thirds of the allottees (calculated by number, not value) who have booked units in the project, and with the prior written approval of the state Real Estate Regulatory Authority. The incoming promoter assumes all obligations of the outgoing promoter under the RERA Act, the state RERA rules, and all Agreements to Sale entered into with allottees — meaning the incoming promoter inherits full statutory liability for any existing delays, disputes, or incomplete disclosures.

Project transfers arise in several contexts: voluntary business succession or group restructuring; acquisition of a distressed or stalled project by a new developer; insolvency and resolution plan implementation under the IBC; and land purchase transactions where a registered project is part of the acquired land. Each context involves distinct legal, RERA, and IBC requirements. Our advisory connects with our developer compliance, RERA overview, and business restructuring services.

Our RERA Project Transfer and Takeover Services

Voluntary Project Transfer (Section 15)

End-to-end advisory for promoter-to-promoter project transfers — allottee consent strategy, RERA authority application preparation, and updated registration amendment filing on the state RERA portal.

Allottee Consent Process Management

Management of the statutory two-thirds allottee consent process — consent notice drafting, allottee communication, response tracking, and consent certificate compilation for the RERA authority.

Distressed and Stalled Project Takeover

Due diligence and advisory for incoming promoters acquiring stalled, debt-ridden, or RERA-penalised projects — covering RERA liability mapping, escrow status review, and allottee complaint audit.

Incoming Promoter RERA Amendment

RERA portal amendment filing for the new promoter after transfer approval — updating promoter entity details, directors, bank account, and project completion commitments on the state RERA registration.

Association of Allottees Support

Formation support and advisory for Associations of Allottees — the collective statutory body that gives or withholds consent for project transfers and represents buyers in RERA proceedings.

Incoming Promoter Due Diligence

Pre-acquisition RERA compliance due diligence for incoming promoters — escrow balance review, outstanding quarterly updates, complaint history, penalty orders, and assessment of Section 18 interest exposure.

Why Expert Advice Is Essential in RERA Project Transfers

Incoming promoters inherit all RERA obligations — professional due diligence prevents acquiring unknown liability for delays, complaints, and escrow deficits
The allottee consent requirement is a powerful protection — expert management of the consent process prevents the consent percentage falling short
RERA authority approval is not guaranteed — a well-prepared application demonstrating the incoming promoter's capacity and commitment significantly improves approval prospects
Post-transfer RERA amendments must be completed promptly to restore the project to full active compliance status on the public portal
Distressed project takeovers involve complex interactions between RERA, IBC, and banking recovery laws — professional advisory is essential to navigate the overlap
A proper transfer structure protects the outgoing promoter from continued RERA liability and the incoming promoter from pre-transfer disputes

Frequently Asked Questions

Can a RERA-registered project be transferred to another promoter?

Yes, under Section 15 of the RERA Act, with two conditions: first, the prior written consent of at least two-thirds of the allottees who have booked units in the project; and second, the prior written approval of the state Real Estate Regulatory Authority. Both consents must be obtained before the transfer takes legal effect. The incoming promoter assumes all obligations of the outgoing promoter under the RERA Act, state rules, and all Agreements to Sale.

What obligations does the incoming promoter inherit in a project transfer?

The incoming promoter inherits the entire regulatory and contractual position of the outgoing promoter — including: all obligations under the RERA Act and state rules; all Agreements to Sale with existing allottees; all timelines and possession commitments; escrow account obligations; outstanding quarterly reporting dues; pending RERA complaints and penalty orders; and Section 18 interest liability for any pre-existing delay in possession delivery.

What is the role of an Association of Allottees in a project transfer?

An Association of Allottees (AoA) is the statutory collective body representing homebuyers in a RERA project under Section 11(4)(e). In a project transfer, the AoA has legal standing to give or withhold the two-thirds allottee consent on behalf of its members. Where an AoA has not yet been formed, the promoter must obtain individual written consents from two-thirds of all allottees. Our team assists with both AoA formation and individual consent management.

Does RERA Section 15 apply to IBC insolvency cases?

The interaction between RERA Section 15 and the Insolvency and Bankruptcy Code (IBC) is a complex and evolving area. In insolvency proceedings, a Resolution Professional may transfer the project to a new promoter through the resolution plan process. The Supreme Court has addressed the overlap between RERA and IBC in several judgements. Our team provides advisory on both RERA and IBC requirements in distressed project transfers, in coordination with insolvency counsel where required.

How long does the RERA project transfer process take?

The timeline depends on: the efficiency of the allottee consent collection process (typically 30–60 days for large projects); the completeness of the RERA authority transfer application; and the state authority's own processing timeline (which varies significantly between states). End-to-end project transfers typically take 60 to 120 days from initiating the allottee consent process to receiving the RERA authority's written approval and completing the portal amendment.

Get Expert Advice on RERA Project Transfers

Advisory, consent management, and RERA compliance for real estate project transfers and takeovers.