RERA compliance checklist for developers: registration, 70% account, quarterly updates and advertising rules

The Real Estate (Regulation and Development) Act, 2016 changed how projects are sold in India. Most of its obligations fall on the promoter, and many of them are carried out by sales, marketing and CRM teams: what goes into an ad, how much is collected at booking, what the agreement says and how bookings are reported.

This checklist walks through the main obligations section by section. It refers to the central Act. Each state has its own rules, forms and orders, so use this as a map and confirm the details for your state with your RERA consultant or lawyer.

This article is general information, not legal advice. Section numbers refer to the Real Estate (Regulation and Development) Act, 2016 as published on India Code.

011. Project registration

Section 3 says no promoter may advertise, market, book, sell or offer for sale, or invite people to buy, any plot, apartment or building in a real estate project without first registering it with the state authority.

• Exemptions. Registration is not required where the land is up to 500 square metres, or the number of apartments is up to eight, inclusive of all phases. States can lower these thresholds.
• Phases. Where a project is developed in phases, each phase is treated as a stand-alone project and registered separately.
• Application. Section 4 lists what the application must contain, including approvals, the sanctioned plan, land title, the proposed agreement for sale and a declaration on the time period for completion.
• Extensions. Under Section 6, the authority may extend registration for force majeure. It may also extend it in reasonable circumstances without default by the promoter, up to one year in aggregate.

022. The 70% separate account

Section 4(2)(l)(D) requires the promoter to deposit 70% of the amounts realised from allottees in a separate account maintained in a scheduled bank. The money must be used only for the cost of construction and land of that project.

• Withdrawals must be in proportion to the percentage of completion of the project.
• Each withdrawal must be certified by an engineer, an architect and a chartered accountant in practice.
• The project accounts must be audited within six months after the end of every financial year by a practising chartered accountant, who must verify that the funds were used for the project.
• Some states operate a three-account structure (collection, separate and free accounts). Follow your state's rules and your bank's setup.

For sales and collections, the practical rule is that demand letters and receipts must point buyers to the correct account. Keep account details in the project master so every letter uses them automatically.

033. Quarterly updates on the authority website

Section 11(1) requires the promoter to create a webpage for the project on the authority's website and update it every quarter. The update covers the list of units booked, the list of approvals taken and pending, and the status of the project.

• Keep a bookings register with unit, buyer and booking date that can be exported each quarter.
• Track approvals per project with dates.
• Record construction progress with photos and percentages that match the engineer's certificates.
• Diarise state deadlines for each registered phase.

044. Advertising and marketing

Section 11(2) requires every advertisement or prospectus to prominently mention the website address of the authority where details of the registered project are available, along with the registration number.

• Apply this to every format: Meta and Google ads, portal listings, hoardings, newspaper ads, brochures, WhatsApp creatives and your website.
• Check state-specific rules. MahaRERA, for example, has required a QR code linking to the project's registration details on advertisements from 1 August 2023, with penalties for non-compliance.
• Make sure channel partners use correct registration details in their own promotions.
• Section 12 makes the promoter liable to compensate buyers who suffer loss because of incorrect or false statements in an advertisement or prospectus.

055. Booking, advance and the agreement for sale

• 10% cap. Section 13 prohibits accepting more than 10% of the cost as an advance or application fee before entering into a written agreement for sale and registering it.
• Carpet area. The agreement must state the carpet area as defined in Section 2(k). Price per sq ft discussions should use it.
• Model form. Most states prescribe a model agreement. Departures that dilute buyer rights are often disallowed.
• Interest symmetry. Section 2(za) requires the interest rate the promoter charges a defaulting buyer to equal the rate the promoter pays when it defaults.

066. Changes to plans and transfer of the project

Section 14 requires the promoter to build according to the sanctioned plans and specifications. Changes to the plans that affect a buyer's unit need that buyer's consent. Other alterations to the sanctioned plans and specifications of the building or common areas need the written consent of at least two-thirds of the allottees, other than the promoter. Section 15 requires two-thirds consent and the authority's approval to transfer the project to a third party.

077. Possession, defects, association and conveyance

• Possession on time. Under Section 18, if the promoter fails to complete or give possession as agreed, a buyer may withdraw and get a refund with interest, or stay and receive interest for every month of delay.
• Defects. Section 14(3) requires the promoter to fix structural, workmanship, quality or service defects reported within five years of possession, within 30 days, without charge.
• Association. Section 11(4)(e) requires the promoter to enable formation of an association of allottees within three months of the majority of units being booked, unless local law provides otherwise.
• Conveyance. Section 17 requires a registered conveyance deed in favour of the allottee and transfer of common areas to the association, within three months of the occupancy certificate where local law sets no period.

088. Real estate agents

Sections 9 and 10 require agents to register with the authority and follow conduct rules. Developers should work only with registered agents and record their registration numbers.

09Penalties at a glance

10Who owns what

LeadOne AI keeps bookings, unit status, construction milestones and collections in one place, with an audit log of who changed what. That makes the quarterly bookings list and the payment history easy to produce.