Prior Registration of Real Estate Projects with RERA: What It Means for Homebuyers and Developers

Buying a home or launching a real estate project is a big milestone. But in India, one important step stands as a gatekeeper for both — RERA Registration.

The Real Estate (Regulation and Development) Act, 2016 (RERA) was introduced to bring order, transparency, and fairness into the sector. And at the heart of it lies a simple rule:
👉 No builder can advertise, market, or sell a project without registering it with the RERA authority first.

Let’s break down why this matters — for homebuyers and for developers alike.

🔑 For Homebuyers: RERA Means Security for Your Investment

When you’re investing lakhs or even crores into a property, the biggest fear is: Will the project finish on time? Can I trust the builder?
This is where RERA acts as your safeguard.

How RERA Registration Helps You:

·         ✅ Transparency – Builders must disclose approvals, layouts, and timelines before selling.

·         ✅ Clarity – Registration details are available on the official RERA portal, helping you avoid risky projects.

📌 Example: If you come across an ad for “Kalyan Towers” but it isn’t RERA-registered, that should raise concern. A registered project, however, gives you full access to verified information and safeguards against false promises.

💡 Takeaway: Always check for RERA registration before making a booking. It’s your first layer of protection.

🏗️ For Developers: RERA Builds Trust and Compliance

For builders, RERA registration isn’t just a mandatory step — it can also be a competitive advantage.

Why It Matters for Developers:

·         ✅ Legal Compliance – Without registration, promotions and bookings are prohibited.

·         ✅ Credibility in the Market – Buyers are more confident when they see the “RERA registered” tag.

·         ✅ Faster Conversions – Compliance reassures buyers, making them more likely to book quickly.

·         ✅ Reduced Disputes – Disclosing approvals and timelines upfront limits misunderstandings later.

📌 Example: Suppose you’re about to launch “Green Valley Residency.” Getting RERA registration first not only makes the launch legal but also reassures buyers that the project is transparent and reliable.

💡 Takeaway: Consider RERA registration as a trust badge that strengthens your brand, reduces risks, and accelerates sales.

🌐 The Bottom Line: A Win-Win for All

Whether you’re buying your dream home or developing a new project, RERA registration creates a fair environment for both sides.

·         For homebuyers, it safeguards your investment and ensures accountability.

·         For developers, it enhances credibility, boosts sales, and ensures smooth operations.

👉 In simple terms: No RERA, No Deal. 

Exemptions from RERA Registration: What Homebuyers and Developers Should Know

RERA registration is usually the golden rule in India’s real estate sector. It ensures transparency, credibility, and protection. But what many don’t realize is — not every project needs RERA registration.

The Real Estate (Regulation and Development) Act, 2016 (RERA) lays down some clear exemptions. For homebuyers, this knowledge helps you avoid confusion. For developers, it ensures you know when registration is not legally required.

Here’s a breakdown of the key exemptions — explained from both sides.

📏 Small Projects Below a Certain Size

RERA was created to regulate large-scale developments, not small constructions.

• Exemption Rule: If the project covers less than 500 sq. meters of land OR includes 8 or fewer apartments (total, across all phases) → No registration is required.

• State Governments can reduce these limits further if needed.

👤 For Homebuyers:
If you’re buying in a small boutique project — say, six flats on a 400 sq. mt. plot — it doesn’t legally require RERA registration. However, this means less oversight for you, so it’s wise to check the builder’s credibility extra carefully.

🏗️ For Developers:
If you’re a small builder handling a single plot or a low-rise building, this exemption saves you from the paperwork and compliance burden. But note — the exemption applies only if you meet the size/unit limits. If the state reduces these thresholds, even your small project may suddenly require RERA clearance.

🏢 Projects Completed Before RERA

• Exemption Rule: If a project already obtained its completion certificate before RERA came into effect in the state, it doesn’t need registration.

👤 For Homebuyers:
Buying in an older, completed project? If it already has a completion certificate, RERA rules won’t apply. This isn’t a red flag — it simply means the project was legally “finished” before RERA existed.

🏗️ For Developers:
If your project was finished and certified before RERA implementation, you don’t have to go back and register it. This exemption protects developers from unnecessary retroactive compliance.

🔧 Renovation or Repair Work

• Exemption Rule: Purely renovating, repairing, or redeveloping a building (with no new flats for sale) doesn’t require RERA registration.

👤 For Homebuyers:
If your housing society is repainting, waterproofing, or upgrading facilities — don’t expect to see an RERA number. Since there are no fresh sales, RERA isn’t involved.

🏗️ For Developers:
If you’re handling repair or renovation contracts without selling new units, you don’t need to worry about registration. However, once you add saleable flats/units, the project comes under RERA’s scope.

🏘️ Phased Projects Must Be Registered Separately

This is not an exemption but an important special rule.

• Norm: Each phase of a large project is treated as a separate project. Registration is required for every phase, even in the same township.

👤 For Homebuyers:
If you book in Phase 2 of a township project, check that this particular phase has a valid RERA registration. Don’t rely on Phase 1 approvals.

🏗️ For Developers:
You’ll need to register each phase separately. This may seem like extra compliance, but it ensures smoother sales and avoids disputes later — since buyers can track project details phase by phase.

✅ Key Takeaways

• RERA is not universal — some small, old, or non-sale projects don’t need it.

• For Homebuyers: Exemptions mean you must do your homework. A project without RERA might be exempt — or it might be hiding something. Always verify!

• For Developers: Exemptions reduce red tape for genuinely small or completed projects, but compliance is still mandatory for larger, sale-focused phases.

👉 Ultimately, RERA exemptions balance buyer protection with practicality for builders.

Rule of thumb:

• If you’re a buyer → Always ask “Is this project RERA registered? If not, why?”

If you’re a developer → Stay updated on your state’s rules to know when registration is necessary.

Article by Kalyan Kannepally

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Disclaimer: This blog is intended for informational purposes only and should not be considered as financial, tax, or legal advice.

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