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What are the Rights and Duties of Promoters, Allottees and Real Estate Agents under RERA Act?

Agents under RERA

RERA has defined the complete functioning of promoters, allottees, and real estate agents. In this article, we will discuss the right and duties for these real-estate players.

What is RERA?

RERA stands for Real Estate Regulatory Authority and was brought in to bring transparency in the real estate sector. It has made it mandatory for all builders or developers to do RERA registration before they commence a project.

What are the Functions & Duties of Promoters as per RERA?

Promoters are required to promote the real estate project that was developed or constructed by the developer. Promoter has been defined under relevant sections of RERA Act[1].

Under the RERA Act, there is compulsory registration of Promoters and every project must be registered with the RERA. In order to protect the interest of allottees, the Act has imposed various obligations and restrictions on the Promoter to ensure fairness and transparency in their dealing with allottees.

Following are the functions and duties of the Promoter:

  • To get the proposed real estate project registered with the RERA;
  • To create a web page and display the project on the website of RERA so as to make the details therein available on the public domain;
  • Not to advertise or make an offer for sale without registering the project;
  • The Promoter shall make available certain documents at the time of booking and issue of allotment letter such as Sanctioned plans, layout plans, along with specifications, approved by the competent authority, to be displayed at the site or such other place as may be specified by the regulations made by the Authority;
  • The stage-wise time schedule for completion of the project, including the provisions for civic infrastructure like water, sanitation, and electricity.
  • To obtain the completion certificate and the occupancy certificate from the relevant competent authority as per local laws or other laws for the time being in force and to make it available to the allottees individually or to the association of allottees, as the case may be.
  • To obtain lease certificate, where the real estate project is developed on leasehold land, specifying the period of the lease, and certifying that all dues and charges in regard to the leasehold land have been paid, and to provide the lease certificate to the association of allottees;
  • To refund the amount received in case of failure to give possession on time;
  • To compensate the allottees for loss due to defective title of the land etc.;
  • The Promoter shall not accept a sum more than ten percent of the cost of the apartment, plot, or building as the case may be, as an advance payment or an application fee, from a person without first entering into a written Agreement for sale, in the prescribed form, with such person.

What are the Rights and Duties of Allottees under RERA?

Allotees are defined as a person to whom a plot, apartment or building has been allotted, sold or otherwise transferred by promoters. It doesn’t include a person to whom the plot or apartment is given on rent.

 Following are the functions and duties of the Allottees:

  • To obtain information in relation to the promoter and the real estate project.
  • To know stage-wise time schedule of completion of the project and in relation to various services as agreed to be provided by the promoter to the allottees in accordance with the terms and conditions of the Agreement for Sale.
  • To claim possession once the project is completed by the promoter. Also, the Association of Allottees can claim possession of common areas.
  • To claim refund along with interest at prescribed rate and compensation as provided under the Act in the event the Promoter fails to comply with or due to non-completion of the project as per the terms of Agreement for Sale or due to discontinuance of his business as a developer on account of suspension or revocation of his registration under the provisions of this Act or the rules or regulations made thereunder.
  • To obtain documents and plans, including that of common areas, after handing over the physical possession of the apartment or plot or building as the case may be, by the promoter.
  • To make payments as per the Agreement for Sale.
  • To pay interest at a prescribed rate in case of delay in payments as specified in (a) above.
  • To participate in the formation of society/association.
  • To take physical possession of the apartment, plot or building as the case may be, within a period of two months of the occupancy certificate issued for the said apartment, plot or building, as the case may be.
  • To participate in the registration of Conveyance Deed.

What are the Functions and Duties of Real Estate Agents under RERA?

Following are the functions and duties of the Real Estate Agents under RERA:

  • Compulsorily get Agent / Broker RERA registration;
  • To maintain proper books of accounts and records as prescribed;
  • Not to facilitate sale or purchase of area under an unregistered planning area;
  • Not to engage itself in any unfair trade practices;
  • To provide all documents/information to the allottees required at the time of booking; and
  • To perform other functions as prescribed.

It may be noted that Unfair Trade Practice here means a practice of making any written/visible/oral statement that falsely represents that services are of particular grade or standard or if it represents that the promoter has approval or affiliation which he doesn’t have or if he makes false or misleading representation.


These real estate players have a task cut out to play the role and perform their functions and duties as stated under RERA. Non-compliance from promoter, allottees or agents under RERA may result in penalties. In case you have any query related to the same, contact Enterslice.

Read our article: Statutory Provisions of RERA: Registration Process, Documents, Offences, etc.

Ashish M. Shaji

Ashish M. Shaji has done his graduation in law (BA. LLB) from CCS University. He has keen interests in doing extensive research and writing on legal subjects especially on corporate law. He is a creative thinker and has a great interest in exploring legal subjects.

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