Guide: Duties of Promoter under RERA

calendar09 Jul, 2020
timeReading Time: 4 Minutes
Promoter under RERA

A promoter under RERA is defined as the person who is entrusted with the task of promoting the real estate project, which was developed or constructed by the developer. There are some important duties of the promoter under the RERA Act.

Who is a Promoter under RERA?

As per the RERA Act, 2016[1], a promoter has been defined under Section 2(zk) as any of the following persons:

  • A person who constructs any independent building or a building consisting of apartments, or converts an existing building into apartments, to sell all or allot the apartments to any other persons and includes his assignees.
  • A person who develops land into the project, whether or not the person also constructs structures on any of the plots, to sell it to other persons, whether with or without structures.
  • Any development authority or other public body in respect of allottees who builds or constructs which is owned by them or placed at their disposal by the Government.
  • Any such authority that owns the plots or placed at their disposal by the Government for selling purposes of the plots or apartments.
  • A State-level co-operative housing finance society and a primary co-operative housing society that constructs buildings or apartments for its members or in respect of the allottees.
  • Any person who acts as a builder, contractor, developer, estate developer, or claims to be the holder of the power of attorney from a landowner on which the apartment or building is constructed, or any plot is developed for the purpose of sale.
  • Any person who constructs any building or apartment for sale to the general public.

Functions and Duties of the Promoter

Functions and Duties of the Promoter

Create Website

Section 11(1) provides that a promoter shall create his webpage on the Website of the Authority and enter all the details of the proposed project for public view, that includes:

  • Details of the registration granted by an Authority
  • Quarterly up to date the list of number and type of apartments or plots booked
  • Quarterly up to date the list of approvals taken and also approvals which are pending subsequent to commencement certificate
  • Such other information and documents as specified by the regulations made by the authority.

Read our article:Everything You Need to Know Regarding the RERA


Section 11(2) provides that the advertisements or prospectus issued or published by the promoter shall mention the website address of an Authority.

Information to Allottees

Section 11(3) provides that a promoter at the time of booking and issue of allotment letter must be responsible for making available to the allottee the following information:

  • Sanctioned plans, layout plans, and other along with specifications, approved by a competent authority, by a display at the site or any other place as specified by the regulations made by an authority.
  • The stage-wise time schedule of the completion of the project includes the provisions for civil infrastructure like water, electricity, and sanitation.

Responsibility of Promoter

RERA registration for promoters is mandatory. Section 11(4) provides that a promoter must be responsible-

  • He has all the obligations, responsibilities, and functions under the Act or rules or regulations. His responsibility is for the allottees as per an agreement for sale or to the association of allottees till the conveyance of the apartments, buildings or plots to the allottees.
  • To obtain the occupancy certificate and the completion certificate from a competent authority and make it available to the allottees individually or to an association of allottees.
  • To obtain a lease certificate specifying the period to lease and certify all charges and dues in regard to the leasehold, which has been paid and to make the lease certificate for an association of allottees. 
  • For providing and maintaining all the essential services, on reasonable charges, until the making over the maintenance of a project by the association of allottees.
  • Enable the formation of association or society or co-operative society of the allottees or a federation of the same under the applicable laws
  • To execute the registered conveyance deed of apartment, plot, or building in favor of the allottee along with the undivided proportionate title in common areas to the association of allottees or competent authority.
  • To pay the outgoings until he transfers the physical possession of the real estate project to the allottee, including land cost, ground rent, municipal or other taxes, etc.
  • After executing an agreement for sale for any apartment etc. not to mortgage or create on such apartment, building or plot, even if a mortgage is done it must be ensured that it will not affect the rights and interest of allottee

Accepting deposits

Section 13(1) provides that the promoter must not accept the sum of more than 10% of the cost of the apartment, building, or plot as an advance payment. He must also not take an application fee from a person without first entering into the written agreement for sale or register the said agreement for sale under any law for the time being in force.


Section 13(2) provides that an agreement for sale must be in such form as prescribed. It must also specify the particulars of development of the project along with the specifications and internal development works and external development works.


Section 14 provides that the project must be developed and completed in accordance with the sanctioned plans, layout plans, and other specifications as approved by a competent authority.


Promoters under RERA are tasked with various responsibilities under the RERA Act. All promoters who undertake the project with over 8 units or 500 square meters of development are required to get RERA registration done and fall under the ambit of RERA regulations.

Read our article:Comprehensive Guide on RERA Registration for Promoters

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