By S&S Co. Advocates & Solicitors · Published 24 August 2026 · Informational content, not legal advice: see our disclaimer
Why Registration Is the Starting Point, Not a Formality
Every real estate project in India that involves the sale of a plot, apartment or building on land exceeding 500 square metres, or with more than eight apartments, must be registered with the relevant state Real Estate Regulatory Authority before it can be advertised, marketed, booked, sold or offered for sale in any manner. Registration under Section 4 of RERA is not a rubber-stamp process: the Authority is required to satisfy itself of clear title, a credible timeline, and adequate disclosure before granting it, and applications are frequently returned for incomplete documentation.
What the Application Must Include
A Section 4 application requires, among other things, authenticated copies of the promoter's title documents to the land (including the full chain of title and proof of satisfaction for any mortgage or charge on record), sanctioned plans and layout approvals, a proforma of the proposed allotment letter and agreement for sale, details of the real estate agents engaged, and the promoter's own past project track record where applicable. A common cause of delay is submitting title documents that show an unexplained gap in the chain, or an encumbrance that is not accompanied by proof it has been satisfied or released.
The 70% Escrow Commitment
Registration also formalises the promoter's obligation under Section 4(2)(l)(D) to deposit at least 70% of amounts realised from allottees for the project into a separate, project-specific bank account, to be used only for that project's land and construction cost, with withdrawals certified periodically against actual construction progress by an engineer, architect and chartered accountant. Developers running multiple projects through affiliated entities should build systems to keep each project's account genuinely ring-fenced from day one, since RERA authorities have shown they audit inter-project transfers closely.
Timeline Disclosure and Its Consequences
The timeline disclosed at registration becomes the benchmark against which delay compensation under Section 18 is later measured, so promoters should disclose a realistic completion date based on genuine project planning rather than an optimistic figure chosen for marketing purposes. An unrealistic timeline does not just create reputational risk: it creates a statutory compensation exposure the moment it is missed.
Frequently Asked Questions
Is registration required for every real estate project?
Registration is mandatory for projects on land exceeding 500 square metres, or comprising more than eight apartments: smaller projects may fall outside the statutory threshold, though state rules can vary on the specifics.
Can a project be marketed before registration is granted?
No: Section 3 of RERA prohibits a promoter from advertising, marketing, booking, selling or offering to sell any plot, apartment or building in a project without first registering it with the relevant Authority.
What happens if the title documents show a gap?
An incomplete or gapped title chain is a common reason applications are returned; the promoter is typically given an opportunity to refile with the missing documents, but persistent or evasive incompleteness can result in outright refusal.
References & Further Reading
This article references the following statutes, rules and judicial decisions. Case citations link to the fuller discussion in our Legal Updates archive, verified against primary sources at the time of writing.
- Real Estate (Regulation and Development) Act, 2016: Sections 3 (prohibition on marketing without registration), 4 (registration application requirements) and 4(2)(l)(D) (70% escrow requirement).
- See also our Legal Updates: Real Estate & Property archive.