Skip to content

CS Executive · Economic, Commercial and Intellectual Property Laws · Real Estate Regulation and Development Law

Sunrise Builders of Pune plans a residential project of 20 apartments on 2,000 sq m of land and wants to start inviting bookings through newspaper advertisements. Under the RERA Act, 2016, what must it do first?

The promoter must register the project with the Real Estate Regulatory Authority before advertising, marketing, booking or inviting purchasers. The project is larger than 500 square metres and has more than eight apartments, so no exemption applies and prior registration is compulsory.

  1. ARegister the project with the Real Estate Regulatory Authority before advertising or inviting bookingsCorrect
  2. BAdvertise first and register within three months of the first booking
  3. CBegin bookings after the completion certificate is issued, with no registration
  4. DRegister only after collecting 70% of the sale price from allottees

Explanation

Section 3(1) bars a promoter from advertising, marketing, booking, selling or inviting persons to purchase any plot, apartment or building in a project without prior registration with the Authority. The project exceeds both exemption thresholds (500 sq m and eight apartments). The three-month window applies only to ongoing projects at commencement of the Act, so it does not apply here.

Did you get it right without looking?

One question tells you little. A timed set on Real Estate Regulation and Development Law shows your real accuracy, how long you take and where you lose marks.

Practise Real Estate Regulation and Development LawFree diagnostic mock

More Real Estate Regulation and Development Law questions