Which Properties are exempted from having RERA number? and Why?

When it comes to buying a property in India, one piece of advice is repeated almost everywhere: “Check the RERA number before investing.”

And there is a very good reason for that.

For decades, the Indian real estate sector faced challenges such as project delays, misleading
advertisements, lack of transparency, and disputes between developers and homebuyers. Many buyers
invested their hard-earned savings into properties only to face uncertainty regarding possession dates,
project approvals, or promised amenities. To address these concerns and create a more transparent real
estate market, the Government of India introduced the Real Estate (Regulation and Development) Act,
2016, commonly known as RERA.

The Act marked a significant turning point for the industry by making it mandatory for eligible real estate
projects to register with the respective state RERA authority before being marketed or sold. This registration process requires developers to disclose crucial information, including project approvals, land details, construction timelines, and other key updates, allowing buyers to make more informed decisions.

Today, a RERA registration number serves as an important indicator of transparency and compliance. Many homebuyers view it as a symbol of trust because it provides access to verified project information and offers a legal framework for addressing grievances.

But here’s something many property buyers don’t know:

Not every property in India is required to have a RERA number.

Yes, certain projects are legally exempt from RERA registration. This often creates confusion among buyers, who may assume that the absence of a RERA number automatically means a project is illegal or suspicious. The reality is quite different.

Why Was RERA Introduced in the First Place?

Before understanding the exemptions, it’s important to understand the purpose of RERA. Prior to the Act,
many homebuyers faced issues such as:
• Delayed possession of homes
• Misleading advertisements
• Changes in project plans without consent
• Lack of transparency regarding approvals
• Difficulty obtaining refunds

To address these concerns, the Government of India enacted RERA in 2016. The law requires developers to register eligible projects with the respective State RERA Authority before advertising, marketing, or selling them.

However, lawmakers also recognized that not every construction project poses the same level of risk to buyers. Therefore, specific exemptions were included in the Act.

1. Small Real Estate Projects -

One of the most significant exemptions under RERA applies to small-scale projects.

According to Section 3(2) of the RERA Act, registration is not required if:
• The land proposed for development does not exceed 500 square metres, or
• The project contains not more than eight apartments, including all phases.

Why is this exemption provided?

The government wanted to avoid burdening small developers and individual landowners with the
same compliance requirements that apply to large housing projects.

Imagine a landowner constructing six flats on a small plot for sale. Requiring the same registration
process that applies to a township with hundreds of apartments could increase costs and administrative complexities.

Therefore, smaller projects are exempt from mandatory registration.

What buyers should know

Just because a project is exempt from RERA does not mean buyers should skip due diligence.

Before purchasing, always verify:
• Land ownership documents
• Building approvals
• Completion certificates
• Local authority permissions

A project can be legally exempt from RERA and still require all other statutory approvals.

2. Projects Completed Before RERA Came Into Force

Another important exemption relates to completed projects.

Projects that had already received a valid Completion Certificate before RERA became operational
are not required to register under the Act.

Why are completed projects exempt?

RERA was designed to regulate ongoing and future real estate developments.

Applying the law retrospectively to projects that were already completed would have created
significant legal and administrative challenges.

As a result, projects that had legally concluded before the implementation of RERA were kept outside its scope.

Example

Suppose a residential apartment complex was completed in 2015 and had obtained a Completion
Certificate from the local authority.

Since the project was completed before RERA became effective, it does not require registration
under the Act.

A common misconception

Many buyers confuse a Completion Certificate with an Occupancy Certificate.

These are different documents.

The legal status of a project often depends on whether a valid Completion Certificate was obtained
before RERA came into force. Therefore, buyers should carefully verify project records instead of
relying solely on verbal assurances from developers or brokers.

3. Renovation and Repair Projects

Not every construction activity qualifies as a real estate project under RERA.
The Act exempts projects involving:
• Renovation
• Repair work
• Maintenance
• Improvements to existing structures
provided that such work does not involve the marketing, sale, or allotment of new units.

Why is this exemption necessary?

The primary objective of RERA is to protect buyers purchasing new properties.

If a building is simply being repaired or upgraded without creating and selling new units, there are
no new homebuyers whose interests need protection under the Act.

Therefore, registration is generally not required.

Examples

The following activities typically do not require RERA registration:
• Repainting an apartment building
• Replacing lifts
• Structural strengthening
• Upgrading common amenities
• Waterproofing and maintenance work

These activities improve existing buildings but do not create new real estate inventory for sale.

4. Redevelopment Projects Without New Sales

Redevelopment projects often create confusion among property owners and buyers.
A redevelopment project may be exempt from RERA if it does not involve:
• Marketing new units
• Selling apartments
• Advertising inventory
• Creating fresh allotments

Why does the exemption exist?

When redevelopment is carried out solely for existing residents and no new buyers are involved, the
risks that RERA seeks to address are largely absent.

However, the situation changes if the developer begins selling additional units.

When does RERA become applicable?

If a redevelopment project introduces:

• New apartments for sale
• Additional floors marketed to buyers
• Fresh bookings

then registration may become mandatory because the project enters the commercial real estate
market.

5. Certain Projects Outside Planning Areas

The RERA Act primarily focuses on projects developed within officially notified planning areas.
In some circumstances, projects located outside such planning jurisdictions may not automatically
require registration.

Why is this exemption available?

India has vast rural and semi-rural regions where formal urban planning systems may not exist.

Applying identical regulations across every location could create practical difficulties for small
developments in remote areas.

Therefore, flexibility has been built into the framework.

Why Doesn't the Government Require Every Property to Have a RERA Number?

At first glance, it may seem logical to require every real estate project to register under RERA.

Large housing projects involving hundreds of buyers carry significant financial and legal risks.

Small buildings, completed projects, and repair works generally do not create the same level of risk.
The exemptions help ensure that regulatory resources remain focused on projects where buyer
protection is most needed.

Developers cannot simply split a large project into multiple smaller components to evade
registration requirements

What Should Buyers Do If a Property Doesn't Have a RERA Number?

“Why doesn’t this project have a RERA number?”

If the project genuinely falls within one of the legal exemptions, focus on verifying the following:

Check Ownership
Confirm that the seller has clear legal title to the property.

Verify Approvals
Ensure the project has all required permissions from local authorities.

Review Completion Documents
Ask for Completion Certificates and Occupancy Certificates wherever applicable.

Examine Legal Records
Check whether the property is involved in litigation or subject to financial liabilities.

Consult a Property Lawyer
Professional legal review can identify risks that may not be obvious to buyers.

Final Thoughts

RERA has transformed India’s real estate landscape by bringing greater transparency, accountability,
and buyer protection to property transactions. Since its implementation in 2016, the Act has helped
regulate developers, reduce misleading advertising, ensure timely project disclosures, and provide
homebuyers with a dedicated platform for grievance redressal.

However, it is important to understand that the law was never intended to cover every single
construction activity in the country. The primary objective of RERA is to regulate real estate projects
that involve the sale of properties to buyers and carry a significant risk of financial or legal disputes.
Small-scale developments, completed projects, repair works, and certain other categories do not
present the same level of risk and therefore have been exempted from mandatory registration. By
creating these exemptions, the government sought to strike a balance between protecting
consumers and avoiding unnecessary regulatory burdens on small property owners, individual
builders, and non-commercial projects.

Properties that are generally exempt from mandatory RERA registration include:
• Small projects with up to eight apartments or up to 500 square metres of development area.
• Projects that obtained a Completion Certificate before RERA came into force.
• Renovation and repair work that do not involve new sales.
• Certain redevelopment projects without fresh allotments.
• Completely developed and ready for Registration Projects
• Some projects located outside planning areas, subject to applicable regulations.