RERA and Real Estate Laws Practice
Our RERA and Real Estate Laws practice advises developers, allottees, investors, and financial creditors on the Real Estate (Regulation and Development) Act, 2016, real estate transactions, property due diligence, and the intersection of RERA rights and IBC insolvency proceedings where a developer has entered CIRP. RERA created enforceable rights for flat buyers in India — delayed possession, defective construction, and misrepresentation all give rise to specific statutory remedies before the RERA authority.
- RERA requires developers to register projects and maintain separate escrow accounts for buyer payments — 70% of all amounts realised must be deposited in the project-specific escrow account and used only for that project.
- Developers are liable to pay interest to allottees for each month of delay in delivery of possession at the rate prescribed under the applicable state RERA rules. We advise allottees on quantifying and claiming this interest.
- RERA complaints against developers must be filed before the respective state RERA authority. Appeals lie to the Real Estate Appellate Tribunal, and further to the High Court.
- Where a real estate developer has entered corporate insolvency resolution proceedings under the IBC, 2016, allottees are recognised as financial creditors under Section 5(8)(f) of the Code. We represent allottees before the NCLT.
- For real estate transactions, title due diligence examining the seller’s chain of title through land records, encumbrance certificates, and municipal records is essential before any acquisition.
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RERA Compliance for Developers — Our Advisory
We advise real estate developers on RERA project registration under the applicable state RERA rules, which vary significantly from state to state in their procedural requirements, fee structures, and project completion certificate requirements. We advise on the escrow account obligation: maintaining a separate escrow account per project, depositing 70% of all project receipts, using escrow funds only for specified purposes, and maintaining the withdrawal certifications required by project architects and engineers. We also advise on the RERA agent registration requirement for real estate agents within RERA’s scope.
Allottee Rights — Complaints and Enforcement
We represent flat buyers and allottees in RERA complaints for delayed possession — claiming interest from the committed possession date through actual delivery or refund; for structural defects and defective workmanship, which RERA requires developers to rectify within the five-year post-possession period; and for misrepresentation in marketing materials where the unit delivered differs from what was represented.
Appeals from RERA authority orders lie to the Real Estate Appellate Tribunal, and from the REAT to the High Court. We represent clients at all three levels.
Real Estate Transactions — Title Due Diligence and Documentation
We conduct title due diligence for real estate transactions — examining the seller’s chain of title through land records, encumbrance certificates, and municipal records; confirming the property is free from litigation, attachment, or regulatory restriction; and identifying any approvals required for the proposed use. We advise on the documentation of the transaction: agreement for sale, sale deed, and the stamp duty and registration requirements under the applicable state’s legislation.
For commercial real estate transactions, we advise on leave and licence agreements, lease deeds, and joint development agreements — including the structuring of JDA terms between landowners and developers.
“Title due diligence before a real estate transaction is not a legal formality — it is the only way to confirm that the seller has the unencumbered right to transfer what they are purporting to sell.”RERA and IBC — Allottees as Financial Creditors
Where a real estate developer has entered corporate insolvency resolution proceedings, allottees who have paid towards the purchase of a residential unit are recognised as financial creditors under Section 5(8)(f) of the IBC, 2016. We represent allottees in CIRP proceedings before the NCLT — filing claims with the resolution professional, participating in the committee of creditors through an authorised representative, and assessing resolution plans for adequacy of treatment of allottee claims. The intersection of RERA rights and IBC rights requires counsel experienced in both frameworks, which our practice provides. Across 13 partners and 220+ professionals from offices in New Delhi, Mumbai, Chennai, Hyderabad, and Bangalore.
Frequently Asked Questions
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The Real Estate (Regulation and Development) Act, 2016 established the Real Estate Regulatory Authority in each state as the regulator for the real estate sector. Projects above the area thresholds specified under Section 3 of the Act — typically ongoing projects where the completion certificate has not been issued and projects of above a specified area — must be registered with the state RERA authority before any advertising or booking. The specific registration thresholds vary by state under the applicable state RERA rules.
Under the RERA, 2016, if a developer fails to deliver possession of the unit by the date specified in the registered agreement for sale, the allottee is entitled to claim interest on the amounts paid to the developer at the rate prescribed under the applicable state RERA rules for each month of delay — or to withdraw from the project and receive a refund of the amounts paid with interest. The allottee may file a complaint before the state RERA authority for these reliefs.
Yes. Under Section 5(8)(f) of the Insolvency and Bankruptcy Code, 2016, allottees who have paid amounts towards the purchase of a residential unit from a real estate developer are recognised as financial creditors of the developer. As financial creditors, they are entitled to participate in the corporate insolvency resolution process through an authorised representative, have voting rights in the committee of creditors proportionate to their aggregate claims, and are entitled to be treated in the resolution plan as a distinct class of creditors.
Stamp duty and registration obligations for property transactions in India are governed by state-specific legislation — the applicable stamp duty rate, the basis of valuation (market value or circle rate), and the registration formalities vary by state. All instruments relating to immovable property must be registered under the Registration Act, 1908. We advise on the stamp duty and registration implications of specific transactions in each state and on structuring transactions to manage stamp duty efficiently where permissible.
A joint development agreement is a contract between a landowner and a developer under which the landowner grants the developer the right to develop the land in exchange for a specified share of the constructed area or a revenue share. Key legal issues include: the nature of the interest granted to the developer (licence versus lease versus development right); the RERA registration obligation for the project; the stamp duty and capital gains tax treatment of the JDA; and the allocation of RERA compliance obligations between the landowner and developer.