Rahul Sharma (name changed), a 30-year-old prospective homebuyer, recently visited a completed apartment project. During his visit, he noticed that the project did not display a Real Estate Regulatory Authority (RERA) registration number. When he inquired, the developer explained that no RERA registration was obtained because the project was neither marketed nor sold before receiving the Occupation Certificate (OC).
MahaRERA update: Under Section 3 of the Real Estate (Regulation and Development) Act, 2016 (RERA), no developer is permitted to advertise, market, book, or sell any property in a real estate project without first registering. (Picture for representational purposes only) (Mehul R Thakkar/ HT)
What does Section 3 of the RERA Act say
Under Section 3 of the Real Estate (Regulation and Development) Act, 2016 (RERA), no developer is permitted to advertise, market, book, or sell any property in a real estate project without first registering it with the respective State Real Estate Regulatory Authority.
Additionally, all ongoing projects that had not received a completion certificate when the Act came into force were required to register with the Authority within three months. In Maharashtra, the RERA Authority (MahaRERA) was established in May 2017.
Furthermore, Section 3 empowers the Authority to direct a developer to register a project if it believes doing so would serve the best interests of homebuyers.
When is RERA registration not required?
RERA registration is not mandatory in the following cases:
Small projects: Where the land area does not exceed 500 square metres or the total number of apartments does not exceed eight units, unless the respective state government reduces this limit.
Completed projects: Projects that have already received a completion certificate before the commencement of RERA.
Renovation or redevelopment: Projects involving renovation, repair, or redevelopment that do not entail marketing, advertising, selling, or allotting new units.
Also Read: Over 29,000 complaints filed by homebuyers against 5,500 real estate projects in Maharashtra: MahaRERA data
RERA registration is not required for selling post OC
According to legal experts, there is still ambiguity over whether developers can sell projects without RERA registration once an occupation certificate (OC) has been obtained.
They point out that MahaRERA has, in earlier orders, indicated that a RERA registration number is not required for advertising completed projects.
In April 2025, MahaRERA clarified that developers may advertise projects without mentioning a RERA registration number, provided the project is complete and has received an OC. However, experts note that this clarity has largely been confined to advertising, leaving questions around selling and marketing practices open to interpretation.
“If all sales begin only after the OC has been granted, and if the OC pre-dates RERA enforcement, the project is exempt from RERA registration. However, if the sale of units commences only after obtaining the Occupation Certificate (OC) and the OC is received after the enforcement of RERA, a grey area arises regarding whether such a project is required to obtain RERA registration. Various courts, authorities, and tribunals have offered differing interpretations on this issue,” said Advocate Sunil M. Kewalramani, proprietor at Sunil M Kewalramani and Associates.
Kewalramani, who practices at Maharashtra RERA, opined that it should be mandatory for developers to procure RERA registration even if they want to sell after OC.
“In my view, if sales begin only after OC and the OC is post-RERA enforcement, then RERA registration must be made mandatory, as the developer must comply with various obligations post-OC, such as conveyance of the plot and a 5-year structural defect warranty, among others,” Kewalramani said.
Also Read: Maharashtra Housing Policy 2025: A separate RERA-like law for real estate redevelopment projects proposed
Here’s what homebuyers should keep in mind
According to legal experts, homebuyers should exercise proper due diligence and have the project independently reviewed before purchasing an apartment in any development that lacks RERA registration.
“Section 3 of RERA restricts advertising, marketing, booking/selling, etc, without obtaining RERA registration. Exemption from registration is only provided to the project having a land area of less than 500 sq m or fewer than eight apartments or projects having a completion certificate prior to commencement of the Act,” said CA Vinit Gada, who practices with MahaRERA.
Also Read: MahaRERA rules out partial deregistration of real estate project after developer cites financial non-viability
“However, there is nothing like RERA registration is not required for OC received projects after commencement of the Act mentioned in the RERA Act. Hence, if there is a project with OC but not having RERA registration, homebuyers should do their own due diligence and get things scrutinised,” Gada added.
