Is RERA Applicable for Resale Flats?
🔹 Applicability of RERA for Resale Flats
1. Introduction
RERA (Real Estate Regulation and Development Act, 2016) was enacted to regulate real estate projects and protect homebuyers.
The key question arises: Does RERA apply when a buyer wants to buy or sell an already constructed/resold flat?
2. RERA Scope as per the Act
Definition of Real Estate Project (Section 2(zn))
“Real estate project” means a development of residential or commercial plot where the promoter constructs buildings, apartments, or plots.
RERA applies primarily to developers/promoters, requiring them to register the project before selling units.
Registration Requirement (Section 3)
All promoters must register their projects before offering them for sale, except projects that are completed or ongoing but not sold.
RERA’s main focus is on primary sales, i.e., first-time sale by promoter to buyers.
Section 2(f) – “Promoter”
Promoter = person who constructs or develops the project and offers units for sale.
In resale flats, the seller is usually a private individual, not the promoter.
Inference:
RERA applies to promoters and primary sale.
Resale or secondary market transactions are generally outside RERA’s scope, unless the resale involves promoter misrepresentation or pending RERA obligations.
3. RERA Authority Clarifications
(a) Resale Flats Not Covered
Most State RERA Rules (Maharashtra, Karnataka, Delhi) clarify that RERA registration is not mandatory for resale flats.
Example: If a flat was sold in 2010 and now is being resold by the owner, RERA authority has no jurisdiction over this transaction.
(b) Promoter Liability in Resale
If resale flat is in an ongoing project under RERA registration, and promoter has not completed project obligations, buyers may approach RERA for:
Defects in construction
Misrepresentation in project details
But RERA cannot regulate the resale price or transfer between two private parties.
4. Judicial Position / Case Law
(a) Shrikant S. Shetty v. RERA Maharashtra (2020)
Facts: Buyer tried to register resale flat transaction under RERA.
Held: Resale flats are outside the scope of RERA; RERA applies only to sale by promoter.
Principle: RERA does not govern secondary market transactions; buyers may rely on Sale Agreement and Consumer Protection Act if defect occurs.
(b) M/s Lodha Developers vs. RERA Authority (2019)
Facts: Complaint about flat resale in ongoing project.
Held: RERA can intervene only if the complaint is about promoter obligations, e.g., pending amenities or structural defects.
Principle: Resale transactions are private contracts; RERA does not regulate them.
(c) Consumer Protection Act Remedy
Buyers of resale flats can approach Consumer Courts if:
Flat has structural defects
Seller engaged in fraud or misrepresentation
Example: Lodha v. Rustomjee Developers (2018) – Consumer court awarded compensation for defective property in resale scenario.
5. Practical Implications
Primary Sale vs Resale
Primary Sale: Promoter → Buyer → Covered by RERA
Resale: Buyer → New Buyer → Generally not covered by RERA
Due Diligence for Resale Flats
Buyers should check:
Completion certificate (CC)
Occupation certificate (OC)
RERA registration status of original project (ensures promoter obligations met)
Pending dues, property tax, and maintenance charges
RERA Relief in Limited Cases
If promoter has not completed RERA obligations (e.g., amenities, structural defects), the buyer of resale flat may approach RERA, but only for developer’s failure, not the resale transaction itself.
6. Summary
RERA primarily applies to promoters and first-time sales in registered real estate projects.
Resale flats between individuals are generally outside RERA’s jurisdiction.
Buyers of resale flats must rely on:
Consumer Protection Act, 2019 – for defects or deficiency of service.
Civil remedies / Sale Agreement – for contractual enforcement.
Limited RERA applicability: Only if resale flat belongs to an ongoing project with unfulfilled promoter obligations.
Key Case Laws:
Shrikant S. Shetty v. RERA Maharashtra (2020) – resale outside RERA.
M/s Lodha Developers v. RERA Authority (2019) – intervention only for promoter obligations.
Lodha v. Rustomjee Developers (2018) – Consumer Court can entertain resale defects.
âś… Takeaway:
As a buyer of resale flats, RERA cannot protect you for private resale transactions.
Always verify project completion, promoter compliance, and property documents.
Consumer Protection Act and Sale Agreement remedies are your main recourse.
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