Buying a Flat in a Converted or Redeveloped Bengaluru Building? Where RERA Applies

An older independent house on a quiet Bengaluru street comes down, and within two years a four storey block stands in its place, with a few flats offered for sale through a local agent. Across town, an old commercial building is being refitted into compact apartments. In both cases the seller tells prospective buyers the same thing: this is "just a conversion" or "just a redevelopment", so RERA does not come into it. The Act takes a closer view. Converting a building into apartments for sale is expressly part of what RERA calls a real estate project, and the redevelopment exemption is narrower than it sounds.

The short answer. Section 2(zn) of the RERA Act defines a real estate project to include converting an existing building or a part of it into apartments for the purpose of selling some or all of them, and Section 2(zk) counts a person who does that as a promoter. Section 3(2)(c) exempts renovation, repair or re-development only where it does not involve marketing, advertising, selling or new allotment of any apartment, plot or building. Separately, Section 3(2)(a) exempts projects of up to 500 square metres of land or up to eight apartments, inclusive of all phases. The trade-off: small conversions can sit legitimately outside RERA, which keeps them simple for sellers, but a buyer in an exempt project does not get the registration filings and public project page that a registered project carries.

Does converting a building into flats count as a RERA project?

Yes, when the flats are for sale. Section 2(zn) of the Real Estate (Regulation and Development) Act, 2016 defines a real estate project as the development of a building or a building consisting of apartments, "or converting an existing building or a part thereof into apartments", or the development of land into plots or apartments, for the purpose of selling all or some of the apartments, plots or building. It includes the common areas, development works, improvements and structures, and the easements and rights that belong to them.

The person doing the conversion is a promoter under the Act. Section 2(zk)(i) says a promoter includes a person who constructs or causes to be constructed an independent building or a building of apartments, "or converts an existing building or a part thereof into apartments", for the purpose of selling all or some of the apartments to other persons, and includes the person's assignees.

So the label "conversion" does not take a project outside RERA. What matters is whether it is in a planning area, whether it is above the size limits, and whether any exemption actually applies.

What does the redevelopment exemption really cover?

Only works that do not involve selling. Section 3(2)(c) says registration is not required "for the purpose of renovation or repair or re-development which does not involve marketing, advertising selling or new allotment of any apartment, plot or building, as the case may be, under the real estate project." The Ministry of Housing and Urban Affairs' FAQs on RERA, dated July 2025, list the same three exemptions in Section 3(2), including this one in identical terms.

Read the condition carefully. The exemption is tied to the absence of marketing, advertising, selling or new allotment. A redevelopment that offers new flats to outside buyers involves selling and new allotment, so it does not fit this exemption on its plain wording. It may still be exempt under the size limits, but that is a separate test.

If you are an existing owner whose building is being redeveloped and you are receiving a flat in the new building, how these provisions apply to your own unit is a question to put to a lawyer with your redevelopment agreement in hand.

When is a small conversion legitimately exempt?

When it is below either size limit. Section 3(2)(a) says registration is not required where the area of land proposed to be developed does not exceed 500 square metres, or the number of apartments proposed to be developed does not exceed eight, inclusive of all phases. Our explainer on the 500 square metre and eight apartment exemption walks through that test.

The phrase "inclusive of all phases" matters for conversions done in stages. A seller who converts one floor now and another later is counting toward the same threshold. Ask for the total number of apartments planned in the building, not just the ones being sold today.

The Act also has a regional lever for the appropriate government. The proviso to Section 3(2)(a) says that if the appropriate government considers it necessary, it may reduce the threshold below 500 square metres or eight apartments, inclusive of all phases, for exemption from registration. Check whether the threshold that applies in Karnataka has been changed before relying on the national figures.

What should you ask for in an exempt or unregistered conversion?

The documents a registration filing would otherwise have shown you. For a registered project, Section 4(2) requires the promoter to file, among other things, an authenticated copy of approvals and the commencement certificate, the sanctioned plan, layout plan and specifications, and a declaration supported by an affidavit on legal title, encumbrances and the completion time. In an exempt project those filings are not on a public page, so ask the seller for the underlying documents directly.

Registration also brings ongoing duties that matter in an older structure. Section 11(1) requires a registered promoter to keep a project web page on the authority's website updated quarterly with bookings, approvals taken and pending, and the status of the project. Section 4(2)(l)(D) requires the registration application to declare that seventy per cent of amounts realised from allottees will be kept in a separate account in a scheduled bank for construction and land cost.

To see what a registered record looks like before you compare, look up a registered project's number. Our page for Purva Meraki in HSR Layout, for instance, carries a K-RERA registration number you can search on the regulator's website.

Defects after handover are covered as well. Section 14(3) says that if any structural defect, or any other defect in workmanship, quality or provision of services, is brought to the promoter's notice by the allottee within five years from the date of handing over possession, the promoter must rectify it without further charge within thirty days, failing which the aggrieved allottees are entitled to appropriate compensation. In a building where old and new construction meet, that duty is worth knowing about.

Occupation is a separate certificate. Section 2(zf) defines an occupancy certificate as the certificate, by whatever name called, issued by the competent authority permitting occupation of a building, as provided under local laws, which has provision for civic infrastructure such as water, sanitation and electricity. A converted building still needs the right permissions for its new use. Our guide to OC versus CC under RERA explains what each certificate proves.

What if the seller should have registered but did not?

The Act treats it seriously. Section 3(1) says no promoter shall advertise, market, book, sell or offer for sale any apartment in a real estate project in a planning area without registering it, and Section 59(1) says a promoter who contravenes Section 3 is liable to a penalty which may extend up to ten per cent of the estimated cost of the project.

A buyer who suspects a conversion has been sold without a required registration can raise it with the regulator. Section 31(1) says any aggrieved person may file a complaint with the authority or the adjudicating officer for any violation of the Act against a promoter, allottee or real estate agent.

How do the scenarios compare?

This table sets out how the Act treats common conversion and redevelopment cases.

What should you check before buying in a converted building?

Use this list before you pay anything beyond a token.

1. Ask whether the project is registered with K-RERA and get the number.
2. If not, ask which exemption in Section 3(2) the seller relies on.
3. Ask for the total land area and total apartments planned, across all stages.
4. Ask for the building approval that covers the converted use.
5. Ask for the occupancy certificate or the stage of its application.
6. Read the title documents and any declaration on encumbrances.
7. Keep any advertisement or listing that offered the flats for sale.

Frequently asked questions

Is converting a building into flats covered by RERA?

Yes, when the flats are sold. Section 2(zn) of the RERA Act defines a real estate project to include converting an existing building or part of it into apartments for sale, and Section 2(zk) treats the person doing it as a promoter. Registration then depends on the planning area and the Section 3(2) exemptions.

Are redevelopment projects exempt from RERA registration?

Only some. Section 3(2)(c) exempts renovation, repair or re-development that does not involve marketing, advertising, selling or new allotment of any apartment, plot or building. A redevelopment that sells new flats to outside buyers does not meet that condition, though it may still be exempt if it is within the size limits.

What size of conversion is exempt from RERA?

Section 3(2)(a) of the RERA Act exempts projects where the land does not exceed 500 square metres or the apartments do not exceed eight, inclusive of all phases. Its proviso lets the appropriate government reduce those thresholds, so check the limit that applies in Karnataka before relying on the national figures.

Can I complain if a conversion was sold without RERA registration?

Yes. Section 31(1) of the RERA Act lets any aggrieved person file a complaint with the authority or the adjudicating officer for any violation of the Act. Section 59(1) allows a penalty of up to ten per cent of the estimated project cost for contravening the registration requirement in Section 3.

Last updated 2026-10-21. PropNewz Team.