Buying a Landowner's Share Flat in a Bengaluru JDA Project? RERA Treats Both Parties as Promoters

Picture two flats on the same floor of a new tower in North Bengaluru. One was bought from the developer. The other, identical in size and finish, was bought from the family that owned the land and handed it over under a joint development agreement, keeping a share of the flats in return. The second flat was cheaper. Its buyer now wonders whom to hold responsible if possession is late or the walls crack.

The short answer. Under the Explanation to Section 2(zk) of the RERA Act, as set out in the Ministry of Housing and Urban Affairs' FAQs, where the person who constructs the building and the person who sells the apartments are different, both are deemed to be promoters and are jointly liable for the functions and responsibilities under the Act. A buyer of a landowner's share flat in a registered Bengaluru project therefore deals with a promoter under RERA, not merely a private seller. The trade-off: joint liability widens who you can hold responsible, but you still need the project's RERA registration, the joint development agreement's allocation of flats and an executed agreement for sale to use it.

Who counts as a promoter in a joint development project?

Both parties. The Ministry of Housing and Urban Affairs' FAQs on the RERA Act, dated July 2025, quote the Explanation to Section 2(zk): where the person who constructs or converts a building into apartments or develops a plot for sale and the persons who sell apartments or plots are different persons, both of them shall be deemed to be the promoters and shall be jointly liable as such for the functions and responsibilities specified under the Act or the rules and regulations made under it.

In an arrangement like the one described above, the landowner contributes the land, the developer builds, and each sells the flats allocated to it. The Explanation means that a landowner who sells flats is not outside the Act just because it did not build them, and a developer is not outside the Act for flats it did not sell.

The FAQs add that the definition of promoter covers both private and public bodies. Development authorities and housing boards, when involved in sale, are also covered. For Bengaluru buyers, the point is consistent: whoever is selling you a flat in a registered project carries promoter obligations.

Why does joint liability matter to a landowner's share buyer?

Because the Act's main remedies run against the promoter. Section 18, the FAQs say, gives an allottee whose possession is delayed the right to withdraw and claim a full refund with interest and compensation, or to stay and receive interest for every month of delay. Section 14, as the FAQs explain it, makes the promoter liable for five years from possession for structural defects or other specified defects, with a duty to rectify within 30 days.

If only the builder were a promoter, a buyer who paid the landowner might struggle to say who owed the refund or the repair. Joint liability under the Explanation answers that question in the buyer's favour. The functions and responsibilities under the Act attach to both, jointly.

That does not mean every dispute is simple. Which party collected your money, and under what document, still matters to how a claim is framed. But the starting position is that a landowner's share flat is not a second class purchase under RERA. We covered the document checks for these flats in our guide to verifying a joint development flat in Bengaluru.

What must be true of the project before you pay?

It must be registered. The FAQs say that under Section 3(1), the promoter is required to register the project with the Real Estate Regulatory Authority before any advertising, marketing, booking, selling, offering for sale or inviting persons to purchase in the project. That applies to the landowner's share as much as the developer's, because both are promoters.

The FAQs also set out the exemptions under Section 3(2): where the land proposed to be developed does not exceed 500 square metres or the number of apartments does not exceed eight, inclusive of all phases; where a completion certificate was received before the Act commenced; and renovation or redevelopment that does not involve marketing, advertising, selling or new allotment. Check the project's size against those thresholds rather than assume.

The penalty for skipping registration is steep. Under Section 59, the FAQs say, a promoter who fails to register when obliged to is liable to a penalty of up to ten percent of the estimated cost of the project, with a further fine of up to ten percent or imprisonment of up to three years, or both, for continued default.

How do the key RERA protections apply to a landowner's share flat?

The table below sets out five provisions, what the MoHUA FAQs say about each, and what each means for a buyer who pays the landowner rather than the developer:

Section 15 deserves a note. The FAQs say a promoter cannot transfer or assign its majority rights and liabilities in a project to a third party without the prior written consent of two thirds of the allottees and the Authority. Apartments held by the promoter are excluded from the count, and each allottee has one vote regardless of how many apartments they hold. In a joint development, that protects buyers if the developer seeks to hand the project to someone else midway.

What should the agreement for sale say?

It should follow the state's prescribed form. The FAQs say that under Section 13(2), the appropriate government is required to specify through rules the agreement for sale to be entered into between the promoter and the allottee, and that the agreement is binding on the parties. Additional provisions can be inserted, but the terms of the agreement for sale cannot be contrary to the provisions of the Act and the rules.

For a landowner's share flat, read the agreement for who signs as promoter, how the landowner's share is identified, and who undertakes possession and defect obligations. Section 13 also says a promoter cannot accept more than ten percent of the cost of the apartment as an advance payment or application fee without first executing an agreement for sale. A landowner asking for a large payment on a simple receipt is asking for something the Act does not allow.

Whether you are looking at a joint development tower or a project such as Adarsh Urbanite in Bellandur, the same documents settle who your promoter is and what they owe you.

What happens if the project's registration is revoked?

The Act has a fallback, and it involves buyers. The MoHUA FAQs say that under Section 7 the Authority has the power to revoke a project's registration for specified violations, but that revocation is envisaged as a last resort and can only be done after giving a reasonable opportunity of being heard.

If a project is revoked, the FAQs say Section 8 allows the Authority, in consultation with the appropriate government, to take action to carry out the remaining development works through the competent authority, the association of allottees or in any other manner it determines. In that scenario, the association of allottees has the first right of refusal for carrying out the remaining works.

For a landowner's share buyer, this is another reason to be a recognised allottee from the start, with an executed agreement for sale and a clear payment record. If the buyers ever need to act together, the people who can prove their allotment are the ones with a voice.

What should you check before booking a landowner's share flat?

Work through this list before any money changes hands:

1. Find the project's RERA registration number and confirm the registration covers the tower and flat you are buying.
2. Ask for the joint development agreement or the registered document that allocates your flat to the landowner's share.
3. Confirm who will sign the agreement for sale as promoter, and whether both parties sign.
4. Do not pay more than ten percent of the flat's cost before an agreement for sale is executed.
5. Read the possession date and the delay terms in the agreement for sale.
6. Check how defect obligations after possession are allocated between landowner and developer.
7. Keep receipts showing exactly which party received each payment.

A lawyer's title search remains essential, because a joint development adds a layer of documents between the land and your flat. For more on how landowner share sales work in practice, see our earlier guide to landowner share flats in Bengaluru JDA projects.

Frequently asked questions

Is the landowner a promoter under RERA in a joint development?

Yes, if the landowner sells flats. MoHUA's FAQs quote the Explanation to Section 2(zk): where the person who constructs and the persons who sell are different, both are deemed to be promoters and are jointly liable for the functions and responsibilities under the RERA Act and its rules.

Can I claim a delay refund if I bought from the landowner's share?

Section 18 remedies run against the promoter, and the Explanation to Section 2(zk) makes the builder and the seller jointly liable as promoters. How a claim is framed depends on your documents, so keep your agreement for sale and payment receipts showing which party received each payment.

How much can a landowner take as booking money?

Section 13 of the RERA Act, as explained in MoHUA's FAQs, says a promoter cannot accept more than ten percent of the cost of the apartment as an advance payment or application fee without first executing an agreement for sale with the allottee. As a promoter, a selling landowner is bound by it.

Can the developer hand the project to another company?

Not freely. MoHUA's FAQs say Section 15 bars a promoter from transferring or assigning its majority rights and liabilities in a project to a third party without the prior written consent of two thirds of the allottees and the Authority. Promoter held apartments are excluded from the count.

Last updated 2026-10-20. PropNewz Team.