Buying the Landowner's Share in a JDA Project? How RERA Makes Builder and Seller Jointly Liable

Not every flat in a Bengaluru apartment project is necessarily sold by the builder. Under a joint development arrangement, a landowner may contribute the land and take a share of the finished flats in return. Those landowner-share flats can then come to market through the landowner, a relative, or a local broker, sometimes at a price below the developer's sales office. The buyer sees a discount. The question to ask first is: if this flat is delayed or defective, who do I complain against?

The Real Estate (Regulation and Development) Act, 2016 answers that in a single Explanation tucked into its definition of "promoter". It is one of the most practically useful sentences in the Act for anyone buying a landowner-share flat.

The short answer. The Explanation to Section 2(zk) of the RERA Act says that where the person who constructs a building and the person who sells apartments are different persons, both shall be deemed to be the promoters and shall be jointly liable for the functions and responsibilities under the Act, rules and regulations. Section 2(zk)(v) also counts as a promoter anyone who claims to act as the holder of a power of attorney from the landowner. So a landowner selling their share in a registered project steps into the promoter's shoes alongside the developer. The trade-off: joint liability gives you two parties to pursue, but only if the paperwork shows clearly who sold you the flat, under which registration, and on what terms.

Who counts as a promoter under RERA?

Section 2(zk) of the Gazette of India text of the RERA Act lists several categories. The first is a person who constructs or causes to be constructed a building consisting of apartments for the purpose of selling all or some of the apartments to other persons, including his assignees. Clause (v) adds any other person who acts as a builder, coloniser, contractor, developer or estate developer, or claims to be acting as the holder of a power of attorney from the owner of the land on which the building or apartment is constructed. Clause (vi) adds any other person who constructs any building or apartment for sale to the general public.

Then comes the Explanation: 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.

Why does joint liability matter for a landowner-share flat?

Because it closes the gap a buyer would otherwise fall into. Without it, a landowner might say the delay is the builder's fault, and the builder might say it has no contract with you. The Explanation treats both as promoters for the Act's purposes. That means the promoter obligations in Section 11, the refund and compensation remedies in Section 18, and the complaint route in Section 31 are pointed at both.

In practice, joint liability is about who you can name. If possession is late or the flat does not match the sanctioned plan, a complaint can name both the developer and the landowner who sold to you. Each may argue internally about who was at fault under their own development agreement, but that private arrangement is between them. For the buyer, the Act's starting point is that both carry the promoter's responsibilities.

It also changes how you should read the definition of allottee. Section 2(d) defines an allottee as the person to whom an apartment has been allotted, sold or otherwise transferred by the promoter, and includes a person who subsequently acquires the allotment through sale, transfer or otherwise, but does not include a tenant. A landowner who is deemed a promoter is, for that purpose, selling to an allottee.

The table compares the two routes to the same building.

What should the registration record show?

Section 4(2)(l)(A) requires the promoter's affidavit at registration to state that it has a legal title to the land on which the development is proposed, along with legally valid documents with authentication of such title, if such land is owned by another person. In a joint development, the land may be owned by someone other than the developer, so this is where the arrangement should surface.

Section 11(1) requires the promoter to enter all details of the project provided under Section 4(2) on its web page on the Authority's website for public viewing. Before you buy a landowner-share flat, read that record and look for the landowner's name and the documents relied on. We explained how to read a Bengaluru project's records in our guide to checking a project's RERA records.

If the project is not registered, Section 3(1) says no promoter shall advertise, market, book, sell or offer for sale any apartment in a project in a planning area without registering it. That applies to the landowner as much as the developer, given the Explanation.

What can go wrong, and how do you guard against it?

Three risks deserve attention in shared-ownership deals. The first is allocation: which flats belong to the landowner and which to the developer. If the same unit is offered by both, or is not clearly in the landowner's share, you are buying a dispute. Ask for the document that allocates units between them.

The second is payment routing. Section 4(2)(l)(D) requires 70 percent of the amounts realised for the project from allottees to be deposited in a separate account for construction and land cost. Ask in writing whether your payments for a landowner-share flat will go into that project account, and keep the answer. The third is a different possession timeline. Your agreement should state the possession date for your flat and the interest rates payable on default, which Section 13(2) requires an agreement for sale to specify.

Title risk is the backdrop to all three. If you are concerned about the land history in a joint development, our explainer on RERA Section 18(2) and defective title compensation covers the remedy that has no limitation bar.

Does a power of attorney holder count too?

Yes, on the Act's wording. Section 2(zk)(v) includes any person who claims to be acting as the holder of a power of attorney from the owner of the land on which the building or apartment is constructed. If a relative or agent of the landowner is selling under a power of attorney, they fall within the definition of promoter, and the Explanation's joint liability applies alongside the developer.

A power of attorney does not change what you need to see: the project's registration number, a written agreement for sale, and a clear link between the seller and the allocated unit. Ask for a copy of the power of attorney and check that it covers sale of the specific flat.

For a sense of what a registered Bengaluru project profile looks like before you compare a landowner-share offer, see our page on Sidvin Serenity 2 in Hoskote.

What should you do before paying for a landowner-share flat?

A lower price is only a bargain if the paperwork is as strong as a developer-share purchase.

1. Confirm the project's RERA registration number and that your flat is within the registered project, since Section 3(1) bars selling an unregistered project in a planning area.
2. Read the promoter's Section 4(2)(l)(A) title declaration on the RERA web page and look for the landowner's documents.
3. Ask for the document that allocates flats between the landowner and the developer, and check that your unit is in the landowner's share.
4. If the seller holds a power of attorney, get a copy and check that it covers sale of your specific flat.
5. Insist on a written agreement for sale that names the seller, quotes the registration number, states the possession date and the default interest rates.
6. Pay no more than 10 percent before the agreement for sale is registered, as Section 13(1) requires.
7. Ask in writing whether your payments will go into the project's separate account under Section 4(2)(l)(D), and keep the reply.

Frequently asked questions

Is a landowner selling flats in a joint development a promoter under RERA?

The Explanation to Section 2(zk) of the RERA Act says that where the person who constructs a building and the person who sells apartments are different persons, both shall be deemed to be the promoters and jointly liable for the functions and responsibilities under the Act, rules and regulations.

Can I complain against both the builder and the landowner?

Under the Explanation to Section 2(zk), both are deemed promoters and jointly liable for the functions and responsibilities under the Act. Section 31(1) lets any aggrieved person file a complaint with the Authority or adjudicating officer against any promoter for violation of the Act, rules or regulations.

Does a person selling under a power of attorney count as a promoter?

Section 2(zk)(v) includes any person who claims to be acting as the holder of a power of attorney from the owner of the land on which the building or apartment is constructed. Ask for a copy of the power of attorney and check it covers sale of your flat.

How much can I pay before signing the agreement for a landowner-share flat?

Section 13(1) says a promoter shall not accept more than ten per cent of the cost of the apartment as an advance or application fee without first entering into a written agreement for sale and registering it. Since the selling landowner is a deemed promoter, the same cap applies.

Last updated 2026-11-14. PropNewz Team.