Where RERA Stops: Tenants, Small Buildings and Other Deals the Act Does Not Reach in Bengaluru
The RERA Act has limits. Section 2(d) excludes tenants from the definition of allottee, Section 3(2) exempts small projects, projects completed before the Act and repairs without sales, and Section 3(1) applies to planning areas unless the Authority directs otherwise. This guide explains those limits for Bengaluru buyers and what remains under other laws.
RERA has become shorthand for buyer protection in Bengaluru, so much so that some buyers assume any property deal is covered. A family renting a flat in a new tower, a buyer picking up a unit in a small four-flat building, an owner whose old block is being repaired, a buyer of a villa plot in a layout well outside the city: each may hear the word RERA from a broker. Whether the Real Estate (Regulation and Development) Act, 2016 actually applies depends on the text, and the text has edges.
This guide sets out where the Act's own definitions and exemptions stop, what that means for a buyer on the wrong side of the line, and which other laws remain available. Knowing the limits is as useful as knowing the rights, because it tells you which questions to ask before you pay.
The short answer. The Act's definition of allottee in Section 2(d) excludes a person given a flat on rent. Section 3(2) exempts projects where land does not exceed five hundred square metres or apartments do not exceed eight across all phases, projects that received a completion certificate before the Act commenced, and renovation, repair or redevelopment that involves no marketing, advertising, selling or new allotment. Section 3(1) applies the registration requirement to projects in a planning area, though the Authority may direct registration of projects beyond it. Section 88 says the Act is in addition to, and not in derogation of, other laws. The trade-off: outside RERA a buyer still has other legal routes, but loses the Act's project-specific disclosures, timelines and dedicated forum.
Is a tenant protected by RERA?
Not as an allottee. In the text of the Act published by the Telangana regulator, Section 2(d) defines allottee as the person to whom a plot, apartment or building has been allotted, sold, whether as freehold or leasehold, or otherwise transferred by the promoter, including a person who subsequently acquires the allotment, but it does not include a person to whom such plot, apartment or building is given on rent.
The many sections that speak of rights of the allottee, from Section 19 to the delay remedy in Section 18, are written for allottees. A tenant's relationship with a landlord is governed by other law. Note the distinction in the definition: a leasehold sale is included, a rental is not.
Which projects do not need RERA registration?
Three categories, set out in Section 3(2). No registration is required where the area of land proposed to be developed does not exceed five hundred square metres or the number of apartments proposed to be developed does not exceed eight inclusive of all phases; where the promoter has received a completion certificate for a real estate project prior to commencement of the Act; or 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 under the project.
The proviso to clause (a) says the appropriate Government may reduce the five hundred square metre or eight apartment threshold. So the state's rules matter for small projects. Our earlier explainer on the small-project exemption goes deeper into this clause.
| Situation | What the Act says | Section |
|---|---|---|
| You rent a flat in a new project | A person given a flat on rent is not an allottee | 2(d) |
| Small building or layout | No registration where land is up to 500 square metres or up to eight apartments, all phases | 3(2)(a) |
| Project completed before the Act | No registration where a completion certificate was received before commencement | 3(2)(b) |
| Repair or redevelopment with no sale | No registration where there is no marketing, advertising, selling or new allotment | 3(2)(c) |
| Project outside a planning area | Section 3(1) applies in a planning area; the Authority may direct registration beyond it in the interest of allottees | 3(1) second proviso |
Two details in the wording matter. First, the eight apartment and five hundred square metre limits are counted inclusive of all phases, so the count covers every phase of the project together, not each phase alone. Second, the explanation to Section 3 says that where a project is developed in phases, every phase shall be considered a stand-alone real estate project and the promoter shall obtain registration for each phase separately. Read together, a buyer in a later phase of a big project should expect a separate registration number for that phase.
Were projects already under way when the Act began covered?
Yes, if they had no completion certificate. The first proviso to Section 3(1) says that projects ongoing on the date of commencement of the Act, for which the completion certificate had not been issued, required the promoter to apply to the Authority for registration within three months from the date of commencement. Section 3(2)(b) is the other side of the same line: no registration is required where the promoter had received a completion certificate before the Act commenced.
For a buyer looking at an older building today, the question is therefore when its completion certificate was issued. Ask for the completion certificate and its date before relying on the exemption.
What about projects outside the planning area?
The Authority can bring them in. Section 3(1) applies the bar on advertising, marketing, booking and selling without registration to projects in any planning area. Its second proviso says that if the Authority thinks necessary, in the interest of allottees, for projects developed beyond the planning area but with the requisite permission of the local authority, it may by order direct the promoter to register, and the Act shall apply from that stage of registration.
For a buyer looking at plots or villas on the edges of Bengaluru, the practical step is to check whether the project is registered and, if not, why not. Our report on RERA registration for projects on the city's outskirts covers this question.
What about a resale bought from an individual owner?
The definition reaches later acquirers, but the duties sit with the promoter. Section 2(d) includes the person who subsequently acquires the allotment through sale, transfer or otherwise. That brings some resale buyers within the definition of allottee, and with it the promoter's obligations, such as the defect window in Section 14(3), that relate to the original allotment.
The Act's duties in these sections are placed on the promoter. Checks on the individual seller's title, dues and documents remain the buyer's job in a resale, whatever the Act says about the original allotment. How the definition applies to a particular resale is decided on the facts.
If RERA does not apply, what remains?
Other laws. Section 88 says the provisions of the Act shall be in addition to, and not in derogation of, the provisions of any other law for the time being in force. The Act was not written to take away remedies that exist elsewhere.
Inside its own field, the Act does limit the civil courts. Section 79 says no civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which the Authority, the adjudicating officer or the Appellate Tribunal is empowered by or under the Act to determine. So for a project that is covered, the forum is the Authority; for a deal that is not, the forums under other laws remain the route.
Before relying on any route, take advice on your specific facts. The list below is a starting point, not a substitute.
How can you tell which side of the line you are on?
Ask three questions. Is the project registered, and if not, which exemption in Section 3(2) does the promoter rely on? Are you buying from the promoter, or acquiring an allotment from someone who bought from the promoter? Is the arrangement a sale or a rental? The answers usually settle whether the Act's protections are in play.
Registered projects carry a number you can check. PropNewz project pages show it where available; the page for Purva Park Hill in Mallasandra, for example, lists K-RERA number PRM/KA/RERA/1251/310/PR/220601/004946.
- Ask whether the project is registered, and match the number on the regulator's portal.
- If told no registration is needed, ask which clause of Section 3(2) applies and check the land area and unit count.
- Check whether the project lies within a planning area, and whether any direction to register has been issued.
- Confirm whether you are buying from the promoter or acquiring an existing allotment on resale.
- Remember that renting a flat does not make you an allottee under Section 2(d).
- Where the Act does not apply, do full due diligence on title, approvals and dues before paying.
- Take legal advice on which forum applies to your deal before filing any complaint.
Frequently asked questions
Does RERA apply to tenants?
No. Section 2(d) of the RERA Act defines allottee as a person to whom a plot, apartment or building is allotted, sold or otherwise transferred by the promoter, including later acquirers, and expressly excludes a person to whom such plot, apartment or building is given on rent.
Which projects are exempt from RERA registration?
Section 3(2) exempts projects where land does not exceed five hundred square metres or apartments do not exceed eight across all phases, projects with a completion certificate received before the Act commenced, and renovation, repair or redevelopment that does not involve marketing, advertising, selling or new allotment.
Can a project outside the planning area be brought under RERA?
Yes. The second proviso to Section 3(1) says the Authority may, if it thinks necessary in the interest of allottees, direct the promoter of a project developed beyond the planning area with local authority permission to register, and the Act then applies from that stage.
Does RERA replace other laws for buyers?
No. Section 88 of the RERA Act says its provisions are in addition to, and not in derogation of, any other law in force. Section 79 separately bars civil courts from matters that the Authority, adjudicating officer or Appellate Tribunal is empowered to determine under the Act.
Knowing where the Act stops helps you ask the right questions earlier. When a deal falls outside it, slow down and check more, not less. This is general buyer information, not legal advice.
Last updated 2026-10-27. PropNewz Team.
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