Last reviewed: 25 September 2026. Every promoter eventually asks the same question before a launch: do I actually need to register this project? Section 3(2)(a) of the RERA Act answers it as an exemption: no registration is required "where the area of land proposed to be developed does not exceed five hundred square meters or the number of apartments proposed to be developed does not exceed eight inclusive of all phases". How that "or" is read decides many small projects. In Maharashtra, MahaRERA Order No. 62/2024 (22 October 2024) treats the two limits as alternative exemptions, so a project needs registration only when it crosses both. Where registration is needed, it has to be in place before a single advertisement, hoarding, WhatsApp brochure, or booking, not just before possession.
RERA Applicability Checker
Applies the Section 3(2)(a) limits as MahaRERA reads them — a project is exempt if either the land is 500 sq m or less or there are 8 or fewer apartments across all phases.
How the two limits work, illustrated (MahaRERA reading)
| Project | Land area | Units (all phases) | Registration required? |
|---|---|---|---|
| Compact plot, dense layout | 450 sq m | 12 units | No under MahaRERA's reading — land is within 500 sq m |
| Large plot, few large units | 700 sq m | 4 units | No under MahaRERA's reading — 8 or fewer apartments |
| Small plot, few units | 400 sq m | 6 units | No — within both limits |
| Just above both | 520 sq m | 9 units | Yes — crosses both |
The first two rows are where readings differ. Some promoters and practitioners have treated crossing either limit as enough to require registration, and authorities in some other states read the test that way. If your project sits near either limit, or you sell outside Maharashtra, get confirmation before relying on the exemption.
Why the phase rule matters more than it looks
A developer planning a 20-unit project sometimes tries to structure it as three phases of 6-7 units each, hoping each phase individually stays under the 8-unit line. That does not work: Section 3(2)(a) counts apartments "inclusive of all phases", so the project is tested on its full 20 units. Once registration is needed, the Explanation to Section 3 treats every phase as a standalone real estate project that is registered separately. Structure phasing around genuine construction/sale logistics, not around the threshold.
What non-registration actually exposes you to
Advertising, marketing or booking an unregistered project when registration was required is a direct violation from day one of that activity — not something that only matters at possession. Under Section 59(1), the penalty can be up to 10% of the estimated cost of the project. Under Section 59(2), continued non-compliance can lead to imprisonment of up to three years, or a further fine of up to 10% of the estimated cost, or both. If you're close to either limit, the safer default is to take advice before launch rather than argue the exemption after the fact.
Worked example: a redevelopment project with fresh sales
A housing society redevelops its existing building, offering each of its 15 existing members a new flat and additionally constructing 10 extra flats to sell to outside buyers to fund the project. Because this involves marketing and selling new units to outside buyers — not just handing existing members their rebuilt flats — the renovation exemption in Section 3(2)(c) does not apply. With 25 total units, above the 8-apartment limit, and a plot larger than 500 sq m, the developer/promoter needs MahaRERA registration before advertising or booking the outside-buyer units. Redevelopment projects with a fresh-sale component like this are exactly where the exemption gets misapplied most often — treat the whole project as assessable rather than assuming the members' portion is automatically exempt, and get the specific structure confirmed with us before relying on any exemption.
Frequently asked questions
Is it 500 sq m OR 8 apartments, or does a project need to cross both?
Section 3(2)(a) of the RERA Act is written as an exemption: no registration is required "where the area of land proposed to be developed does not exceed five hundred square meters or the number of apartments proposed to be developed does not exceed eight inclusive of all phases". In Maharashtra, MahaRERA Order No. 62/2024 (22 October 2024) reads these as alternative exemptions: a project on 500 sq m or less is exempt irrespective of the number of units, and a project with 8 or fewer apartments inclusive of all phases is exempt irrespective of land area. On that reading, registration is mandatory only when both limits are crossed. Authorities in some other states read the test differently, so get confirmation for borderline cases before relying on the exemption.
We're building in phases — does each phase need its own registration?
The unit count for the exemption is taken inclusive of all phases (Section 3(2)(a)), so splitting a project into small phases does not bring it under the 8-apartment limit. Once registration is needed, each phase is treated as a standalone real estate project and is registered separately (Explanation to Section 3).
We're only renovating an existing building, not selling new units — do we still need to register?
No — Section 3(2)(c) of the RERA Act exempts renovation, repair or re-development that does not involve marketing, advertising, selling or new allotment of any apartment, plot or building. The moment that redevelopment starts involving fresh sale or allotment of units (a common scenario in redevelopment projects offering additional units to outside buyers, not just existing society members), the exemption stops applying and registration becomes mandatory if the project is otherwise above the limits.
What happens if we advertise or book units before registering?
It's a direct violation — RERA requires registration before any advertisement, marketing, brochure, hoarding, WhatsApp promotion, or booking, not just before possession or sale deed execution. Under Section 59(1), a promoter who fails to register when required is liable to a penalty of up to 10% of the estimated cost of the project. Under Section 59(2), continued non-compliance can lead to imprisonment of up to three years, or a further fine of up to 10% of the estimated cost, or both.
Does RERA registration apply only to residential projects?
No — the 500 sq m / 8-apartment limits apply to both residential and commercial real estate projects. A commercial project (office space, retail, mixed-use) that is not exempt needs the same mandatory registration as a residential apartment project.
Our project is exempt — is there any benefit to registering voluntarily?
It can help with buyer confidence and financing — many banks and buyers now expect or explicitly ask for a RERA registration number even on smaller projects, since it signals structured escrow-account handling of buyer payments and standardised disclosure. It's not mandatory for an exempt project, but for some developers it's worth the modest extra compliance for the credibility it buys with buyers and lenders.
Who actually needs to register — the builder, the landowner, or both?
The 'promoter' as defined under RERA, which typically means whoever is developing, constructing, marketing and selling the project — this can be the builder, a landowner developing their own land, or a joint-development arrangement between the two, depending on how the specific project is structured. In joint-development and redevelopment arrangements, get the promoter designation clarified in the development agreement itself so registration responsibility and liability are unambiguous.
We handle MahaRERA project registration, promoter compliance (QPR, Form 5) and notice/complaint responses end to end.
RERA compliance services Talk to usThis checker reflects RERA applicability rules as reviewed on 25 September 2026, applying Section 3(2) of the Real Estate (Regulation and Development) Act, 2016 as read by MahaRERA in Order No. 62/2024. Other states' authorities may read the Section 3(2)(a) test differently. Promoter designation in joint-development arrangements and state-specific procedural rules add complexity this tool doesn't model — confirm your exact project structure with us before a launch decision. Related reading: MahaRERA Project Registration: Process, Fees, Timeline, Documents Required for MahaRERA Project Registration and MahaRERA Compliance for Promoters.