RERA Simplified Series #2: Definitions of RERA (A to E)

RERA Simplified Series #2: Definitions of RERA (A to E)

In the first blog in this series, we spoke about the milestone dates and a brief history of RERA.

Let’s take a look at the various definitions (words starting from A to E) under RERA.


The Advertisement is issued by the builder or real estate developer in print, social media, and public domain in the form of a brochure, notice, circular, or any other marketing material. It is an offer for sale of a plot, building, apartment where the builder collects a token advance or deposit from the buyers.

Agreement for Sale refers to the agreement between the promoter and the allottee.

Allottee is anyone who has been allotted the plot, apartment or building by the promoter or is any person who buys the plot, apartment or building from another allottee through sale or transfer.

Allottee does not include a person who has taken the apartment or building on rent.

Apartment is a separate and self-contained part of any immovable property. It has one or more rooms or enclosed spaces and is located on one or more floors. It can be used for a residential or commercial purpose such as residence, office, shop, showroom, godown, and for carrying on any business, occupation, profession, and so on.

An Architect is any professional architect registered under the provisions of the Architects Act, 1972.


The Building is a structure that is used for residential, commercial, or for business or professional purposes.


Carpet area is the net usable floor area of an apartment. It excludes balconies, the area covered by external walls, the area under services shafts, and open terrace area. The balcony and open terrace area available for the exclusive use of the allottee, however, they are not part of the carpet area.

Common Areas include the following areas of a building:

  • The entire land where the real estate project is developed.
  • All the staircases, lifts, lobby areas of staircase and lift, fire exits, and common entrances of the buildings.
  • Open parking areas, play areas, parks, jogging tracks, common basements, terrace, and any common storage spaces.
  • The houses to accommodate the building’s security and community service personnel.
  • The central services installations used by all the people in the building or society such as electricity, water, gas, sanitation, air-conditioning, the system for water conservation and renewable energy.
  • The water tanks, sumps, motors, fans, compressors, ducts, and all apparatus connected with installations for the common use of the residents in the building.
  • The community and commercial facilities as provided in the real estate project.

Completion Certificate is given by the competent authority certifying that the real estate project is constructed as per the approved and sanctioned plan and specifications of the local civic body.


External Development Works is the development work done outside the project or building for the benefit of the project or building and needs to be approved by the local civic body. It includes the laying of roads, landscaping, water supply, sewerage, drainage system, an electricity substation, transformers, and solid waste management.

We will bring you more of the RERA Central Act 2016 in the next article.

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