What Section 3 Actually Says
Section 3 prohibits a promoter from advertising, marketing, booking, selling, offering for sale, or inviting people to purchase any plot, apartment or building in a real estate project unless the project is registered with the Real Estate Regulatory Authority. In Karnataka, that authority is K-RERA.
The Act exempts certain cases, such as small projects where the land area does not exceed 500 square metres or the number of apartments does not exceed eight, projects that already had a completion certificate before the Act came into force, and projects limited to renovation or repair that do not involve marketing or sale of new units. Anything outside these exemptions needs registration.
For a buyer, the practical meaning is simple: if a builder is taking booking money or advertising launch offers, a RERA registration number should already exist and be quoted in the advertisement.
Disclosures at Registration — Section 4
When a promoter applies for registration, Section 4 requires the filing of key details about the promoter and the project. These include the promoter’s background and past projects, project details, the sanctioned layout plan and specifications, the status of the land and title, the schedule for completing the project, and a declaration supported by an affidavit about legal title and the time period for completion.
Section 4 also requires the promoter to deposit seventy per cent of the amounts realised from buyers into a separate bank account, to be used only for construction and land costs of that project. This protects the money you pay from being diverted to other ventures.
Continuing Disclosure — Section 11
Registration is not a one-time exercise. Section 11 requires the promoter to publish project information on the RERA website, including sanctioned plans, layout plans, the stage-wise time schedule and the status of the project, and to keep this updated, including quarterly updates on bookings and progress of work.
Section 11 also requires the promoter to make the advertisement or prospectus consistent with the registered information and to disclose the registration number. If you see a brochure that gives different possession dates or specifications from the RERA page, treat that as a warning sign and ask for clarification in writing.
Related Protections Buyers Should Know
Section 13 provides that a promoter cannot accept more than ten per cent of the cost of the apartment as an advance without first entering into a registered written agreement for sale. Section 12 gives you a right to compensation if you are harmed by false or incorrect information in the advertisement or prospectus. Section 18 provides for refund with interest or compensation where possession is not given on time or the promoter fails to meet obligations under the agreement.
Together these provisions mean you can compare what was declared to RERA, what was advertised, and what your agreement says. A mismatch is the starting point for a complaint.
How to Check Disclosures Before You Pay
Visit the official K-RERA portal, search the project by name or registration number, and open the project page. Compare the promoter name, registration validity dates, sanctioned plan, completion date, and quarterly progress with the sales brochure. Confirm the escrow bank account details and ask for the registered agreement for sale before paying anything beyond a token amount.
Keep copies of advertisements, brochures and messages. If the project is unregistered, or the details on the portal differ from what you were told, pause the purchase and take advice from a qualified legal professional.
✅ Key Takeaways
🔗 Official Portal: rera.karnataka.gov.in
📅 Published: October 21, 2026 | This blog is a public awareness initiative. Verify all information with official sources before making financial decisions.
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