RERA Project & Agent Registration Rules
Real estate projects and brokerage services are governed under state-specific RERA acts to protect buyers.
| RERA category | Current verified position | Key requirement |
|---|---|---|
| Project Registration | Mandatory for real estate projects where land area exceeds 500 sq meters or apartments exceed 8. | No marketing or sale is allowed prior to receiving the RERA registration number. |
| Agent Registration | Mandatory for real estate brokers/agents to facilitate transactions. | Must display RERA registration number in all promotional materials. |
| Escrow Account (70%) | 70% of funds collected from allottees must be deposited in a separate bank account. | Withdrawals allowed only for construction costs and land acquisition, certified by a CA, engineer, and architect. |
| Quarterly Updates | Promoters must update project status, sold units, and financial certificates on the state portal. | Required to maintain active status and avoid penalties. |
What a serious project auditor should verify
- CA Certificates (Form 3): Certified withdrawals from the 70% escrow account based on project stage completion.
- Title Due Diligence reports: Legal title report and search report for the past 30 years must be submitted during registration.
- Structural Defect Liability: Promoters are liable for structural defects or quality issues for a period of 5 years from possession.
- State-specific rules: Check if your local state portal (like MahaRERA, K-RERA, etc.) has special deposit or disclosure thresholds.
Documents for RERA registration
- Land title deeds and development agreement.
- Sanctioned building plans and approvals.
- Promoter bank account details (escrow account setup).
- Project layout, cost estimates, and builder certificates.
Accounting for Real Estate Businesses: year and source check
Last fact-checked: 18 June 2026.
Direct and indirect tax laws, corporate filings, and compliance rules are subject to change by CBIC, MCA, EPFO, and RBI notifications. Always verify circulars before executing a transaction.
Use official government portals (such as GST portal, MCA V3, e-filing portal, and TRACES) first. Articles and competitor calculators should be treated as guidance, not legal advice.
FAQs
What is the 70% rule under RERA?
RERA mandates that promoters must deposit 70% of the collections from homebuyers into a separate escrow account. These funds can only be used for construction and land costs of that specific project.
Is RERA registration mandatory for real estate agents?
Yes. Under Section 9 of the RERA Act, no real estate agent can facilitate the sale or purchase of any plot or apartment without obtaining RERA registration.
What is the project size threshold for mandatory RERA registration?
RERA project registration is mandatory for all commercial and residential projects where the land area exceeds 500 square meters or the number of apartments exceeds 8 units.
Frequently Asked Questions
1. What are the audit and accounting requirements for businesses dealing with Accounting for Real Estate Businesses?
Businesses involving Accounting for Real Estate Businesses must maintain proper books of accounts under Section 44AA. A tax audit under Section 44AB is mandatory if turnover exceeds ₹1 crore (or ₹10 crore for digital operations).
2. Why is a UDIN mandatory for CA certifications related to Accounting for Real Estate Businesses?
All CA-certified financial statements, net worth certificates, or audit reports for Accounting for Real Estate Businesses must carry a Unique Document Identification Number (UDIN) generated on the ICAI portal to be legally valid.
3. What is the due date for submitting the Tax Audit report?
The due date to file the tax audit report on the income tax portal is September 30 of the Assessment Year (one month prior to the ITR filing due date of October 31 for audited cases).
4. What is the penalty for not getting books of accounts audited?
Under Section 271B, failure to get books audited u/s 44AB attracts a penalty of 0.5% of the total sales, turnover, or gross receipts, subject to a maximum cap of ₹1.5 lakh (₹150,000).
5. What is UDIN and why is it mandatory for CAs?
UDIN (Unique Document Identification Number) is a unique 18-digit number generated by Chartered Accountants on the ICAI portal for every certificate, audit report, and document they sign, to prevent forgery and verify CA credentials.
6. What happens if a CA fails to generate a UDIN?
Documents signed by a CA without a UDIN are treated as invalid. If not generated within the 60-day window, the CA can face disciplinary action from the ICAI for professional misconduct.
7. What is a Statutory Audit under the Companies Act, 2013?
A statutory audit is a mandatory review of a company's financial records to verify they present a true and fair view. It is compulsory for all companies (Private Limited, Public, OPC) regardless of turnover or capital.
8. What is a Secretarial Audit under Section 204?
A secretarial audit is an audit of compliance with corporate, securities, and labor laws, conducted by a practicing Company Secretary (CS) who submits Form MR-3. It is mandatory for listed and large public/borrowing unlisted companies.
9. What are the thresholds for a mandatory Secretarial Audit?
Secretarial audit is mandatory for: (1) Listed companies. (2) Public companies with paid-up capital >= ₹50 crore or turnover >= ₹250 crore. (3) Any company with outstanding bank/public financial institution loans >= ₹100 crore.
10. What is CARO (Companies Auditor's Report Order)?
CARO is a set of compliance items that statutory auditors of companies must report on, covering areas like fixed assets, inventory verification, loans to related parties, statutory dues, and internal control structures.
11. Are LLPs required to undergo audits?
Under the LLP Act, 2008, an LLP must get its accounts audited if its annual turnover exceeds ₹40 lakh or if its partner contributions exceed ₹25 lakh.
12. What is an Internal Audit? Who is required to appoint an internal auditor?
An internal audit evaluates a company's risk management and internal controls. Under Section 138 of the Companies Act, listed companies and unlisted public/private companies crossing specific turnover or debt thresholds must appoint an internal auditor.
13. What is the difference between Form 3CA and Form 3CB?
Form 3CA is the audit report used when the business is already required to get its accounts audited under another law (like the Companies Act). Form 3CB is used when the audit is required solely under the Income Tax Act.
14. What is Form 3CD?
Form 3CD is a detailed statement of particulars containing 44 clauses that the tax auditor must complete, detailing business income, expenses, depreciation, MSME dues, TDS compliance, and tax adjustments.
15. Can a tax audit report be revised after uploading?
Yes, a tax audit report can be revised if there are changes in the accounts (like corporate restructuring) or adjustments due to subsequent notifications, certified by the same CA with a fresh UDIN.