Section 2 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 2 is the dictionary of the Act, and it runs to 44 clauses, lettered (a) to (z) and then (za) to (zr). This is the first of three articles on it. It covers the "who is who" terms: allottee, promoter, real estate agent, person, company, family, and the "project" terms that tell you what is being regulated. If you are unsure whether you are a promoter under RERA, our legal consultation service can read your arrangement against these clauses.
A promoter (2(zk)) is not only the builder: it includes a land developer, a development authority, a co-operative housing society that builds for its members, a person holding a power of attorney from the landowner, and both the builder and the seller when they are different persons, who are then jointly liable. An allottee (2(d)) includes a later buyer but not a person who takes the unit on rent. A real estate agent (2(zm)) is anyone who negotiates a sale in a registered project for remuneration. The definitions apply "unless the context otherwise requires".
How section 2 is split across three articles
| Article | Clauses covered |
|---|---|
| This article | (d) allottee, (o) company, (x) family, (z) immovable property, (zg) person, (zj) project, (zk) promoter, (zl) prospectus, (zm) real estate agent, (zn) real estate project |
| Article on built-form terms | (e) apartment, (j) building, (k) carpet area, (n) common areas, (s) development, (t) development works, (v) estimated cost, (w) external development works, (y) garage, (zb) internal development works, (zh) planning area, (zq) sanctioned plan |
| Article on authorities and other terms | the remaining 22 clauses |
Clause (zk): promoter
The definition has six limbs, and one Explanation.
| Limb | Who it catches |
|---|---|
| (i) | A person who constructs, or causes to be constructed, an independent building or a building of apartments, or converts an existing building or part of it into apartments, to sell all or some of the apartments to others, and his assignees |
| (ii) | A person who develops land into a project, whether or not he also builds on the plots, to sell all or some of the plots, with or without structures |
| (iii) | Any development authority or other public body, for allottees of buildings or apartments it built on land it owns or which the Government placed at its disposal, or of plots it owns or has at its disposal, to sell apartments or plots |
| (iv) | An apex State level co-operative housing finance society and a primary co-operative housing society that constructs apartments or buildings for its Members or for the allottees of such apartments or buildings |
| (v) | Any other person who acts himself as a builder, coloniser, contractor, developer, estate developer or by any other name, or claims to be acting as the holder of a power of attorney from the owner of the land |
| (vi) | Such other person who constructs any building or apartment for sale to the general public |
Explanation. Where the person who constructs, converts or develops and the person who sells are different, both are deemed to be promoters and are jointly liable for the functions and responsibilities under the Act, rules and regulations.
The test throughout is the purpose of sale, and limb (vi) is a wide residual limb. The definition names no minimum number of units; the registration thresholds sit in section 3 (see our post on section 3).
Example. Sharma Land Pvt Ltd develops a layout into 40 plots and a marketing firm, Gupta Realty, sells them for it. Under the Explanation, both are promoters and jointly liable for the Act's responsibilities. Gupta Realty cannot say it is only a seller.
Clause (d): allottee
"Allottee" in relation to a real estate project means the person to whom a plot, apartment or building has been allotted, sold (whether on an ownership or a leasehold basis) or otherwise transferred by the promoter. It also includes the person who subsequently acquires the said allotment through sale, transfer or otherwise, but does not include a person to whom the plot, apartment or building is given on rent.
So a first buyer and a resale buyer are both allottees, and a tenant is not. Our post on rights of the allottee under section 19 shows what an allottee can claim.
Clause (zm): real estate agent
A real estate agent is any person who negotiates or acts on behalf of one person in a transaction of transfer of a plot, apartment or building in a real estate project, by way of sale, with another person, or of transfer of another person's unit to him, and receives remuneration, fees or any other charges, whether as commission or otherwise. It includes a person who introduces prospective buyers and sellers to each other, through any medium, and "property dealers, brokers, middlemen by whatever name called".
The definition is about sale transactions and is tied to remuneration. Registration of agents is covered by section 9.
Clauses (zn) and (zj): real estate project and project
"Real estate project" means:
- the development of a building, or a building consisting of apartments; or
- converting an existing building or part of it into apartments; or
- the development of land into plots or apartments,
for the purpose of selling all or some of the said apartments, plots or building, and it includes the common areas, the development works, all improvements and structures thereon, and all easement, rights and appurtenances belonging thereto.
Clause (zj) says "project" means the real estate project as defined in clause (zn). The text prints "cluase (zn)", a typographical slip with no change of meaning.
Clause (zg): person
"Person" includes eight categories:
- an individual;
- a Hindu undivided family;
- a company;
- a firm under the Indian Partnership Act, 1932 or the Limited Liability Partnership Act, 2008, as the case may be;
- a competent authority;
- an association of persons or a body of individuals, incorporated or not;
- a co-operative society registered under any law relating to co-operative societies;
- any other entity the appropriate Government may specify by notification.
This list decides who can hold each role.
Clause (o): company
"Company" means a company incorporated and registered under the Companies Act, 2013, and includes (i) a corporation established by or under any Central or State Act, and (ii) a development authority or any public authority established by the Government in this behalf under any law. So a public body can be a "company" for this Act as well as a promoter under (zk)(iii).
Clause (x): family
"Family" includes husband, wife, minor son and unmarried daughter wholly dependent on a person. The word "includes" means the list is not stated to be exhaustive, but the text names only these.
Clause (z): immovable property
"Immovable property" includes land, buildings, rights of ways, lights or any other benefit arising out of land and things attached to the earth or permanently fastened to anything attached to the earth, but not standing timber, standing crops or grass.
Clause (zl): prospectus
"Prospectus" means any document described or issued as a prospectus, or any notice, circular or other document offering for sale any real estate project or inviting any person to make advances or deposits for such purposes. Section 12 deals with false statements in a prospectus; see our article on section 12.
Need help with who counts as a promoter or agent?
Joint development, power-of-attorney sales and marketing tie-ups are common places where the roles blur. If you need to know whether your arrangement makes you a promoter, an agent or neither, our legal consultation team can review the documents and map them to clauses (zk), (zm) and (d).
Key takeaways
- A promoter can be a builder, land developer, public body, co-operative society, power-of-attorney holder or any other person who builds for sale (2(zk)).
- Where the builder and the seller are different, both are promoters and jointly liable.
- An allottee includes a later buyer but not a tenant (2(d)).
- A real estate agent receives remuneration for negotiating or introducing buyers and sellers (2(zm)).
- "Person" has eight categories and includes a co-operative society and a competent authority (2(zg)).
Read next
- Section 2: built-form definitions (apartment, carpet area, common areas)
- Section 2: authority, completion certificate, interest and other definitions
- Key definitions under RERA: promoter, allottee, project
- Rights of the allottee under section 19
Disclaimer: Based on the Real Estate (Regulation and Development) Act, 2016 as enacted, as consulted on 1 October 2026. Rules, forms, fees and procedures are made by each State and Union territory and its Real Estate Regulatory Authority and differ from State to State. This article is general information, not legal advice; check the official text and your State's rules before acting.