Section 2

Section 2 is the definitional foundation of RERA — every right, obligation, penalty, and remedy in the Act is built on these definitions. The legislature was meticulous in defining terms that had previously been left to ambiguous industry usage, creating a clear legal vocabulary for residential real estate transactions. **'Carpet area' — the landmark consumer protection definition (Section 2(k)):** Before RERA, builders sold apartments on a 'super built-up area' or 'built-up area' basis — inflating the stated size by including common areas, walls, and shafts. A 1,500 sq ft 'super built-up' apartment might have only 950 sq ft of actual usable space. Section 2(k) defines 'carpet area' as the net usable floor area excluding external walls, service shafts, and exclusive open areas — but including internal partition walls. RERA Section 4 requires all registration and pricing disclosures to be on carpet area basis. This single definition has fundamentally changed how apartments are priced and sold in India. **'Promoter' — broad definition capturing all developers (Section 2(z)):** The promoter is the person who constructs or causes construction of apartments or develops land for sale. The definition captures not just builders but also persons who 'cause' construction — meaning landowners who hire developers, developers who outsource construction, and corporate groups who develop through SPVs. 'Includes his assignees' ensures that if the promoter sells or transfers their rights, the obligation follows. **'Allottee' — includes subsequent purchasers (Section 2(d)):** The allottee is not just the original buyer but also any person who subsequently acquires the unit through sale or transfer. This ensures RERA protections travel with the property — a resale buyer during construction has the same RERA rights as the original allottee. Renters are excluded — RERA is a homebuyer protection law, not a tenancy law. **'Real estate project' — the scope definition (Section 2(zn)):** Any development of apartments, plots, or converted buildings for the purpose of selling falls within the definition. The Act covers both residential and commercial projects. 'Common areas' are explicitly included — meaning rights and obligations regarding lifts, lobbies, parking, and amenities are captured. **'Estimated cost of real estate project' — financial disclosure basis (Section 2(v)):** The total cost of developing the project, used as the base for calculating penalties (e.g., 5% or 10% of estimated project cost under Sections 59–61). This definition is important for understanding how penalties are calculated. **State variation note:** Many states have added or modified definitions in their implementing rules. Maharashtra (MahaRERA) and Karnataka (K-RERA) have issued clarificatory orders on carpet area calculation methods — the basic definition is central but state rules affect implementation.