Does RERA Cover Shops and Offices? Commercial Buyer Rights
RERA covers commercial units too. See which protections apply to shops and offices, the 10% advance cap, common areas vs sellable units and what to check.
Written by
Justin
26 October 2026 · 5 minutes read
Does RERA Cover Shops and Offices? What Commercial Buyers Get
Short version: Yes. The Real Estate (Regulation and Development) Act, 2016 covers commercial units, not just homes. Its definition of “apartment” expressly includes offices, shops, showrooms and godowns, so a commercial unit in a registered project gets the same core protections as a flat: registration before sale, the 10% advance cap, delay remedies, escrow and five-year defect liability. The catch is that commercial facilities meant for the whole project are treated as common areas, not as units for sale.
Many investors assume RERA is only for homebuyers. That’s a costly assumption. Here’s what applies to a shop or office, what doesn’t, and what to check before you pay.
Does RERA cover commercial property?
Yes. Section 2(e) defines “apartment” to include a block, chamber, office, showroom, shop, godown or premises used for residential or commercial purposes, or for carrying on any business, trade or profession. Because many duties in the Act are framed around apartments, plots and buildings, a commercial unit in a project that needs registration is within them.
Are you an allottee if you buy a shop?
Yes. An allottee is the person to whom an apartment is allotted, sold or transferred, including a later buyer, but not someone who takes it on rent. An investor who buys a shop is the allottee. The retailer who leases it from them is not, so tenants don’t acquire the buyer’s RERA rights.
Which protections carry over to a shop or office?
Protection | What it means | Section |
|---|---|---|
Registration first | Promoter must register a qualifying project before advertising, booking or selling | 3 |
10% advance cap | No more than 10% of the cost before a written, registered agreement for sale | 13 |
70% escrow | 70% of amounts collected goes into a separate project account, used only for that project’s construction and land cost | 4(2)(l)(D) |
Delay remedies | Refund with interest and compensation, or monthly interest if you stay in the project | 18 |
Defect liability | Structural and workmanship defects reported within 5 years of possession must be fixed within 30 days | 14(3) |
Disclosures | Project details on the regulator’s website, updated quarterly | 4, 11 |
Consumer courts may treat purchases made for a commercial purpose differently from home purchases, so for office and shop buyers, RERA may be the main route when a promoter defaults. Check with a lawyer for your case.
Which projects must register?
The same thresholds apply: land above 500 sq m, or more than 8 apartments (including commercial units). A project with a completion certificate before RERA came into force is exempt. See our guide on RERA registered vs RERA approved for how to verify a project.
What’s a sellable unit and what’s a common facility?
This is the commercial-specific trap. Section 2(n) says common areas include “all community and commercial facilities as provided in the real estate project”. So a mixed-use project can contain two kinds of commercial space:
A shop or office the promoter sells to a buyer as an individual unit.
A facility the sanctioned plan provides for the project, such as a community hall or a convenience store space, which forms part of the common areas and goes to the association.
Parking works the same way. Open parking is a common area and can’t be sold. A garage, meaning a place with a roof and walls on three sides, can be sold separately from an apartment.
How do I tell them apart?
Use the documents, not the brochure. Find the unit on the sanctioned plan and the project’s RERA page, and confirm it is marked as a unit for sale. The promoter can’t make major changes to sanctioned plans without the written consent of two-thirds of allottees, and minor alterations need proper declaration and intimation to allottees. A plan that turns a common facility into a sellable shop would raise questions.
What should an investor check before booking?
Check | Why |
|---|---|
RERA registration covers the commercial portion | Confirms protections apply |
The unit is on the sanctioned plan and marked for sale | Separates it from common facilities |
Permitted use (retail, office, etc.) and land use zone | RERA coverage doesn’t change what use is allowed |
Carpet area in the agreement | RERA’s carpet area definition applies to apartments, which include shops and offices |
Written agreement before you pay more than 10% | Section 13 |
Declared completion date and delay remedies | Section 18 |
How parking is offered (garage or open) | Open parking can’t be sold |
Latest quarterly update on the portal | Checks progress against promises |
Keep the agreement, receipts and handover papers in your own name. If you lease the unit out, you stay the allottee.
Frequently asked questions
Does RERA apply to shops and offices?
Yes. Section 2(e) defines “apartment” to include offices, shops, showrooms and godowns.
Is a shop buyer an allottee under RERA?
Yes. A tenant is not.
How much advance can a builder take for a shop?
No more than 10% of the cost before a written, registered agreement for sale.
Are commercial facilities in a project part of common areas?
Yes. Section 2(n) includes community and commercial facilities provided in the project. Units sold to individual buyers are separate.
Does RERA’s defect liability apply to commercial units?
Yes. The five-year rule in Section 14(3) applies to apartments, which include commercial units.
Can open parking be sold with a shop?
No. Open parking is a common area. A garage can be sold independently.