Abrupt negative differential resistance (NDR) in the I-V characteristics of AlGaAs-InGaAs-GaAs pseudomorphic MODFETs at room temperature is interpreted as due to tunnelling real-space transfer (TRST) which occurs when the wavefunctions of the upper electron states in the InGaAs channel hybridize with quantized states in the AlGaAs layer and induce a charge transfer from the high-mobility channel to the low-mobility AlGaAs. The theoretical model predicts the onset of abrupt NDR in the I-V characteristics in excellent agreement with the experimental results.