RERA Act 2016 for Karnataka Agents: Key Concepts Explained

Updated 3 October 2026

An earlier version of this article was written for a test that Karnataka does not hold, and gave the wrong exemption threshold. Karnataka RERA has not mandated an agent exam. This version explains the parts of the RERA Act 2016 that matter most to agents working in Karnataka.

What the Act is

The Real Estate (Regulation and Development) Act, 2016 is central law. All of its sections were in force from 1 May 2017. It regulates the sale of plots, apartments and buildings in real estate projects, and it is enforced in Karnataka by the Karnataka Real Estate Regulatory Authority under the Karnataka Real Estate (Regulation and Development) Rules, 2017.

Who must register

**Projects (Section 3).** A promoter must register a project before advertising, marketing or selling it. The exemption covers projects where the land is up to 500 square metres or the number of apartments is up to eight, counting all phases.

**Agents (Section 9).** An agent must register before facilitating a sale in a project that must be registered. In Karnataka, rule 9 of the Rules sets the fee at ₹25,000 for an individual and ₹2,00,000 otherwise, and rule 10(4) makes registration valid for five years.

The three parties

- **Promoter:** the person who develops the project. Section 11 lists the promoter's duties, Section 4(2)(l)(D) requires 70% of amounts collected from allottees to go into a separate account, and Section 13 caps the advance at 10% of the cost before a registered agreement for sale.
- **Allottee:** the buyer. Section 19 sets out the allottee's rights, including information about sanctioned plans and the stage-wise schedule of completion.
- **Agent:** the intermediary. Section 10 requires an agent to keep proper books, avoid false statements and unfair practices, and help the allottee get the documents they are entitled to.

Plans, defects and delays

Under Section 14, a promoter cannot alter the sanctioned plans without the written consent of at least two-thirds of the allottees, and must fix structural defects reported within five years of possession within 30 days. Under Section 18, an allottee whose possession is delayed can withdraw and recover the amount paid with interest, or stay and receive interest for every month of delay.

Penalties

- Section 59: up to 10% of the estimated project cost for failing to register a project
- Section 60: up to 5% for giving false information when registering
- Section 61: up to 5% for other contraventions by a promoter
- Section 62: for an agent, up to ₹10,000 for every day of default, up to 5% of the cost of the plot, apartment or building

Where disputes go

Complaints go to the Authority (Section 31). Appeals against its orders go to the Real Estate Appellate Tribunal within 60 days (Section 44), then to the High Court (Section 58). Under Section 79, civil courts cannot hear matters the Authority can decide.

Using this

These sections come up in almost every transaction an agent handles. Read each one in the Act itself, then test yourself with practice questions to see which ones you can apply, not just recall.