RERA Act, Rules and Regulations: Why Bengaluru Buyers Need Karnataka's Rules Too

Three layers of law sit behind every RERA-registered flat in Bengaluru. The first is the central Real Estate (Regulation and Development) Act, 2016. The second is the set of rules made by the state government. The third is the regulations issued by the state's Real Estate Regulatory Authority. According to the Ministry of Housing and Urban Affairs' FAQ on the Act, several of the details buyers care most about, including the interest rate on delays and the format of the agreement for sale, are fixed not in the Act but in those lower layers.

This guide explains how the three fit together and which details sit where, using MoHUA's FAQ. It does not set out Karnataka's specific rules, which a buyer should read in their current notified form.

The short answer. MoHUA's FAQ says the "appropriate government" for a state is the State Government, which must notify rules under Section 84 within six months of the Act's commencement. The Regulatory Authority must notify regulations under Section 85 within three months of its establishment, and every rule and regulation must be laid before the legislature under Section 86. The rules decide the rate of interest that both promoter and buyer pay on default, the agreement for sale, registration forms and fees, and complaint forms and fees. The trade-off: the Act gives every state the same core protections, but the numbers and formats a Bengaluru buyer actually signs come from Karnataka's own rules, so reading only the Act is not enough.

Who makes the rules for a state like Karnataka?

The state government. The FAQ says Section 2(g) defines the "appropriate Government" and, for a state, it is "the State Government." For union territories without a legislature it is the Central Government, and there are separate entries for Puducherry, Jammu and Kashmir, and Delhi.

The FAQ lists what the appropriate government must do. Under Section 84, it is "required to notify Rules for the implementation of the Act, within six months of its commencement." Under Section 20, it must establish the Regulatory Authority within one year, and under Section 43, the Appellate Tribunal within one year. It also constitutes the selection committee for the Authority and Tribunal members, appoints their officers and staff, and constitutes the Real Estate Regulatory Fund under Section 75.

What does the state's rule book decide?

Many of the details that reach a buyer's wallet. The FAQ points to rules repeatedly.

On interest, it says: "As per the Explanation to section 2(za) the rate of interest payable by either the promoter or the allottee shall be the same. The rate of interest is required to be specified by the appropriate Government in the Rules." So the principle of equal interest is national, but the rate is state-specific.

On the agreement for sale, it says that under Section 13(2), "the Appropriate Government is required to specify through Rules the 'Agreement for Sale' to be entered into between the promoter and the allottee." On registration, it says "the requisite forms to be filled, the fees to be paid etc. are to be determined by the Rules." On complaints under Section 31, "the form and manner and the fees payable for filing the complaint are to be specified by Rules." And on agents, the mechanism for registration, fees, period and renewal "are matters to be detailed vide the Rules."

What do the Authority's regulations cover?

Procedure and detail within the Act and rules. The FAQ says "as per section 85 of the Act, Regulations are required to be notified by the Regulatory Authority within 3 months of its establishment." It adds that, while the Authority can delegate many functions under Section 81, "the Authority cannot delegate the responsibility of making Regulations under section 85."

One example the FAQ gives is extension of registration: "The terms and conditions, the application form and the fees payable for extension of registration of project shall be in the manner as prescribed by the Authority in its regulations." The FAQ also says the Authority "has the power to regulate its own procedures within the framework of the Act and relevant rules."

What about penalties and compounding?

Rules matter there too. The FAQ says that where a person is punishable with imprisonment under the Act, Section 70 allows the offence to be compounded "on such terms and conditions which may be prescribed by Rules made by the appropriate Government," and that the fine payable in lieu of imprisonment is to be specified in those rules, capped at the maximum fine for that offence.

The penalty ceilings themselves, such as up to 10 per cent of the estimated project cost for not registering, are in the Act. But how certain offences are compounded, and for how much, depends on the state's rules. A buyer following a case against a promoter may therefore see both the Act and the state rules referred to.

Are rules and regulations open to scrutiny?

Yes. The FAQ says that under Section 86, "every Rule, Regulation, notification issued by the appropriate Government or the Authority, is required to be laid before the Parliament or the State Legislature, as the case may be."

There has also been central attention on whether state rules match the national model. A PIB release of 21 March 2022 said MoHUA had framed "Agreement for Sale" rules for union territories without legislatures and sent them to all states and union territories for adoption in 2016. It said that, "as per directions of Hon'ble Supreme Court," the Ministry was consulting each state's housing department to ascertain whether state rules "comply with the substratum of the Rules which have been framed by MoHUA."

This guide does not state the outcome of that exercise for Karnataka. For a buyer, the practical point is that the state format is the reference for your agreement, and the Act sits above it.

Can a builder's agreement depart from the state format?

Only within limits. The FAQ says the agreement for sale specified in the rules "is binding on the parties, however, internal flexibility could be provided in the said Agreement for Sale, for determination / insertion of other provisions as decided between the parties. However, the terms of aforesaid 'Agreement for Sale' cannot be contrary to the provisions of Act and Rules thereto."

That gives a buyer a simple test for any unusual clause: is it consistent with the Act and Karnataka's rules? PropNewz set out what Section 13 says an agreement must contain in our agreement for sale checklist, and covered the 10 per cent advance cap and the binding nature of the agreement in our guide to Section 13.

What if a term is not defined anywhere in RERA? Other laws fill the gap. The FAQ says "Section 2(zr) is an omnibus definition which provides that terms which have not been defined under the Act or the Rules and Regulations made thereunder, would have the same meaning as respectively assigned to them under the relevant Municipal laws or under any law for the time being in force."

For a Bengaluru buyer, that means local planning and municipal laws can matter when a word in your agreement is not defined in RERA itself. If a clause turns on such a term, a lawyer can tell you which law's definition applies.

How should a Bengaluru buyer use the three layers?

Read them in order, from the general to the specific, before you sign.

1. Use the RERA Act and MoHUA's FAQ to understand the core rights and duties that apply in every state.
2. Read Karnataka's notified RERA rules for the interest rate on default and the format of the agreement for sale.
3. Compare your draft agreement for sale, clause by clause, with the state format in the rules.
4. Flag any clause that seems contrary to the Act or the rules, and ask the promoter to explain or remove it.
5. Check the Authority's regulations for procedures that may affect you, such as how extensions are handled.
6. If a term in your agreement is not defined in RERA, ask a lawyer which municipal or other law defines it.
7. Keep copies of the versions of the rules and regulations you read, with the date, alongside your agreement.

Frequently asked questions

Who makes the RERA rules for Karnataka?

MoHUA's RERA FAQ says Section 2(g) defines the appropriate government for a state as the State Government. Under Section 84, the appropriate government must notify rules to implement the Act within six months of its commencement, so Karnataka's rules are made by the state government.

What is the difference between RERA rules and regulations?

According to MoHUA's FAQ, rules are made by the appropriate government under Section 84, while regulations are notified by the Regulatory Authority under Section 85 within three months of its establishment. Section 86 requires every rule, regulation and notification to be laid before Parliament or the State Legislature.

Is the RERA interest rate the same everywhere?

MoHUA's FAQ says that under the Explanation to Section 2(za), the rate of interest payable by the promoter or the allottee on default is the same for both, but that the rate itself is to be specified by the appropriate government in its rules. So check the state's rules.

Can a builder's sale agreement differ from the state format?

MoHUA's FAQ says the agreement for sale is specified by the appropriate government through rules under Section 13(2) and is binding, with internal flexibility for other provisions agreed between the parties. However, its terms cannot be contrary to the Act and the rules.

This article explains MoHUA's general FAQ on the RERA Act and a PIB release for information only and is not legal advice. The FAQ notes that it is not a final interpretation of the Act. For a specific agreement, read Karnataka's current rules and consult a lawyer.

Last updated 2026-11-11. PropNewz Team.