Buying a Shop or Office in a Bengaluru Project? How RERA Covers Commercial Units
A guide for Bengaluru investors buying a shop or office in a registered project: why RERA covers commercial units, which protections carry over from flats, how community and commercial facilities differ from sellable units, and what to check first.
An investor in Bengaluru is weighing a ground floor shop in a mixed-use project, with flats above and a row of retail units facing the main road. The sales team is friendly but vague on one point: is a shop covered by RERA in the same way as a flat? Some buyers assume the Real Estate (Regulation and Development) Act, 2016 is only about homes. The Housing Ministry's FAQs say otherwise.
This guide sets out what those FAQs say about commercial real estate under the Act, how the definitions of apartment and building bring shops and offices within it, why the community and commercial facilities in a project are treated differently from units sold to buyers, and what an investor should check before booking a commercial unit in a Bengaluru project.
The short answer. According to the Ministry of Housing and Urban Affairs FAQs on RERA, the Act covers both residential and commercial real estate, because the definitions of apartment in section 2(e) and building in section 2(j) include both. That means a shop or office sold in a registered project carries the same core protections as a flat, from registration before marketing to the 10 percent advance limit. The trade-off: the FAQs also treat community and commercial facilities provided in a project as common areas, so read the plans to see what is a sellable unit and what belongs to the association.
Does RERA cover shops and offices?
Yes. The Housing Ministry's FAQs state that the Act covers both residential and commercial real estate, and explain that section 2(e), which defines apartment, and section 2(j), which defines building, include both residential and commercial real estate.
That answer matters because many of the Act's obligations are framed around apartments, plots and buildings. If a shop or office falls within the definition of an apartment or building, the promoter's duties and the buyer's rights that attach to those terms apply to it as well. A commercial unit in a registered project is not a second class purchase under the Act.
The FAQs also make clear that the buyer of such a unit is an allottee. Under section 2(d), as the FAQs explain, an allottee is the person to whom a plot, apartment or building is allotted, sold or otherwise transferred, including a later buyer through transfer or sale, but not a tenant. An investor who buys a shop is an allottee; a retailer who rents it from the investor is not.
For a Bengaluru investor, the practical result is that the same checks used for a flat apply to a shop or office: registration, disclosures, the agreement for sale and the remedies if the promoter defaults.
Which RERA protections carry over to a commercial unit?
The core protections the FAQs describe are framed around projects, apartments and allottees, so they carry over. The first is registration. The FAQs explain that section 3(1) requires a promoter to register a project before any advertising, marketing, booking, selling or offering for sale, and that a project can be advertised only after registration.
The second is the limit on advance payments. The FAQs explain that section 13 provides that a promoter cannot accept more than 10 percent of the apartment or plot cost as an advance or application fee without first executing an agreement for sale, and that the agreement is binding and cannot be contrary to the Act and its rules.
The third is the remedy for delay. The FAQs describe how section 18 gives an allottee whose possession is delayed the right to withdraw and claim a full refund with interest and compensation, or to stay and receive interest for every month of delay. The fourth is defect liability: under section 14(2), the promoter is liable for five years from handover for structural and other specified defects.
Money paid for a commercial unit is protected in the same way as money paid for a flat. The FAQs explain that section 4(2)(l)(D) requires the promoter to keep a separate bank account for every project, into which seventy percent of the amounts received from allottees must be deposited, and that those funds can be used only for construction and land cost.
The table below summarises these protections as they apply to a commercial unit in a registered project.
| Protection | What the FAQs say | What it means for a shop or office buyer |
|---|---|---|
| Coverage | Apartment and building include commercial real estate, sections 2(e) and 2(j) | The unit is within the Act |
| Registration first | Register before advertising or booking, section 3(1) | Check the project's registration before paying |
| Advance limit | No more than 10 percent before an agreement for sale, section 13 | Insist on the agreement before larger payments |
| Delay remedies | Refund with interest and compensation, or monthly interest, section 18 | Same options as a flat buyer if possession is late |
| Defect liability | Five years from handover, section 14(2) | Structural defects must be rectified within 30 days |
Why are some commercial spaces part of the common areas?
Because the Act distinguishes facilities provided for the project from units sold to buyers. The FAQs explain that section 2(n) defines common areas to include community and commercial facilities, and that they are therefore an integral part of the project, to be handed over to the association of allottees.
In practice, a mixed-use project may contain two different kinds of commercial space. One is a shop or office that the promoter sells to an individual buyer as a unit. The other is a facility, such as a convenience store space or a community hall, that the sanctioned plan provides as part of the project's common areas. The FAQs' answer on section 2(n) concerns the second kind.
The same definition has consequences for parking. The FAQs explain that common areas include open parking areas, so they cannot be sold to allottees, while a garage, defined in section 2(y) as a place with a roof and walls on three sides, can be sold independently of an apartment. We covered those rules in our guide to common areas, open parking and garages under RERA.
How can an investor tell a sellable unit from a common facility?
From the documents, not the brochure. The FAQs explain that sections 4 and 11 require detailed project disclosures on the regulator's website for public viewing, and that section 11 requires the promoter to update project information, including some details on a quarterly basis. The sanctioned plan and the project's portal page are where the distinction between units for sale and common facilities should appear.
Any change to that layout is regulated too. The FAQs explain that, under section 14, a promoter can make minor additions or alterations to the sanctioned plans only after the competent authority's approval and disclosure to allottees, while a major alteration needs the consent of two thirds of the allottees, excluding units held by the promoter, with one vote per allottee. A plan that shifts a common facility into a sellable shop would fall within those rules.
Usage is a separate question from RERA coverage. A unit sanctioned for residential use does not become a commercial unit because RERA covers both kinds of property. We looked at the risks of running a business from a residential flat in our guide to commercial use of a residential flat in Bengaluru.
What should a Bengaluru investor check before booking a commercial unit?
Treat the shop or office as you would a flat, with a few added questions about how the space is classified. Whether you are looking at a retail unit in a large mixed-use development or comparing it with a project such as Embassy Boulevard Phase 2 on our project pages, these steps help.
- Confirm the project's RERA registration and that the commercial portion is part of it.
- Find the unit on the sanctioned plan and confirm it is marked for sale, not as a common facility.
- Check the permitted use of the unit in the approvals, such as retail or office.
- Read the portal disclosures and the latest quarterly update for the project.
- Sign an agreement for sale before paying more than 10 percent of the cost.
- Note the declared completion date and the delay remedies under section 18.
- Ask how parking for the unit is offered, and whether it is a garage or open parking.
An investor who buys a commercial unit and then leases it out remains the allottee for RERA purposes; the tenant does not acquire the allottee's rights. Keep the agreement for sale, receipts and handover documents in the investor's name, since those are what support any claim against the promoter later.
The FAQs themselves carry a disclaimer that they are for general guidance and are not a final legal interpretation, so take legal advice on any unit whose classification or approvals are unclear.
What do Bengaluru investors ask about commercial property and RERA?
Does RERA apply to shops and offices?
Yes. The Housing Ministry's FAQs say the Act covers both residential and commercial real estate, because section 2(e), which defines apartment, and section 2(j), which defines building, include both. A shop or office sold in a registered project therefore falls within the Act.
Is the buyer of a commercial unit an allottee under RERA?
Yes. Under section 2(d), as the Housing Ministry's FAQs explain, an allottee is the person to whom an apartment, plot or building is allotted, sold or transferred, including a later buyer. A tenant who rents the unit is not an allottee under the Act.
Are commercial facilities in a project part of the common areas?
The Housing Ministry's FAQs say section 2(n) defines common areas to include community and commercial facilities provided in a project, which are an integral part of it and must be handed over to the association of allottees. Units sold individually are separate from these facilities.
How much can a builder collect before an agreement for a shop?
The Housing Ministry's FAQs say section 13 bars a promoter from accepting more than 10 percent of the apartment or plot cost as an advance or application fee without first executing an agreement for sale. Since apartment includes commercial units, the same limit applies.
Last updated 2026-10-19. PropNewz Team.
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