Using a Broker for a Mumbai New Launch: What RERA Requires of Agents

A Saturday site visit in Thane or Goregaon often starts with a phone call from someone who is not the builder. The caller has a launch price, a floor plan on WhatsApp, a site visit slot and, by the end of the day, a request for a cheque. In Mumbai's new launch market, the person standing between a buyer and a promoter is very often a broker.

The Real Estate (Regulation and Development) Act, 2016 has a whole set of rules for that person. It calls them real estate agents, defines the term widely enough to include brokers and middlemen, requires them to register before facilitating sales in registered projects, and lists what they must and must not do. This guide reads those provisions from the Act and turns them into a short routine for a Mumbai buyer.

The short answer. Under the RERA Act, a real estate agent cannot facilitate the sale or purchase of a unit in a registered project being sold by the promoter without registering with the Authority, and must quote the registration number in every sale facilitated. A registered agent must not facilitate sales in unregistered projects, must not make false or misleading claims, and must help you get the information and documents you are entitled to at booking. An agent who breaches these rules faces a penalty of 10,000 rupees a day, up to five percent of the unit's cost. The trade-off: a good broker saves you time, but only if you check the broker as carefully as the project.

Who counts as a real estate agent under RERA?

Section 2(zm) of the Real Estate (Regulation and Development) Act, 2016 in its Gazette text defines a real estate agent as any person who negotiates or acts on behalf of one person in a transaction of transfer of a plot, apartment or building in a real estate project, by way of sale, and receives remuneration, fees or other charges for the service, whether as commission or otherwise.

The definition then widens. It includes a person who introduces, through any medium, prospective buyers and sellers to each other for negotiation, and it includes property dealers, brokers and middlemen by whatever name called. A channel partner, a property consultant or a person who runs a listings group and earns a fee on closure can therefore all fall within the definition, depending on what they actually do.

For a buyer, the label on a visiting card does not decide the question. What matters is whether the person is negotiating or introducing parties for a fee in a sale within a real estate project.

When must a broker be registered with RERA?

Section 9(1) says no real estate agent shall facilitate the sale or purchase of, or act on behalf of any person to facilitate the sale or purchase of, any plot, apartment or building in a real estate project, or part of one, registered under Section 3 and being sold by the promoter in any planning area, without obtaining registration under that section.

That wording is specific. It is built around units in registered projects that are being sold by the promoter, which is the typical new launch or under construction booking in Mumbai. If you are buying a resale flat from an individual owner, read your state's rules and the regulator's guidance on whether any registration requirement applies to the broker involved, rather than assuming either way.

Registration works at the state level. Section 9(3)(a) provides for a single registration for the entire state or union territory, and Section 9(5) says every registered agent shall be granted a registration number, which shall be quoted by the agent in every sale facilitated. Section 9(6) makes registration valid for a prescribed period and renewable, and Section 9(7) allows the Authority to revoke or suspend a registration for breach of conditions, or where it was secured through misrepresentation or fraud, after giving the agent a hearing.

What must a registered broker do and avoid?

Section 10 lists the functions of a registered real estate agent. The table below sets each one beside the practical check a buyer can make.

Section 10(c) also treats as an unfair trade practice any false or misleading representation concerning the services, and permitting publication of advertisements for services that are not intended to be offered. A broker who advertises a discount or an allotment that the promoter has not authorised is the kind of conduct this clause addresses.

It helps to know what those documents are. Section 11(3) of the Act requires the promoter, at the time of booking and issue of the allotment letter, to make available the sanctioned plans and layout plans along with specifications approved by the competent authority, by display at the site or as regulations specify, and the stage wise time schedule of completion, including provisions for water, sanitation and electricity. When a broker hands you a price sheet, ask for these alongside it. If the broker cannot produce them, ask the promoter's sales office directly and note who provided what, and when.

The duty to facilitate documents is the most useful for buyers. The promoter has its own disclosure duties under the Act, and the agent's job, under Section 10(d), is to help you actually receive what you are entitled to at booking, not just a brochure and a price sheet.

What happens if a broker breaks these rules?

Section 62 sets the penalty. If a real estate agent fails to comply with or contravenes Section 9 or Section 10, the agent is liable to a penalty of 10,000 rupees for every day the default continues, which may cumulatively extend up to five percent of the cost of the plot, apartment or building for which the sale or purchase was facilitated, as determined by the Authority.

Section 31(1) also allows any aggrieved person to file a complaint with the Authority or the adjudicating officer against a promoter, allottee or real estate agent for a contravention of the Act or the rules and regulations. So a complaint route exists against the agent directly, not only against the builder.

In practice, your best protection is to make sure the paper trail exists from the first meeting. A complaint is far easier to pursue when you can show the agent's registration number, the project's registration number and written receipts for every payment.

How should you pay when a broker is involved?

Keep the money trail between you and the promoter wherever possible. Booking amounts and instalments for a new launch are the promoter's receipts, and the Act requires 70 percent of amounts realised from allottees to go into the project's separate account. Paying the promoter directly, by a traceable method, keeps your payment inside that system.

If the broker charges you a fee, agree it in writing before the site visit turns into a negotiation, and pay it separately from the booking amount, with a receipt that carries the agent's registration number. Our guide on verifying a MahaRERA project registration shows how to check the project side of the transaction, and for resale deals, our explainer on getting a seller's home loan documents released covers the payment sequence when the seller still has a loan.

What should a Mumbai buyer check before working with a broker?

A few minutes of checking at the start saves weeks of argument later. Use this checklist:

1. Ask the broker for their RERA agent registration number before the site visit.
2. Verify that number on the regulator's website and match the name or firm.
3. Ask for the project's registration number and verify it separately.
4. Ask whether the promoter has authorised the broker for this specific project.
5. Agree any brokerage fee in writing, including when it becomes payable.
6. Pay booking amounts to the promoter directly, never in cash to an intermediary.
7. Keep receipts that show the agent's registration number for any fee you pay.

None of this is an accusation. A registered, transparent broker will expect these questions and answer them quickly, which is itself a useful signal.

What do Mumbai buyers ask about RERA registered brokers?

Does a property broker in Mumbai need RERA registration?

Under Section 9(1) of the RERA Act, a real estate agent cannot facilitate the sale or purchase of a unit in a RERA registered project being sold by the promoter in a planning area without registering with the Authority. The registration number must be quoted in every sale the agent facilitates.

Who counts as a real estate agent under RERA?

Section 2(zm) defines a real estate agent as anyone who negotiates or acts for a party in a sale within a real estate project for a fee or commission. It also covers people who introduce buyers and sellers through any medium, including property dealers, brokers and middlemen.

What is the penalty for a broker who breaks RERA rules?

Section 62 makes an agent who contravenes Section 9 or 10 liable to a penalty of 10,000 rupees for every day the default continues, which may add up to five percent of the cost of the unit whose sale was facilitated, as the Authority determines.

Can I complain to RERA about a broker?

Yes. Section 31(1) of the RERA Act allows any aggrieved person to file a complaint with the Authority or the adjudicating officer against a promoter, allottee or real estate agent for a contravention of the Act, rules or regulations. Keep receipts and registration numbers to support it.

Last updated 2026-10-17. PropNewz Team.