Brokers and Property Portals: What RERA Requires of Agents Selling Bengaluru Flats

Between a Bengaluru buyer and a new flat there can be a third party: a channel partner who arranged the site visit, a broker who shared the floor plan on a messaging app, or a property website where the listing first appeared. Each of them may be paid on the sale. Under the Real Estate (Regulation and Development) Act, 2016, each of them may also be a regulated real estate agent with duties of their own.

The Ministry of Housing and Urban Affairs sets out how the Act treats agents and web-based brokerages in its July 2025 FAQs on the Act. For a buyer, the practical upshot is simple: before acting on an agent's advice or paying anything through them, check that the agent is registered with the Karnataka regulator.

The short answer. MoHUA's FAQ says the definition of real estate agent in Section 2(zm) "is a very broad and inclusive definition," so "web-portals etc. engaged in selling plots or apartments are also covered under the Act." Under Section 9, agents selling registered projects must register with the Authority, and agents or web-based brokerages operating across several States must register "in each individual State/UT." An agent who fails to register is liable to a penalty of up to Rs 10,000 per day of default, cumulatively up to five percent of the cost of the unit sold. The trade-off: a registered agent is accountable to the regulator, but registration is not a guarantee of advice quality, so buyers still need to verify what the agent tells them against the project's own records.

Who counts as a real estate agent under RERA?

A wide range of intermediaries. The FAQ says "Section 2(zm) defines the term real estate agents, which is a very broad and inclusive definition and covers all from of agencies involved in sale and purchase of projects, registered under the Act." It continues: "Consequently, web-portals etc. engaged in selling plots or apartments are also covered under the Act and are required to comply with the duties and responsibilities as provided therein including under the Rules and regulations made thereunder."

So the definition is about function, not label. A broker, a channel partner or a website that engages in selling plots or apartments in a registered project falls within it.

Must every agent register in Karnataka?

Agents selling registered projects must. The FAQ says "Section 9 of the Act provides that real estate agent which engages in selling real estate project registered under the Act has to register themselves with the Authority." It adds that the mechanism, fees, period of registration and renewal are "matters to be detailed vide the Rules."

For agents and portals that work in several States, the FAQ is explicit: "Yes, as per Section 9, the Real Estate Agents or Web-Based Brokerage Firms operating across multiple States, are required to register themselves with respective Real Estate Regulatory Authority in each individual State/UT." It adds that "The Regulatory Authority shall grant a single registration to real estate agent for the entire State/UT." A national property website selling Bengaluru projects therefore needs a Karnataka registration, and one Karnataka registration covers the whole State.

What duties does a registered agent have?

Those set out in Section 10. The FAQ says "Section 10 of the Act provides for detailed functions and duties of real estate agents." It does not list them in its answer, so a buyer who wants the detail should read Section 10 of the Act and the Karnataka Rules.

The Act also makes the regulator's website a public record of agents. Under Section 34, the FAQ says the Authority must maintain a website for public viewing that includes "details of agents registered under the Act including his photograph and also of those agents whose registration has been revoked." That gives a Bengaluru buyer two things to look for: whether the agent is registered, and whether a registration has been revoked.

What penalties apply to agents who break the rules?

Penalties linked to the cost of the unit sold. The FAQ says that under Section 62, an agent who fails to register where obligatory "shall be liable to a penalty upto of rupees ten thousand per day of default, which may cumulative extend upto five percent of the cost of the plot / apartment, for which the sale has been facilitated by him."

For non-compliance with the Authority's orders, the FAQ says Section 65 provides a daily penalty that "may cumulative extend upto five percent of the cost of the plot / apartment, for which the sale has been facilitated by him." For non-compliance with the Appellate Tribunal's orders, Section 66 provides a daily penalty that may extend up to ten percent of that cost "or with imprisonment for a term which may extend upto one year or with both."

Agents also sit within the Act's appeal structure. The FAQ says the Appellate Tribunal "is a quasi-judicial body, which is empowered to hear appeals from the orders / decisions / directions of the Regulatory Authority or the Adjudicating Officer," and that "Any person aggrieved by the decision or order of the Appellate Tribunal can file and appeal with the High Court." It also says that interest, penalty or compensation imposed under the Act on a promoter, allottee or real estate agent, if unpaid, "becomes recoverable as an arrear of land revenue." For a buyer, the point is that an agent's obligations are enforceable through the same machinery as a promoter's.

How does this protect a Bengaluru buyer in practice?

It gives the buyer a regulator to approach. The FAQ says that "Section 31 of the Act provides for filing of complaint by an aggrieved with the Regulatory Authority or Adjudicating Officer, as the case may be." A complaint can concern an agent as well as a promoter, since both have duties under the Act.

It also ties agents to the project's own registration. Because Section 9 refers to agents engaged in selling projects "registered under the Act," a buyer can cross-check two records: the project's registration and the agent's. Our guide to verifying a project's RERA registration explains the project side of that check.

The same caution applies to advertisements an agent forwards. The FAQ says under Section 2(b) that "any medium adopted in soliciting for sale, including SMS and emails, is covered under the definition of advertisement," and under Section 12 that the promoter "is responsible for the veracity of all information contained in the advertisement and the prospectus." A message from an agent promoting a project should carry information that matches what the promoter has declared to the regulator.

What about payments made through an agent?

Keep them to the promoter and in writing. The FAQ says Section 13 provides that "the promoter cannot accept more than 10% of the apartment / plot cost as an advance payment / application fees without first executing an Agreement for Sale with the allottee." The limit is framed around what the promoter accepts, so a buyer should make booking payments to the promoter's account and get a receipt in the promoter's name, whatever role the agent plays in arranging the deal.

Advance payments in private deals carry their own risks. Our report on a Karnataka High Court ruling on a sale agreement advance shows how a dispute over an advance can play out in court. For buyers comparing projects in north Bengaluru, such as Krishvi Prana in Hennur, asking for the agent's registration number at the first meeting is a simple step.

What should a buyer check before working with a broker or portal?

1. Ask the agent or portal for its RERA agent registration number with the Karnataka regulator.
2. Search the regulator's website and confirm the name, photograph and registration status match.
3. Check whether the agent appears in the list of agents whose registration has been revoked.
4. Confirm the project itself is registered, since Section 9 ties agent registration to registered projects.
5. Make booking payments only to the promoter's account and get a receipt in the promoter's name.
6. Keep copies of every message, brochure and email the agent sends, since these count as advertisements.
7. If a problem arises, note that a complaint can be filed with the Authority under Section 31.

Frequently asked questions

Do property websites need RERA registration to sell Bengaluru flats?

MoHUA's RERA FAQ says Section 2(zm) defines real estate agents very broadly, so web-portals engaged in selling plots or apartments are covered under the Act and must comply with its duties and the Rules. Under Section 9, agents selling registered projects must register with the State's Regulatory Authority.

Does a broker working in several states need a Karnataka registration?

Yes. MoHUA's FAQ says that under Section 9, real estate agents or web-based brokerage firms operating across multiple States must register with the Real Estate Regulatory Authority in each individual State or UT. The Authority grants a single registration to an agent for the entire State or UT.

What is the penalty for an agent who sells without RERA registration?

MoHUA's FAQ says that under Section 62, an agent who fails to register where obligatory is liable to a penalty of up to Rs 10,000 per day of default, which may cumulatively extend up to five percent of the cost of the plot or apartment whose sale the agent facilitated.

Can I check whether an agent's RERA registration was revoked?

According to MoHUA's FAQ, Section 34 requires the Regulatory Authority to maintain a website for public viewing that includes details of agents registered under the Act with their photographs, and also details of agents whose registration has been revoked. Buyers can search the Karnataka regulator's website for this.

This article explains the Ministry of Housing and Urban Affairs' general FAQs for information only and is not legal advice. The FAQ itself notes it is not a final interpretation of the Act.

Last updated 2026-11-09. PropNewz Team.