What Your Mumbai Broker Owes You Under RERA Section 10
Section 10 of the RERA Act tells registered real estate agents what they must and must not do, from refusing to sell unregistered projects to providing booking-stage documents. Section 62 sets a Rs 10,000 per day penalty. How Mumbai buyers can use these duties.
A Mumbai buyer meets a broker at a site office, hears that the project is "fully approved", and is told the documents will follow after the token payment. Under the Real Estate (Regulation and Development) Act, 2016, that sequence is backwards. Section 10 lists what a registered real estate agent must and must not do, and one of those duties is to help you get the information and documents you are entitled to at the time of booking, not after it.
The short answer. Section 10 says a registered agent shall not facilitate the sale of a unit in a project that is not registered with the Authority, shall not make false or misleading statements about services or claim approvals that do not exist, and shall facilitate the possession of all the information and documents the allottee is entitled to at the time of booking. Section 62 attaches a penalty of Rs 10,000 per day for breaching Sections 9 or 10, which may cumulatively extend up to five per cent of the cost of the unit sold. The trade-off: a registered broker owes you defined duties that a regulator can enforce, but those duties do not replace your own checks on the project and the paperwork.
Who counts as a real estate agent under RERA?
More people than the word "broker" suggests. Section 2(zm) of the RERA Act defines a real estate agent as any person who negotiates or acts on behalf of one person in a transaction to transfer a plot, apartment or building in a real estate project, and receives remuneration, fees or other charges for those services, whether as commission or otherwise. The definition expressly includes a person who introduces, through any medium, prospective buyers and sellers to each other for negotiation.
The Ministry of Housing and Urban Affairs reads that broadly. Its FAQs on the RERA Act dated July 2025 call it a very broad and inclusive definition covering all forms of agencies involved in the sale and purchase of registered projects, and say web portals engaged in selling plots or apartments are also covered and must comply with the duties under the Act, rules and regulations.
The same FAQs say real estate agents and web-based brokerage firms operating across several States must register with the Regulatory Authority in each State or Union Territory, and that the Authority grants a single registration for the whole State or UT. For a Mumbai purchase, the relevant registration is the one with MahaRERA.
What does Section 10 say an agent must not do?
Three prohibitions stand out for buyers. First, under Section 10(a), a registered agent shall not facilitate the sale or purchase of any plot, apartment or building in a real estate project, or part of one, being sold by the promoter in any planning area, which is not registered with the Authority.
Second, under Section 10(c), the agent shall not involve himself in unfair trade practices. The Act spells these out as making any statement, orally, in writing or by visible representation, which falsely represents that the services are of a particular standard or grade; which represents that the promoter or the agent has an approval or affiliation they do not have; or which makes a false or misleading representation about the services. Permitting the publication of an advertisement, in a newspaper or otherwise, of services that are not intended to be offered is also listed.
Third, under Section 9(1), no real estate agent shall facilitate the sale or purchase of, or act on behalf of anyone in the sale or purchase of, a unit in a registered project without first obtaining registration under that section.
Put together, the phrase "fully approved" from the opening scene is exactly the kind of statement Section 10(c) is aimed at if it is not true. A broker who claims an approval or affiliation that does not exist is on the wrong side of the Act.
What does Section 10 say an agent must do?
Two positive duties matter most. Section 10(d) says the agent shall facilitate the possession of all the information and documents the allottee is entitled to at the time of booking any plot, apartment or building. Section 10(b) says the agent shall maintain and preserve such books of account, records and documents as may be prescribed. Section 10(e) adds such other functions as may be prescribed by the rules.
The booking-stage duty is the one to use. If you are being asked for a token amount, ask the broker, in writing, for the project's registration details and the documents you are entitled to see at that stage. A broker who is registered and aware of Section 10(d) should treat that as a normal request rather than an obstacle.
PropNewz explained how to check whether a Mumbai broker is registered in our earlier guide to RERA broker registration. This piece picks up from there: once you know the broker is registered, here is what that registration obliges them to do.
What penalties apply to an agent who breaks the rules?
Three tiers. Section 62 says that if a real estate agent fails to comply with or contravenes Section 9 or Section 10, the agent is liable to a penalty of ten thousand rupees for every day the default continues, which may cumulatively extend up to five per cent of the cost of the plot, apartment or building for which the sale or purchase was facilitated, as determined by the Authority.
Section 65 covers an agent who fails to comply with the Authority's orders or directions: a penalty for every day of default that may cumulatively extend up to five per cent of the estimated cost of the plot, apartment or building for which the sale was facilitated. Section 66 covers non-compliance with the Appellate Tribunal's orders, decisions or directions: imprisonment for up to one year, or a fine for every day of default that may cumulatively extend up to ten per cent of that cost, or both.
| Provision | What triggers it | Maximum consequence for the agent |
|---|---|---|
| Section 9(1) | Facilitating a sale in a registered project without agent registration | Penalty under Section 62 |
| Section 10(a) | Facilitating a sale in an unregistered project | Penalty under Section 62 |
| Section 62 | Breach of Section 9 or Section 10 | Rs 10,000 per day, up to 5 per cent of the unit cost |
| Section 65 | Not complying with Authority orders | Up to 5 per cent of the estimated unit cost |
| Section 66 | Not complying with Appellate Tribunal orders | Fine up to 10 per cent of the estimated unit cost, or up to 1 year, or both |
Can a buyer complain about a broker?
Yes. Section 31(1) lets any aggrieved person file a complaint with the Authority or the adjudicating officer for any violation or contravention of the Act, rules or regulations against any promoter, allottee or real estate agent. A broker who misrepresented an approval, or who sold you into an unregistered project, can be the subject of that complaint.
A complaint against the broker does not replace a complaint against the builder. If the problem is the project itself, such as a delay or a change to the sanctioned plan, the promoter's obligations are the main target and the broker's conduct is a secondary issue. Where the broker's statements were the reason you booked, both can be raised.
Keep the evidence that matters. WhatsApp messages, brochures handed over by the broker, emails and payment acknowledgements are the material that shows what was represented and when.
How should a Mumbai buyer use these rules in practice?
Treat Section 10 as a checklist the broker should already be following, and ask for proof of each item before money moves. Use this list.
- Ask for the broker's MahaRERA agent registration number and check it on the regulator's portal.
- Ask for the project's MahaRERA registration number and check that the project, or the phase you are buying in, is registered.
- Request in writing the information and documents you are entitled to at booking, citing Section 10(d).
- Save every claim the broker makes about approvals, amenities or affiliations, in writing or as a screenshot.
- Compare those claims against the project's registered details before paying a token amount.
- Pay booking amounts to the promoter's account, not to the broker, and keep the receipt.
- If a claim turns out false, consider a Section 31 complaint that names the agent as well as the promoter.
If your concern is the builder's side of an order rather than the broker's, our explainer on how RERA orders bind buyers under Sections 67 and 68 shows the matching penalties that apply to allottees.
Frequently asked questions
Can a broker sell a flat in a project not registered with RERA?
No. Section 10(a) of the RERA Act says a registered real estate agent shall not facilitate the sale or purchase of any plot, apartment or building in a project, or part of one, being sold by the promoter in any planning area, which is not registered with the Authority. A breach attracts a penalty under Section 62.
Are property portals covered by RERA agent rules?
Yes. The Ministry of Housing and Urban Affairs FAQs of July 2025 describe the Section 2(zm) definition of real estate agent as very broad and inclusive, and say web portals engaged in selling plots or apartments are covered and must comply with the duties under the Act, rules and regulations.
What is the penalty for a broker who breaks Section 10?
Section 62 of the RERA Act says an agent who fails to comply with or contravenes Section 9 or Section 10 is liable to a penalty of ten thousand rupees for every day of default, which may cumulatively extend up to five per cent of the cost of the unit for which the sale or purchase was facilitated.
What documents must a broker help a buyer get at booking?
Section 10(d) of the RERA Act says a registered agent shall facilitate the possession of all the information and documents the allottee is entitled to at the time of booking. Ask for the project registration details and booking-stage documents in writing before paying a token amount to the promoter.
Last updated 2026-10-24. PropNewz Team.
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