Buying a Studio, Shop or Office Unit in Bengaluru? RERA's Protections Apply to Commercial Too

A young professional in Bengaluru is weighing two purchases with roughly the same budget: a compact flat on the city's edge or a small studio unit in a mixed-use building closer to work, marketed as suitable for a home office or rental. The studio's brochure is glossy and the broker is persuasive. What the buyer is less sure about is whether the protections she has read about for flat buyers apply to a unit that is sold as commercial or mixed-use.

They do, as a matter of the Act's coverage. MoHUA's official FAQ on the Real Estate (Regulation and Development) Act, 2016 confirms that the Act covers both residential and commercial real estate. This guide explains what that means for buyers of studios, shops and office units in Bengaluru, and what to check before paying.

The short answer. RERA covers commercial as well as residential real estate, through the definitions of apartment in Section 2(e) and building in Section 2(j). A registered mixed-use project must be registered before it is advertised or sold, community and commercial facilities are part of the common areas, and brokers and web portals selling units in registered projects are covered as real estate agents. The trade-off: the law gives a commercial unit buyer the same framework as a flat buyer, but commercial units often come with different use rules, tax treatment and financing terms, so the legal protection is only part of the diligence.

Does RERA really cover commercial units?

MoHUA's Frequently Asked Questions on the Real Estate (Regulation and Development) Act, 2016 answers directly. It says the Act covers both residential and commercial real estate, and explains that Section 2(e) defines apartment and Section 2(j) defines building in terms that include both.

So a shop, an office or a studio unit in a registered project is not outside the Act because it is not a home. The same core framework applies: registration and disclosure, the agreement, the rights to timely possession and the remedies for delay. The FAQ describes Section 18 as giving an allottee whose possession is delayed the right to withdraw with a refund plus interest and compensation, or to stay and receive interest for every month of delay.

When must a mixed-use project be registered?

The FAQ says that under Section 3(1) the promoter is required to register its project with the Real Estate Regulatory Authority before any advertising, marketing, booking, selling, offering for sale or inviting persons to purchase in the project. For a mixed-use project, that includes the commercial units being marketed alongside the flats.

The FAQ also lists the Section 3(2) exemptions: projects where the land does not exceed 500 square metres or the apartments do not exceed eight, inclusive of all phases; projects that received a completion certificate before the Act commenced; and renovation, repair or redevelopment without marketing, advertising, selling or new allotment. A small standalone commercial building may fall within these, so ask the promoter which position applies.

Our earlier piece on verifying RERA registration before advertising walks through how to check a registration number.

How do common areas work in a mixed-use building?

The FAQ says Section 2(n) defines common areas to include community and commercial facilities, so they are an integral part of the project, to be handed over to the association of allottees. In a mixed-use building, that matters because shared lobbies, lifts, parking and facilities may serve both residential and commercial owners.

Before you buy, read how the agreement describes the common areas and which facilities your unit can use. Ask how maintenance will be shared between residential and commercial owners, and whether the association will include both. A clear answer now avoids disputes later about who pays for what.

Is the broker or portal selling the unit covered?

Yes, if they are selling units in a registered project. The FAQ explains that Section 2(zm) defines real estate agents in a broad and inclusive way, so web portals and other agencies engaged in selling plots or apartments are covered and must comply with the Act's duties. It adds that Section 9 requires an agent engaged in selling a registered real estate project to register with the Authority, and that Section 10 sets out the agent's functions and duties.

For a buyer, that is a simple check. Ask the broker or portal for its agent registration number and verify it on the Karnataka RERA portal. A registered agent is accountable under the Act; an unregistered one gives you less to rely on if something goes wrong.

What about parking with a commercial unit?

The FAQ says Section 2(y) defines a garage as a place within a project with a roof and walls on three sides for parking any vehicle, but not an unenclosed or uncovered parking space such as open parking areas. It adds that a garage can be sold to the allottee independently of the apartment.

Commercial units often depend on parking for clients or staff. Read exactly what the agreement gives you: a garage as defined, a covered space, or only a right to use open parking that forms part of the common areas. Our explainer on garages, open parking and common areas covers the distinction in more detail.

What if the brochure makes claims about the unit's use or income?

Studio and commercial units are often marketed on what they could be used for, such as a home office, a clinic or a rental. The FAQ explains that under Section 12 the promoter is responsible for the veracity of all information contained in the advertisement and the prospectus, and that if any person sustains loss because of false information in them, the promoter is liable to make good that loss.

That gives a buyer two reasons to keep the paper trail. First, a claim about permitted use should match the sanctioned plan; if the brochure says a unit can be used as an office but the approved use says otherwise, raise it in writing before booking. Second, any statement about income should be read as marketing unless it appears in the agreement itself. Save screenshots of the listing, the brochure and any email, with dates.

Whether a particular claim is false, and what loss it caused, would be for the Authority or the Adjudicating Officer to decide. Your job is to make sure the record exists if it is ever needed.

What else should a commercial unit buyer check?

RERA's coverage is the starting point, not the whole picture. A commercial or mixed-use unit can differ from a flat in its permitted use, the way it is taxed and the way lenders treat it, and those questions sit outside the Act. Ask the promoter for the approved use of the unit on the sanctioned plan, ask your lender how it classifies the unit, and ask a tax adviser how the purchase and any rental income will be treated. Whether you are looking at a project in Hebbal such as Embassy One Apartments or a smaller building elsewhere, the checklist below applies.

1. Confirm that the unit is part of a project registered on the Karnataka RERA portal, and note the registration number.
2. Check that the registration number appears on the brochure, listing and any advertisement.
3. Ask for the approved use of the unit on the sanctioned plan, and keep a copy.
4. Read how the agreement describes common areas and which facilities your unit may use.
5. Ask how maintenance will be shared between residential and commercial owners.
6. Get the broker's or portal's agent registration number and verify it on the portal.
7. Confirm exactly what parking is included and whether it is a garage as defined in Section 2(y).

Frequently asked questions

Does RERA cover commercial units such as shops and offices?

Yes. MoHUA's RERA FAQ says the Act covers both residential and commercial real estate, because Section 2(e) defines apartment and Section 2(j) defines building in terms that include both. A buyer of a shop, office or studio unit in a registered project should therefore look for the same registration, disclosures and agreement protections as a flat buyer.

Must a mixed-use project be registered before it is advertised?

MoHUA's FAQ says that under Section 3(1) the promoter is required to register its project with the Real Estate Regulatory Authority before any advertising, marketing, booking, selling, offering for sale or inviting persons to purchase in the project. That applies to the commercial units in a project as much as to its flats, subject to the Section 3(2) exemptions.

Are property web portals and brokers selling commercial units covered by RERA?

According to MoHUA's FAQ, Section 2(zm) defines real estate agents broadly, so web portals and other agencies engaged in selling plots or apartments in registered projects are covered and must comply with the Act's duties. Section 9 requires such agents to register with the Authority, and Section 10 sets out their functions and duties.

Is a covered garage or parking space sold separately from a commercial unit?

MoHUA's FAQ says Section 2(y) defines a garage as a place within a project with a roof and walls on three sides for parking, excluding unenclosed or uncovered open parking areas, and that a garage can be sold to the allottee independently of the apartment. Check exactly what parking your agreement includes and how it is described.

Last updated 2026-11-13. PropNewz Team.