RERA basics for brokers in Karnataka and Tamil Nadu

This guide explains the basics in plain English. It is not legal advice. Laws, rules and authority circulars change, and your situation may be different. For a specific question, read the Act and your state's rules on the official portal and speak to a qualified lawyer.

What RERA is

The Real Estate (Regulation and Development) Act, 2016, usually called RERA, is a central law that set up a regulator for real estate in each state. Each state has its own authority and its own rules under the Act. For brokers in this region the two that matter most are:

• Karnataka: the Karnataka Real Estate Regulatory Authority. Official portal: rera.karnataka.gov.in
• Tamil Nadu: the Tamil Nadu Real Estate Regulatory Authority. Official portal: www.rera.tn.gov.in

Both portals let anyone search registered projects and registered agents. Use them as your source of truth rather than a brochure or a forwarded message.

Project registration

Under the Act, most real estate projects, including many plotted developments, must be registered with the state authority before they are advertised, marketed or sold. There are exemptions for small projects, which the Act defines by land area and number of units. Registered projects get a registration number and a project page on the portal with details the promoter has filed.

For a broker, the practical points are:

• Check the registration yourself on the official portal before you market a project. Confirm the project name, promoter and phase match what you are selling.
• Quote the registration number where the rules require it, including in advertisements and marketing material.
• Read the project page. It usually shows the promoter's declared completion date, approvals and other filed details that buyers will ask about.

Agent registration

The Act also requires real estate agents who facilitate the sale of units in registered projects to register with the state authority. Registration is with the state where you work, and it must be renewed. Your agent registration number belongs on your marketing material and communications as your state's rules require.

The Act lists duties for registered agents. In plain terms, these include not facilitating the sale of a project that should be registered but is not, keeping proper books and records, not making false or misleading statements about a project, and helping the buyer get the documents they are entitled to. Read the exact wording in the Act and your state's rules.

Terms buyers will ask you about

Carpet area

RERA defines carpet area as the net usable floor area of an apartment, excluding external walls, service shafts, exclusive balconies or verandahs and exclusive open terraces, but including internal partition walls. Buyers increasingly compare prices on carpet area rather than super built-up area. Be ready to explain both, clearly and without blurring the two.

Agreement for sale

The Act limits how much a promoter may collect as an advance before a written agreement for sale is executed and registered. Many state rules also prescribe a model form of agreement. If a buyer is asked for a large payment with no agreement, encourage them to check the rules before paying.

Completion date and delays

The promoter declares a completion date when registering. The Act gives buyers remedies when a promoter does not deliver as promised. You do not need to explain those remedies in detail, but do not make promises about dates that differ from what is filed.

Complaints

Both authorities accept complaints from buyers, and complaints can be filed against agents as well as promoters. The best protection is simple: market only what you have checked, say only what you can show in writing, and keep a record of what you shared with each buyer.

A short checklist

1. Keep your own agent registration current and display the number where required.
2. Check every project on the official portal before marketing it.
3. Put the project registration number on listings and brochures where the rules require it.
4. Explain carpet area honestly and share the filed details buyers ask for.
5. Keep written records of what you told each buyer and when.

Again, this is a general explainer, not legal advice. When in doubt, go to the official Karnataka or Tamil Nadu portal linked above and consult a lawyer.