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Brokers and channel partners need RERA registration to sell registered projects. Who needs it, documents, duties under Section 10, and penalties.

Legal advice and representation for borrowers, guarantors and lenders in RERA Matters, led by Advocate BK Singh.

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If you earn a commission by bringing buyers to builders, you're almost certainly a "real estate agent" under the Real Estate (Regulation and Development) Act, 2016, whether you call yourself a property dealer, a broker, a consultant or a channel partner. And if you facilitate sales in RERA-registered projects, you need your own RERA registration. Selling without it can lead to daily penalties, problems recovering your commission, and a builder that refuses to work with you.

This page explains who needs to register, how registration works in Uttar Pradesh, Haryana and Delhi, what duties registration brings, and how agents get into trouble.

Who is a real estate agent?

Section 2(zm) of the Act defines a real estate agent broadly. It covers 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, with another person, or who introduces prospective buyers and sellers to each other for negotiation, and receives remuneration or fees or any other charges, whether as commission or otherwise. The definition expressly includes a person who introduces, through any medium, prospective buyers and sellers to each other.

In practice that includes:

  • individual property dealers and brokers;
  • brokerage firms, partnerships and companies;
  • channel partners working with developers on new launches;
  • online property platforms that act as agents for specific projects and earn commission on sales; and
  • sales consultants and "investment advisors" who earn fees on property sales.

An employee of a developer selling the developer's own units isn't an agent in this sense, because the developer itself is the promoter. A lawyer or chartered accountant giving professional advice on a purchase isn't an agent either, unless they're also introducing buyers for a commission.

When registration is required

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 it, being sold by a promoter in any planning area, without obtaining registration under the section.

So the requirement attaches to sales in RERA projects, which in the NCR covers nearly every new group housing, plotted and commercial project. Resale of completed flats between individuals, where no promoter is selling, is generally outside the requirement, though some states have taken broader views in their rules.

Registration is state-specific. An agent who works with projects in both Noida and Gurugram needs registration with both UP RERA and Haryana RERA, and with Delhi RERA if it also sells Delhi projects.

How registration works

  1. Application on the state authority's portal, in the prescribed form, with the prescribed fee. Fees are usually lower for individuals than for firms and companies.
  2. Documents such as identity and address proof, PAN, photographs, details of the business (for firms and companies: incorporation documents, details of partners or directors, and their identity documents), and income tax returns for recent years, where the rules ask for them.
  3. Scrutiny by the authority, which may raise queries.
  4. Grant of registration with a registration number, valid for the period fixed by the state rules, commonly five years in many states, and renewable.

Once registered, the agent must quote the registration number in every sale it facilitates.

The duties of a registered agent

Section 10 sets out what every registered agent must do and must not do.

  • Not facilitate the sale or purchase of any unit in a project that isn't registered. This is the most important duty, and the one most often breached during pre-launch campaigns.
  • Maintain and preserve books of account, records and documents as prescribed.
  • Not involve itself in unfair trade practices, such as making false statements about the standard or quality of services, representing that the promoter or itself has approvals or affiliations it doesn't have, or making false or misleading statements about the services to be provided.
  • Help the allottee and the promoter to obtain the information and documents they're entitled to at the time of booking.
  • Discharge other functions as prescribed by the state rules.

In other words, an agent is expected to sell only registered projects, to be truthful about them, and to keep proper records.

Penalties

Section 62 provides that if an agent fails to comply with Section 9 or Section 10, it's liable to a penalty of Rs 10,000 for every day of default, which may cumulatively extend up to 5% of the cost of the plot, apartment or building whose sale or purchase was facilitated. Section 65 provides a further penalty for agents who don't comply with the authority's orders, and Section 66 deals with non-compliance with orders of the appellate tribunal, with imprisonment or fine.

The authority can also revoke an agent's registration if the agent breaches the conditions of registration or the Act, or obtained registration through misrepresentation.

Why registration matters commercially

  • Builders insist on it. Registered developers face their own risks if they work with unregistered agents. Most reputable developers won't onboard a channel partner without a RERA number, and won't pay commission on sales facilitated by an unregistered agent.
  • Recovering commission. An unregistered agent trying to recover commission from a builder may face the argument that it was facilitating sales in breach of the Act. Registration removes that defence.
  • Buyer confidence. Buyers increasingly check agents' RERA numbers on the authority's website.
  • Online listings. Property portals and advertising platforms increasingly ask for RERA numbers.

Common ways agents get into trouble

  • Pre-launch selling. Collecting expressions of interest or tokens for a project that hasn't yet been registered. Under Sections 3 and 10, both the promoter and the agent can be liable.
  • Over-promising. Telling buyers that possession is "guaranteed" by a date, that returns are "assured", that a metro station is "approved", or that a project has approvals it doesn't. These can be unfair trade practices under Section 10 and may expose the agent to claims from buyers.
  • Handling buyer money. Collecting cheques in the agent's own name, or cash, instead of directing buyers to pay the developer directly. This creates serious legal and practical risk.
  • Working across states without registration in each state.
  • Letting registration lapse without renewal.
  • Not quoting the registration number on advertising and documents.

Agents and buyer complaints

Buyers can complain against agents under Section 31, just as they can against builders. The complaints we see most often against agents are:

  • the agent sold a unit in an unregistered project;
  • the agent made specific promises about possession, returns or approvals that turned out to be false;
  • the agent collected money that never reached the developer; and
  • the agent failed to pass on documents or information the buyer was entitled to.

Where the buyer has also suffered loss, compensation can be sought. For agents, the best protection is a simple discipline: sell only registered projects, give buyers the developer's official documents rather than your own summaries, never collect buyer money in your own name, and keep written records of what you told buyers.

Agents and developers: the channel partner agreement

Most agents working on new launches sign a channel partner agreement with the developer. It's worth reading carefully, because it governs commission, payment timelines and disputes. Points to check include:

  • the commission rate and when it becomes payable: on booking, on agreement, on a percentage of payment, or on possession;
  • clawback of commission if the buyer cancels;
  • exclusivity and territory, if any;
  • the developer's obligation to share project updates and registration details with the agent;
  • indemnities, especially any requiring the agent to indemnify the developer against buyer claims about statements the developer itself authorised; and
  • dispute resolution, including arbitration clauses.

Disputes over commission between an agent and a developer are usually commercial disputes, outside RERA's main focus, and are resolved through civil courts, commercial courts or arbitration under the channel partner agreement.

Renewal and changes

An agent's registration must be renewed before it expires, in the manner the state rules provide. Changes in the agent's details, such as a new office address, a change in partners or directors, or a change of business name, should be updated with the authority. A firm that converts into a company, or an individual who incorporates their business, may need a fresh registration for the new entity.

Training and professional standards

Some authorities have started to require more than registration. MahaRERA, for example, introduced mandatory training and certification for real estate agents operating in Maharashtra. Other states may follow. Even where it isn't compulsory, agents who understand the Act, the model agreement for sale, and the basics of approvals and title tend to keep their clients out of trouble and themselves out of complaints.

A practical compliance routine for agents

Registration is a one-time task every few years. Compliance is daily. Agents who build a few habits into their work rarely face complaints or penalties.

Before marketing any project

  • Check the project's registration on the state authority's website, and save a screenshot with the date.
  • Check that the registration covers the specific phase and towers you're selling.
  • Download the registered layout, approvals and specifications, so that what you tell buyers matches the official record.
  • Note the declared completion date. Don't promise a different one.

When advertising

  • Quote your own agent registration number, and the project's registration number and the authority's website, on every advertisement, brochure, social media post and listing.
  • Use the developer's approved marketing material. Don't create your own claims about returns, appreciation, approvals or nearby infrastructure.
  • Avoid words like "guaranteed", "assured" and "100% safe" unless the developer has made a specific written commitment that you can show.

When dealing with buyers

  • Give buyers the developer's official documents: the allotment letter, agreement for sale, payment plan and specifications, and point them to the RERA page.
  • Direct all payments to the developer's designated account. Never collect money in your own name.
  • Keep a short written record of each enquiry, site visit and booking, including what was discussed.
  • If a buyer asks a question you can't answer, get the answer from the developer in writing.

Record-keeping

  • Maintain books of account for commissions received, as Section 10 and the rules require.
  • Keep copies of booking forms you facilitated, and the developer's acknowledgements.
  • Keep your channel partner agreements and all commission invoices together.

Agents in pre-launch campaigns

Pre-launch campaigns are where agents face the greatest risk. A developer may ask channel partners to "build interest" before registration, collect EOIs, or circulate early price lists. The agent may feel it can't refuse without losing the mandate. But under the Act, facilitating sales in an unregistered project is a breach by the agent, not just the developer, and buyers who later complain will name the agent too.

The safest course is to wait for the registration number before any marketing. If a developer insists otherwise, ask for written confirmation that the project is registered, with the number, before you begin. If it can't give one, that's your answer.

When a developer doesn't pay commission

Commission disputes are one of the commonest problems agents bring to us. Typical situations include a developer refusing to pay because the buyer cancelled, delaying payment until the buyer's loan is disbursed or possession is given, reducing commission unilaterally after a "policy change", or denying that the agent introduced the buyer at all.

The answer almost always lies in the channel partner agreement and the paper trail: the agent's registration of the lead with the developer, the booking form showing the agent's code or name, emails confirming the commission rate, and the developer's own records. Where the agreement has an arbitration clause, disputes go to arbitration. Where it doesn't, a civil suit or, for larger sums, a commercial suit may be appropriate. A clear legal notice setting out the agreement, the booking and the amount due often brings payment without proceedings.

An agent who wasn't registered under RERA at the time of the sale is in a much weaker position in these disputes, because the developer will argue that the agent's services were themselves in breach of the Act. That's another reason to register before working on any RERA project.

Agents responding to penalty notices

If an authority issues a show-cause notice or penalty notice to you as an agent, for example for advertising an unregistered project or for working without registration, respond in writing within the time given, with documents. Common lines of response include showing that you were in fact registered at the relevant time, that the project was registered, that the advertisement was issued by someone else, or that you stopped the activity immediately on learning of the issue. Penalties are discretionary up to the statutory maximum, and a prompt, honest response with corrective steps usually makes a real difference to the outcome. See our page on penalty notices.

Online platforms and digital marketers

Property portals and digital marketing agencies sometimes ask whether they need agent registration. The answer depends on what they do. A platform that only publishes listings for a fixed advertising fee, without introducing buyers to sellers for remuneration tied to sales, may not be an agent. A platform or agency that earns commission on sales in RERA projects, runs lead-generation campaigns paid per booking, or acts for developers in negotiating sales, is likely to fall within the definition. Where there's doubt, registering is usually the safer course, and authorities have increasingly expected digital intermediaries to comply.

Registering as an individual or as a business

Agents often ask whether to register personally or through a firm or company. A few considerations:

  • Who signs the channel partner agreements and receives commission? The registered agent should be the same person or entity that contracts with developers and invoices commission. A mismatch creates arguments in commission disputes.
  • Do you have employees or sub-agents? A firm or company registration covers the business. Individuals working for it under its name may still need to be registered or covered according to the state's rules, so check before relying on the firm's registration for everyone.
  • Liability. Operating through a company or LLP may limit personal liability for some business debts, but it doesn't protect individuals from penalties or claims arising from their own conduct.
  • Tax and GST. The choice of structure has tax consequences that are worth discussing with a chartered accountant.

Whatever you choose, keep the RERA registration, the GST registration, the bank account and the channel partner agreements all in the same name.

Where agents register

For NCR agents, that usually means UP RERA (for Noida, Greater Noida, the Yamuna Expressway and Ghaziabad), Haryana RERA (for Gurugram and the rest of Haryana) and Delhi RERA (for Delhi). Agents dealing with projects in other states need registration there too. We handle registrations in the NCR states and, through associates, in others.

Our view

Registration is cheap compared with the cost of working without it. For a serious agent, it's also a mark of professionalism that builders and buyers increasingly look for. We're happy to handle registration across the states you work in, review your channel partner agreements, and set up a simple compliance routine so that your business grows without legal surprises.

Agents and buyer protection: why it matters to you

It's easy to see RERA's rules for agents as paperwork. In practice, they protect agents as much as buyers. The agent who sold only registered projects, quoted registration numbers, used the developer's official material and kept records is the one who can show, years later, that a delayed project or a missing amenity was the developer's failure and not the agent's misrepresentation. The agent who promised possession dates, assured returns or approvals that didn't exist is the one who ends up named in buyers' complaints alongside the developer. With so many NCR projects having run late, that distinction has become very real for brokers who sold heavily in the 2010s.

If you're an agent who sold units in a project that has since gone badly wrong, and buyers are now raising questions about what you told them, it's worth getting advice early, before a complaint is filed. Gathering your records and the developer's official materials now is far easier than reconstructing them later.

How we help agents

  1. Check whether you need registration, in which states, and as an individual or as a firm or company.
  2. Prepare and file the application on each state authority's portal, and handle queries.
  3. Review your channel partner agreements with developers, focusing on commission, clawback and indemnities.
  4. Set up simple compliance practices: quoting registration numbers, checking project registration before marketing, record-keeping, and buyer communication.
  5. Handle renewals and updates.
  6. Defend complaints and penalty notices against agents before the authority.
  7. Pursue commission claims against developers through the appropriate forum.

Documents checklist

Individuals

  • PAN card, Aadhaar or other identity proof
  • Address proof for residence and office
  • Passport-size photographs
  • Recent income tax returns, if required by the state rules
  • Details of any earlier registration in other states

Firms and companies

  • Partnership deed, LLP agreement, or certificate of incorporation and memorandum and articles
  • PAN of the entity and GST registration, if any
  • Identity and address proof of partners or directors
  • Board resolution or authority letter for the authorised signatory
  • Office address proof
  • Recent income tax returns of the entity, if required

Frequently asked questions

Do I need RERA registration to work as a property dealer?

If you facilitate sales in RERA-registered projects for a fee or commission, yes. Registration is required under Section 9.

Is registration needed for resale deals?

Generally, the requirement attaches to sales in projects being sold by a promoter. Pure resales of completed flats between individuals are usually outside it, though some states have broader rules.

I work in Noida and Gurugram. Do I need two registrations?

Yes. Registration is state-specific, so you need UP RERA and Haryana RERA registration, and Delhi RERA if you sell Delhi projects.

What's the penalty for working without registration?

Under Section 62, Rs 10,000 per day of default, up to 5% of the cost of the unit whose sale was facilitated.

Can I sell a project that isn't registered?

No. Section 10 prohibits agents from facilitating sales in unregistered projects.

How long is registration valid?

For the period fixed by the state rules, commonly five years, after which it must be renewed.

Can a buyer complain against me?

Yes. Buyers can complain against agents under Section 31 for breaches of the Act.

Can RERA help me recover commission from a developer?

Commission disputes are usually commercial disputes resolved under the channel partner agreement, in civil or commercial courts or arbitration, rather than before RERA.

General information about agent registration under the Real Estate (Regulation and Development) Act, 2016. Fees, forms and validity periods are set by state rules and change from time to time. Not legal advice.

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