RERA in Karnataka explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Karnataka RERA (K-RERA) regulates real estate under the Real Estate (Regulation and Development) Act, 2016 and the Karnataka RERA Rules, 2017. Projects over 500 sq m or with more than 8 units must register before marketing, keep 70% of allottee funds in escrow, file quarterly updates, and meet declared timelines. Agents must register too. Verify fees on rera.karnataka.gov.in.
Overview
The Real Estate (Regulation and Development) Act, 2016 (RERA) established state regulators to protect homebuyers and improve transparency. In Karnataka, the Karnataka Real Estate Regulatory Authority (K-RERA) registers projects and agents, enforces disclosures and fund-utilisation rules, and adjudicates complaints from buyers and promoters.
Applicable Law and Authority
The governing law is the RERA Act, 2016, read with the Karnataka Real Estate (Regulation and Development) Rules, 2017 and K-RERA regulations. The Karnataka Real Estate Appellate Tribunal hears appeals against the Authority\'s orders.
Who Must Register
Registration is mandatory before any advertising, marketing, booking or sale where:
- the land to be developed exceeds 500 square metres; or
- the project has more than 8 apartments (counting all phases together); and
- the project did not receive a completion certificate before commencement of the Act.
Real estate agents operating in registered projects must obtain separate agent registration and quote the number in their dealings.
Registration Process and Fees
Promoters apply online on the K-RERA portal with project details, statutory approvals, title and encumbrance particulars, the sanctioned plan, the proforma agreement and declaration, and the applicable fee (a per-square-metre fee that varies by project type, subject to a cap). The table below summarises key registration types.
| Registration type | Who applies | Fee basis (indicative) |
|---|---|---|
| Project registration | Promoter/developer | Per sq m of area, varying by project type, subject to cap |
| Agent registration — individual | Broker/agent | Fixed fee (lower) |
| Agent registration — firm/company | Entity | Fixed fee (higher) |
| Extension of registration (Sec 6) | Promoter | Prescribed fee (indicative) |
Fees are indicative; confirm current amounts on the K-RERA portal.
Key Obligations — the 70% Rule and Disclosures
The central financial safeguard is the 70% escrow rule under Section 4(2)(l)(D): at least 70% of the money collected from allottees must be kept in a separate designated bank account and spent only on the land and construction cost of that project. Withdrawals are allowed in proportion to project completion, certified by a practising engineer, architect and chartered accountant. Promoters must also upload quarterly progress updates, maintain accurate project pages, and sell on a carpet-area basis.
Timelines, Complaints and Penalties
Registration is valid for the declared completion period and can be extended under Section 6. Buyers, promoters or agents may file complaints with K-RERA, with appeals to the Karnataka Real Estate Appellate Tribunal. Penalties are stringent: up to 10% of the estimated project cost for non-registration (Section 59), with imprisonment up to three years or further penalty for continued default. Providing false information or contravening orders attracts additional penalties under Sections 60–64.