Section 62 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.
Section 62 is the penalty for real estate agents who fail to register or who breach the duties set for them. A real estate 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 during which 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 has been facilitated. Agents who are unsure of their position can speak to our legal dispute resolution team.
A real estate 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 during which such default continues, which may cumulatively extend up to five per cent of the cost of the plot, apartment or buildings, as the case may be, of the real estate project, for which the sale or purchase has been facilitated, as determined by the Authority. No imprisonment is stated.
Section 62 at a glance
| Item | What the section says |
|---|---|
| Who | A real estate agent |
| Trigger | Fails to comply with or contravenes section 9 (registration) or section 10 (functions) |
| Daily amount | Ten thousand rupees for every day during which the default continues |
| Cap | May cumulatively extend up to five per cent of the cost of the plot, apartment or buildings, as the case may be, of the real estate project for which the sale or purchase has been facilitated |
| Who determines | The Authority |
| Imprisonment | None stated |
The text, in parts
"If any real estate agent fails to comply with or contravenes the provisions of section 9 or section 10, he shall be liable to a penalty of ten thousand rupees for every day during which such default continues, which may cumulatively extend up to five per cent. of the cost of plot, apartment or buildings, as the case may be, of the real estate project, for which the sale or purchase has been facilitated as determined by the Authority."
Trigger. Section 9 is the registration of real estate agents, and section 10 lists the functions and duties of agents. See our post on registration of a real estate agent under section 9 and our article on section 10. The marginal heading calls this a penalty for "non-registration and contravention under sections 9 and 10".
Daily amount. "Ten thousand rupees for every day during which such default continues." This is a fixed daily amount, unlike the penalties for promoters in sections 60 and 61, which are percentage ceilings only. The words are "shall be liable to a penalty of", which reads as the amount per day, but the whole figure is subject to the cap and to what the Authority determines.
Cap. The daily amounts "may cumulatively extend up to five per cent of the cost of plot, apartment or buildings, as the case may be, of the real estate project, for which the sale or purchase has been facilitated". Two points:
- The base is the cost of the plot, apartment or building that the agent facilitated, not the estimated cost of the whole project as in the promoter penalties.
- It is the sale or purchase facilitated by the agent. An agent with no facilitated transaction has no base to which the percentage can attach. The text does not say what happens in that case.
"As determined by the Authority" attaches to the amount. The section does not say whether the Authority must impose the full daily rate up to the cap.
A worked example
An agent, Mr Kapoor, facilitates the sale of an apartment costing Rs 80 lakh while unregistered. If the default continues, the penalty accrues at Rs 10,000 per day. Five per cent of Rs 80 lakh is Rs 4 lakh. At Rs 10,000 per day the cap is reached after forty days of default. If the agent facilitates sales of several apartments, the text speaks of "the cost of plot, apartment or buildings, as the case may be, of the real estate project, for which the sale or purchase has been facilitated"; it does not say whether the cap is counted per transaction or in total, so the position should be checked with the Authority's order.
Comparison with the other agent penalties
| Section | Default | Penalty | Cap | Imprisonment |
|---|---|---|---|---|
| 62 | Contravenes section 9 or 10 | Ten thousand rupees for every day | Five per cent of cost of plot, apartment or buildings facilitated | None |
| 65 | Does not comply with orders or directions of the Authority | Penalty for every day (no amount stated) | Five per cent of estimated cost of plot, apartment or building facilitated | None |
| 66 | Does not comply with orders, decisions or directions of the Appellate Tribunal | Fine for every day (no amount stated) | Ten per cent of estimated cost of plot, apartment or building facilitated | Up to one year, or fine, or both |
Sections 65 and 66 are explained in our article on sections 65 and 66. Note that section 62 uses "cost" while sections 65 and 66 use "estimated cost"; the words are printed as such and we do not treat them as the same.
What the section does not say
- It does not say when the daily clock starts, for example from the date of a notice or from the first act of brokerage without registration.
- It does not say whether the default is "continuing" until the agent registers or until the Authority orders otherwise.
- It does not say how the Authority treats an agent who registers late; the Authority's regulations and the State rules govern the process.
Process and recovery
The penalty is determined by the Authority. An unpaid penalty is recoverable as arrears of land revenue under section 40(1); see our article on section 40. The agent may appeal to the Appellate Tribunal under section 44. Section 43(5)'s deposit proviso refers to a promoter only. Agents are also within section 69 where the agent is a company or firm; see our article on section 69. For a general overview see Penalties Under RERA.
Need help as a real estate agent?
Registration and keeping to the duties in section 10 are the two ways to stay out of section 62. We can check your position, help with registration under your State's process and respond to an Authority notice. Contact us at legal dispute resolution.
Key takeaways
- An agent who breaches section 9 or 10 is liable to Rs 10,000 for every day of default.
- The total may cumulatively extend up to five per cent of the cost of the plot, apartment or building facilitated.
- The base is the cost of what the agent facilitated, not the whole project's estimated cost.
- No imprisonment is stated in section 62.
- The Authority determines the amount; an unpaid penalty is recoverable under section 40.
Read next
- Section 10: functions of real estate agents
- Sections 65 and 66: agent not complying with Authority or Tribunal orders
- RERA Registration of Real Estate Agent: Section 9
- Penalties Under RERA: Promoter, Agent, Allottee
Disclaimer: Based on the Real Estate (Regulation and Development) Act, 2016 as enacted, as consulted on 1 October 2026. Rules, forms, fees and procedures are made by each State and Union territory and its Real Estate Regulatory Authority and differ from State to State. This article is general information, not legal advice; check the official text and your State's rules before acting.