1. Right to Buy Only in a Registered Project
Under Section 3 of the Act, a promoter cannot advertise, market, book, sell or offer a plot, apartment or building for sale in a project that requires registration unless it is registered with the state Real Estate Regulatory Authority. Projects with a land area above 500 square metres or more than eight apartments generally require registration. Buyers can check registration details, validity and promoter information on the official Karnataka RERA portal before paying any money.
Section 13 also restricts a promoter from accepting more than 10% of the cost of the apartment as an advance or application fee without first entering into a registered written agreement for sale. This protects buyers from large unsecured payments at the booking stage.
2. Right to Information and Transparency
Buyers are entitled to know the sanctioned plans, layout plans, specifications, stage-wise completion schedule, and the declared date of possession. The promoter must upload these details on the RERA website and keep them updated through quarterly updates. Under Section 11, the promoter is also responsible for disclosing the status of approvals and the legal title of the land.
The agreement for sale must follow the format prescribed by the state rules and should specify the carpet area of the apartment. Under RERA, the sale price is linked to carpet area, which prevents buyers from paying for loosely defined super built-up area.
3. Right to Money Safety: The 70% Escrow Rule
Section 4(2)(l)(D) requires promoters to deposit 70% of the amounts collected from buyers into a separate designated bank account, to be used only for construction cost and land cost of that project. Withdrawals must be certified by an engineer, an architect and a chartered accountant in proportion to project progress. The intent is to stop the diversion of buyer funds to other projects.
4. Right to Timely Possession, Interest and Refund
If a promoter fails to hand over possession by the date stated in the agreement for sale, Section 18 gives the buyer a choice: withdraw from the project and receive a full refund with interest and compensation, or stay in the project and receive interest for every month of delay until possession is handed over. The interest rate is set by the state rules and is linked to the State Bank of India highest marginal cost of lending rate plus a margin.
Promoters are also bound to rectify structural defects reported within five years of possession, at no extra cost, within thirty days of notice, under Section 14(3). Buyers should also remember that a promoter cannot make major changes to the sanctioned plans or specifications without the consent of at least two-thirds of the allottees (Section 14).
5. Right to Complain and Seek Redress
Buyers can file a complaint with the Karnataka Real Estate Regulatory Authority under Section 31 against a promoter, and the matter may be decided by the Authority or by its adjudicating officer for compensation. Appeals go to the Real Estate Appellate Tribunal. Buyers should keep all payment receipts, the agreement for sale, allotment letter, advertisements and correspondence, because these documents form the core of any complaint.
✅ Key Takeaways
🔗 Official Portal: rera.karnataka.gov.in
📅 Published: 22 October 2026 | This blog is a public awareness initiative. Verify all information with official sources before making financial decisions.
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