1. Registration and Disclosure: Know What You Are Buying
Under Section 3, a promoter cannot advertise, market, book or sell a project that falls within the Act unless it is registered with the state authority. Broadly, projects above the area and unit thresholds fixed by the Act must be registered. Once registered, the project's details, including approvals, layout, timelines and the promoter's background, are made public on the K-RERA portal.
Your first right is therefore the right to information. You can check the registration number, the declared completion date, the sanctioned plan and the promoter's other projects before you pay anything. Advertisements must carry the RERA registration number.
2. Financial Safeguards for Your Money
The Act requires promoters to deposit a portion of the money collected from buyers (70 percent) into a separate designated account, to be used only for the cost of construction and land of that project. Withdrawals are linked to the progress of work, certified by professionals. This is meant to stop the diversion of buyer money into other ventures.
Section 13 also bars a promoter from taking more than 10 percent of the cost of an apartment as an advance or application fee unless a written agreement for sale has been executed and registered. Always insist on the registered agreement before paying a large booking amount.
3. Possession, Delay and Refund Rights
Under Section 18, if a promoter fails to hand over possession by the date in the agreement for sale, the buyer who wishes to withdraw can claim a refund of the amount paid along with interest and compensation. A buyer who prefers to stay in the project is entitled to interest for every month of delay until possession is handed over. The rate of interest is prescribed in the state rules.
Buyers are also entitled to be told about any change to the sanctioned plans, and major alterations require the consent of the allottees as set out in the Act. Area is to be sold on the basis of carpet area, which prevents inflated super built-up area charges.
4. Structural Defects and Quality
Section 14 gives buyers a defect liability period of five years from the date of possession. If a structural defect or any defect in workmanship, quality or services is brought to the promoter's notice within this period, the promoter must rectify it within 30 days at no extra charge. If the promoter fails to do so, the buyer can claim appropriate compensation.
5. Where to Complain
If your rights are violated, you can file a complaint with K-RERA or before the adjudicating officer for compensation claims, using the forms and fees prescribed under the state rules. Orders can be challenged before the Appellate Tribunal. Keep copies of your agreement, payment receipts, advertisements and correspondence, as these form the core evidence in any complaint.
✅ Key Takeaways
🔗 Official Portal: rera.karnataka.gov.in
📅 Published: October 7, 2026 | This blog is a public awareness initiative. Verify all information with official sources before making financial decisions.
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