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Compliance ⚠️ Penalties Guide · ⏱ 10 min read · Updated September 2026

RERA Penalties
5 Common Agent Violations & How to Avoid Them

RERA enforcement against agents is increasing across India. Here are the five violations agents are most commonly penalised for — with the exact amounts, the RERA sections that apply, and what to do instead.

Quick Answer

The five most common RERA violations agents are penalised for are: operating without registration (₹10,000/day, Section 9), marketing an unregistered project (₹10,000/day, Section 10(a)), misrepresentation or unfair trade practice (up to 5% of property cost, Section 10(c)), failing to maintain required records (Section 10(b)/65), and not displaying the RERA registration number on transaction documents (₹10,000/day, Section 9(3)). All are avoidable with basic compliance discipline.

RERA Penalty Reference — Agents
Violation
RERA Section
Penalty
Operating without RERA registration
Section 9(1) + Section 62
₹10,000/day — no upper cap
Marketing unregistered project
Section 10(a) + Section 62
₹10,000/day
Unfair trade practice / misrepresentation
Section 10(c) + Section 62
Up to 5% of apartment cost
Failure to maintain records
Section 10(b) + Section 65
Penalty + possible cancellation
Facilitating non-RERA-compliant transaction
Section 10(a)/(c) + Section 62
₹10,000/day + compensation
1
Operating Without RERA Registration
Section 9(1) read with Section 62
₹10,000 per day of default — no upper cap specified in the Act

The most common and most easily avoided violation. Any person facilitating a property transaction for any compensation must be registered with their state RERA authority. No exceptions — not for experience, association membership, transaction size, or part-time status.

How It Typically Happens
1.A broker with 15 years of experience who has not formally registered with HRERA facilitates a ₹1.2 crore Gurugram flat booking.
2.A complaint is filed with HRERA.
3.HRERA issues show-cause notice — agent has been operating for 60 days without registration.
4.Penalty calculated: ₹10,000 × 60 days = ₹6,00,000.
How to Avoid It
Register immediately. rera.punjab.gov.in, hrera.org.in, maharera.maharashtra.gov.in — or your applicable state portal. Fee is ₹10,000 for individuals in most states. Set a renewal reminder 60 days before expiry.
2
Marketing a Project Without RERA Registration
Section 10(a) read with Section 62
₹10,000 per day of default

Section 10(a) prohibits agents from facilitating sale or purchase of any property in a project that is required to be registered under RERA but hasn't been. This means the agent's own registration is not enough — the project they are marketing must also be RERA registered.

How It Typically Happens
1.An agent markets a 50-unit apartment project in Pune that has applied for MahaRERA registration but not yet received it.
2.The developer says "it will come any day now."
3.A buyer books and later discovers the project was never registered.
4.Both developer and agent face MahaRERA action — agent for marketing an unregistered project under Section 10(a).
How to Avoid It
Before marketing any project: go to the state RERA portal, search for the project by name or developer, confirm the registration number is valid and not cancelled. Screenshot and date-stamp the verification. Never market a project the developer says is "applied for" — only "registered."
3
Misrepresentation or Unfair Trade Practice
Section 10(c) read with Section 62
Up to 5% of the property cost as compensation; additional penalty possible

Section 10(c) is the broadest and most consequential provision for agent liability. It covers: any false or misleading statement about the property, failure to issue receipts, misrepresenting carpet area as SBA, not disclosing known defects or legal issues, and making price predictions as guarantees.

How It Typically Happens
1.An agent tells a buyer "this project will definitely give 15% returns in 2 years — I guarantee it."
2.The buyer books based on this statement.
3.Two years later, prices have fallen.
4.Buyer files RERA complaint citing the agent's verbal guarantee.
5.RERA authority finds the statement was a misrepresentation — agent liable for compensation.
How to Avoid It
Never state price predictions as guarantees. Present historical data clearly labelled as past performance. Always disclose carpet area (not SBA). Issue receipts for every payment. Disclose all known defects and issues in writing before booking.
4
Failing to Maintain Books of Account and Records
Section 10(b) read with Section 65
RERA penalty; may affect registration renewal; weakens any dispute defence

Every RERA-registered agent must maintain prescribed books of accounts, records, and documents. These are subject to inspection by the RERA authority at any time under Section 26. Many agents neglect this, assuming it only matters if they get into a dispute — but poor records are themselves a violation.

How It Typically Happens
1.RERA authority receives a buyer complaint against an agent.
2.Authority issues notice under Section 26 to produce records of all transactions.
3.Agent has no organised records — just some WhatsApp screenshots.
4.Cannot prove what disclosures were made to the complainant.
5.Complaint decided against agent due to inability to produce evidence.
How to Avoid It
Maintain: (1) client register with all buyer details and dates; (2) copy of every CPA signed; (3) copy of every ATS and booking form; (4) receipt copies for every payment; (5) RERA portal verification screenshots with dates. A Google Drive folder per client, organised by date, is fully sufficient and takes 5 minutes per transaction.
5
Not Displaying RERA Registration Number
Section 9(3) read with Section 62
₹10,000/day; also triggers scrutiny of all transactions

Once registered, your RERA registration number must appear on all documents relating to any transaction you facilitate — booking forms, correspondence, marketing materials, social media posts about specific projects, and advertisements. Many agents skip this, not realising it is a standalone compliance obligation.

How It Typically Happens
1.A registered RERA agent markets a project on Instagram with no RERA number shown.
2.A buyer screenshots the post as evidence in a later dispute.
3.RERA authority notes the agent did not display their registration number — a Section 9(3) violation.
4.This compounds the main dispute and adds additional penalty exposure.
How to Avoid It
Put your RERA registration number in your email signature, on your visiting card, on every WhatsApp group post about a specific project, and on every physical or digital marketing material. It should become as automatic as your phone number.

Frequently Asked Questions

What is the penalty for operating as a RERA agent without registration?
₹10,000 per day of default under Section 9(1) read with Section 62, with no upper cap specified in the Act. Penalties accumulate daily until registration is obtained, so even a short unregistered period can add up quickly.
Can an agent be penalised even if their own registration is valid?
Yes. Under Section 10(a), an agent must also confirm the specific project being marketed is itself RERA-registered. Marketing an unregistered project is a separate violation from the agent's own registration status — both must be in order.
Is verbally promising returns to a buyer a RERA violation?
It can be. Making price predictions or return guarantees can be treated as misrepresentation or unfair trade practice under Section 10(c), which can carry compensation liability of up to 5% of the property cost. Present historical data only as past performance, never as a guarantee.
What records must a RERA-registered agent maintain?
Prescribed books of accounts, a client register with transaction details and dates, copies of every signed agreement and booking form, payment receipts, and dated portal-verification screenshots. These are subject to inspection under Section 26, and poor record-keeping is itself a compliance weakness even before any dispute arises.
Where must an agent display their RERA registration number?
On all documents and communications relating to a transaction — booking forms, correspondence, marketing materials, social media posts about specific projects, and advertisements. Failing to display it is a standalone Section 9(3) violation, separate from any underlying transaction dispute.
Do RERA agent penalties vary by state?
The core penalty framework (Sections 9, 10, 62 and 65) is set by the central RERA Act, 2016, and applies uniformly. However, enforcement intensity, complaint-processing speed, and how actively a given state authority pursues violations can vary — HRERA and MahaRERA, for example, have both shown active recent enforcement.
Change Log
Sep 21, 2026 — Added Quick Answer summary and 6-question FAQ section with synced schema.
Aug 11, 2026 — Initial guide published.
Know the Rules. Avoid the Penalties.

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Related Reading
RERA Penalties — Complete Guide → RERA Sections 9 & 10 — Agent Obligations → RERA Agent Registration — All States → Due Diligence Checklist for Agents →