RERA Note: Commission Is Not Regulated
RERA does not set or regulate commission rates. All rates in this guide reflect market practice, not statutory requirements. What RERA does require: commission must only be earned for facilitation of RERA-compliant transactions; commission cannot be collected without issuing a receipt (Section 10(c)); and commission arrangements must not constitute an unfair trade practice.
Standard Commission Rates — Primary Market 2026
Segment / Property Type
Typical Rate (BSP)
Example on ₹1 crore property
Affordable residential (below ₹40L)
1.5% – 2.5%
N/A — deal value below ₹1Cr
Mid-segment residential (₹40L – ₹1.5Cr)
2% – 3.5%
₹2L – ₹3.5L per deal
Premium residential (₹1.5Cr – ₹5Cr)
2.5% – 4%
₹3.75L – ₹6L (on ₹1.5Cr)
Luxury / ultra-luxury (above ₹5Cr)
2% – 3% + incentives
Negotiated case by case
Plotted development
2% – 4% of plot value
₹2L – ₹4L per crore of plot value
Commercial office sale
2% – 5%
₹2L – ₹5L per crore
Commercial lease (tenant side)
2–3% of annual rent or 2 months rent
Market-specific
Retail / shop sale
2% – 4% of BSP
₹2L – ₹4L per crore
Industrial plot / shed sale
1% – 3% of value
₹1L – ₹3L per crore
Residential rental
1–2 months rent (one-time)
₹20,000 – ₹40,000 on ₹20K/mo rent
Channel Partner Agreements — How the Money Is Structured
In the primary market, commission is governed by a Channel Partner Agreement (CPA) between the developer and the agent. The structure of this agreement determines when and how you get paid — and what happens if a buyer cancels.
Booking-Triggered
🟢 Best for agent — lowest risk, fastest payment. Negotiate for this.
Commission released when buyer pays the booking amount and booking form is submitted.
ATS-Triggered (Standard)
🟡 Standard market practice. Small delay but generally secure.
Commission paid when the Agreement to Sell is executed and registered — typically 30–60 days after booking.
Construction-Linked Tranches
🟡 Works for cash flow but requires tracking each payment. Total commission spread over 12–36 months.
Commission paid proportionally as the buyer makes construction-linked installment payments.
On Full Payment / Registration
🔴 Highest risk — buyer default, project delay, or cancellation = lost commission despite completed work.
Commission only after the buyer pays 100% and sale deed is registered.
On Developer's Receipt
🟡 Variable — can work if the developer has strong collections. Include a cap on delay.
Commission is a percentage of what the developer actually receives. Buyer payment delays = your commission delays.
GST on Real Estate Commission
Key GST Facts
GST Rate:
18% on commission income
Mandatory registration:
Annual commission > ₹20 lakh
Voluntary registration:
Recommended even below threshold — enables ITC
Filing:
GSTR-1 + GSTR-3B monthly or quarterly
TDS by developer:
10% under Section 194H — offset in ITR
GST invoice:
Issue for every commission payment received
Commission Invoice Example
Property value: ₹85 lakh
Commission rate: 2.5%
Base commission: ₹2,12,500
GST @18%: ₹38,250
Invoice total to developer: ₹2,50,750
TDS @10% (if deducted): ₹21,250
Net received: ₹2,29,500
TDS offset in annual ITR filing
Why Register for GST Even Below ₹20 Lakh
As a GST-registered agent, you can claim Input Tax Credit on business expenses — office rent, vehicle, software subscriptions, professional services. For agents spending ₹3–5 lakh/year on business expenses, the ITC alone is worth ₹54,000–90,000. Registration also signals professionalism to developers and corporate clients who require GST invoices for their own ITC claims.
5 Ways Agents Lose Commission — and How to Prevent Each
Problem 1: Verbal commission rate — written CPA says different
What Happens
The CPA governs. Verbal promises from the developer's sales manager are unenforceable. If the CPA says 2% and the SM promised 3%, you get 2%.
Prevention
Get commission rate in writing before marketing. Review the CPA before signing, not after. The commission clause is the most important clause.
Problem 2: Client not registered in writing
What Happens
If you introduce a buyer verbally and another agent registers the same buyer in writing first, the written registration wins in any dispute.
Prevention
Always email the developer: "Registering [client name] for [project name] — unit [X] — date [Y]. Please confirm." This email is your registration record.
Problem 3: CPA clawback on buyer cancellation
What Happens
Most CPAs have clawback clauses — if your buyer cancels after you've been paid, you may have to return the commission. Check the clawback period and conditions.
Prevention
Qualify buyers thoroughly before registration. Understand their financial position, loan status, and commitment level. A booking that cancels costs you twice — the commission returned plus the time wasted.
Problem 4: Late-trigger CPA with buyer default
What Happens
CPA says commission on ATS registration. Buyer pays booking, then defaults before ATS. Commission trigger not met — you get nothing.
Prevention
Negotiate for booking-triggered commission wherever possible. At minimum, negotiate a partial payment at booking and balance at ATS.
Problem 5: Commission not paid for months with no documentation
What Happens
Developer acknowledges verbally but keeps delaying payment. Without a written timeline, you have limited leverage.
Prevention
CPA must specify: commission payable within X days of trigger event. If not paid, interest applies. Include this in negotiation. Send written payment reminders — creating a paper trail.
Income Potential — What Professional Agents Earn
Activity Level
Avg Deal
Deals/Year
Annual Gross
Part-time / early stage
₹40L
4–8 deals
₹4L – ₹10L
Active agent (mid-segment)
₹80L
12–20 deals
₹20L – ₹40L
Established specialist
₹1.5Cr
15–25 deals
₹45L – ₹1.25Cr
Premium market focus
₹4Cr+
8–15 deals
₹80L – ₹2Cr+
Commercial specialist
₹5Cr+
6–12 deals
₹60L – ₹3Cr+ (higher rates)
The Professional Multiplier
Agents with RERA registration, professional credentials, and strong market knowledge consistently earn more per deal because: (1) institutional developers give priority and sometimes higher commission rates to professional agents; (2) buyers who trust you refer other buyers; (3) you can work on premium transactions that require genuine expertise; (4) disputes and chargebacks reduce significantly.
Build a High-Income Professional Practice
CREP™ covers Channel Partner Agreements, commission structures, GST compliance, client management, and the professional framework that separates high-earning agents from the average.
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