RERA penalties for real estate brokers in India (2026); from hefty fines to jail terms
The Real Estate (Regulation and Development) Act, 2016 (RERA) is one of the best things introduced to protect homebuyers as well as developers. It offers the much-needed transparency and accountability to India’s real estate sector. But the law also takes care of real estate brokers or agents, apart from developers and homebuyers.
RERA’s Chapter VIII
RERA’s Chapter VIII (Offences, Penalties and Adjudication) says that real estate agents are equally accountable as developers and buyers. The brokers are crucial to the industry and play an important role in property transactions. RERA has some strict provisions for real estate brokers in India. These are some strict penalties which range from hefty fines to imprisonment, depending on the issue.
A look at RERA penalties for real estate brokers in India (2026).
Mandatory registration of brokers under Sections 9 and 10
It is mandatory for every real estate agent to register with the respective state RERA authority under Sections 9 and 10 of the RERA Act. Unless the brokers are not registered, they cannot facilitate the sale or purchase of any registered project. They are also required to maintain proper records, avoid unfair practices, and offer only correct information to buyers.
If a broker fails to comply, he can be fined and other penalties would be imposed.
Penalty for Non-Registration under Section 62
One of the most common violations is operating without RERA registration. As per official provisions:
Brokers can be fined ₹10,000 per day during the period of default
The penalty may extend up to 5% of the cost of the property
Penalty for Non-Compliance with Authority Orders (Section 65)
A daily penalty may be imposed
The total fine can go up to 5% of the property cost linked to the transaction
Penalty for Violating Appellate Tribunal Orders (Section 66)
Imprisonment of up to 1 year, or
Fine up to 10% of the estimated property cost, or both
Understanding RERA’s Chapter VIII
The law allows authorities to impose penalties and imprisonment. It can also revoke registration, in case of proven violations. In recent years, the updated “RERA 2.0” emphasises transparency and faster grievance redressal.
This regulatory framework offers an added layer of security to developers as well as buyers, making the process more transparent.
Sources:
Real Estate (Regulation and Development) Act, 2016 – Sections 9, 10, 62, 65, 66
India Filings (legal compliance summary)
Lawbhoomi (RERA penalties overview)
Lawfinity & legal summaries of RERA provisions
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