Understanding RERA in Karnataka: A 2025 Guide for Buyers, Sellers, and Investors

The Real Estate (Regulation and Development) Act (RERA), introduced in 2017, transformed India’s property market. Karnataka adopted it quickly through K-RERA, creating a transparent and regulated environment for buyers, sellers, builders, and property dealers in Bangalore.

In 2025, RERA remains one of the most important frameworks for anyone planning to buy, invest, or sell property in Bangalore. Understanding it helps prevent fraud, delays, and legal complications.
This guide covers RERA rules in Karnataka, 2025 updates, and how Owne ensures every property transaction is safe and compliant.

What Is RERA in Karnataka?

RERA is a central law designed to bring transparency and accountability to the real estate sector.
Karnataka adopted it through K-RERA, headquartered in Bangalore.

It applies to residential and commercial projects above certain thresholds and protects buyers through mandatory disclosures, regulated payments, and strict timelines.

Key Provisions of RERA in Karnataka

Mandatory Registration

Builders must register projects above 500 sq. m. or more than eight apartments.
No advertising or selling is permitted without registration.

Escrow Requirement

Builders must place 70% of buyer funds in an escrow account to prevent diversion of money to other projects.

Defined Possession Timeline

Builders must clearly declare possession dates.
If delayed, the buyer receives compensation linked to SBI MCLR.

Carpet Area Standardization

Buyers pay only for carpet area (usable area).
Super built-up manipulation is restricted.

Advance Payment Limit

Builders cannot collect more than 10% of the property value before a registered Sale Agreement.

Defect Liability

Builders must fix structural defects for up to 5 years after handover.

RERA-Registered Agents

Property agents must register with RERA to operate legally.

Dispute Resolution

Buyers and sellers can file complaints with K-RERA for quick adjudication.

Penalties for Non-Compliance

• Selling unregistered projects → Fine up to 10% of project cost
• Providing false information → Up to 3 years imprisonment
• Agents without RERA registration → Daily penalties

Buyers should always verify a project’s RERA number before making payments.

RERA Updates in Karnataka (2025)

• Online transparency: View approvals, sanctions, and litigation status on the K-RERA portal
• Digital complaint filing for faster resolution
• Stricter scrutiny on NRI-marketed projects
• Integration with BBMP/BDA for automatic cross-verification

How Buyers Benefit from RERA

• Assured possession timelines
• Full disclosure of plans, approvals, and specifications
• Payments linked to real construction progress
• Compensation for delays
• Legal protection during the entire buying process

RERA dramatically reduces the risk of stalled or fraudulent projects.

How Sellers Benefit from RERA

RERA improves trust and credibility in the market, helping sellers:

• Attract more serious buyers
• Achieve better valuations
• Sell faster, especially in RERA-compliant projects

Properties in RERA-approved projects are preferred by both buyers and investors.

How Owne Ensures RERA Compliance

Owne integrates RERA-aligned safeguards into every transaction:

• Verification of RERA registration before listing
• Validation of OC/CC, sanction plans, and approvals
• Registered tri-party agreements for buyer, seller, and investor
• Escrow-backed structure aligned with RERA principles

Owne strengthens the security and transparency that RERA already provides.

Case Study: Buyer in Bangalore

Rahul booked a 2BHK in 2016 (pre-RERA). The project was delayed by four years, and he received no compensation.

In 2025, Rahul booked a RERA-approved home through Owne:

• RERA ensured timeline accountability
• Escrow protected his payments
• Registered tri-party agreement offered complete legal security

Rahul avoided the delays and uncertainty he faced earlier.

Frequently Asked Questions

1. Is RERA mandatory for all properties in Karnataka?
RERA applies to projects above 500 sq. m. or more than eight units. Small standalone homes may be exempt.

2. How do I check if a project is RERA-approved?
Visit rera.karnataka.gov.in and search using the project name or RERA number.

3. Does RERA apply to resale flats?
RERA mainly governs builders and new projects, but selling a RERA-approved flat increases buyer trust.

4. Do NRIs get protection under RERA?
Yes. NRIs receive the same rights and protections as resident buyers.

5. How does Owne ensure compliance?
Owne lists only verified, RERA-compliant properties and uses registered agreements with escrow backing.

Conclusion

RERA has made Karnataka’s property market significantly safer and more transparent. By enforcing registration, escrow funding, standardized disclosures, and strict penalties, it protects buyers and brings order to real estate development.

For sellers and investors, RERA improves credibility, speeds up resale, and attracts qualified buyers.

Owne builds further on this protection by offering:

• Only RERA-compliant listings
• Escrow-backed, registered agreements
• Complete legal due diligence

Whether you want to buy, sell, or invest in Bangalore, Owne offers a transparent and secure pathway backed by RERA compliance.