RERA and Resale Flats in Bangalore: What Applies and What Does Not
Many buyers of a resale flat in Bangalore assume that the Real Estate (Regulation and Development) Act, 2016 (RERA) is only for bookings made with a builder. The Act is written around the project and its promoter, so parts of it continue after the first sale. This guide sets out which RERA protections reach a second buyer, which do not, and how to use the ones that remain.
RERA Regulates the Project, Not the Private Sale
A resale is a transfer between two individuals under the Transfer of Property Act and the Registration Act. K-RERA does not register that sale, approve its price or examine the seller's title. A dispute with the seller over the advance, the title or the handover goes to a civil court.
The promoter's duties are a different matter. They attach to the project, and several of them run for years after the first owner receives the keys. A second buyer who knows the project's registration number and handover date is able to rely on those duties.
A Second Buyer Is an Allottee
Section 2(d) of the Act defines an allottee as the person to whom a plot, apartment or building is allotted, sold or transferred by the promoter. The definition goes on to include a person who later acquires the allotment through sale, transfer or otherwise. A tenant is left out.
The result is that a resale buyer in a registered project holds the same standing before K-RERA as the first owner did. Under section 31, any aggrieved person may file a complaint against a promoter, an allottee or a real estate agent. A second owner of a flat in a registered project therefore has a direct route to the Authority on matters that concern the promoter.
Projects Where RERA Applies
The first check in any resale is whether the building was ever a registered project. Section 3 leaves several kinds of development outside registration.
- Projects on land of 500 sq m or less, or with eight apartments or fewer
- Projects that held a completion certificate before section 3 came into force on 1 May 2017
- Renovation, repair or redevelopment that involves no marketing or fresh allotment
A flat in a building completed in 2012 was never under the Act, and its buyer relies on ordinary property checks alone. A flat in a project registered in 2019 and handed over in 2023 is fully within it. A search of the project name on the K-RERA portal settles the question in a few minutes.
Defect Liability May Still Be Running
Section 14(3) makes the promoter responsible for structural defects and for defects in workmanship, quality or services for five years from the date of handing over possession. Once a defect is reported, the promoter has 30 days to rectify it at no charge. If the repair is not done, the allottee is entitled to compensation.
The five years belong to the flat and the building, so the unused part passes to the next owner. A flat handed over in March 2023 carries this cover until March 2028. A buyer in 2026 therefore receives about a year and a half of it.
Two papers make the cover usable. The first is the possession letter or handover record that fixes the start date. The second is a written list of known defects, such as seepage or cracks, with any complaints the seller or the association has already sent to the developer.
Common Areas, Association and Dues
Section 17 requires the promoter to convey the common areas to the association of allottees and to hand over the plans and documents. Section 11(4)(e) requires the promoter to enable the formation of that association. Whether both steps are complete says a good deal about the building a buyer is joining.
Section 11(4)(g) deals with money the promoter collected from allottees for outgoings such as taxes, water and electricity charges and maintenance. The promoter remains liable for any such amounts left unpaid before the handover, even after the flats are transferred. An association still pursuing these arrears, or a corpus fund that was never passed on, is a matter every owner shares.
A resale buyer should ask the association for three things in writing before paying the balance price. These are a statement of dues on the flat, the status of the common-area handover, and details of any case pending between the association and the developer.
Brokers and Advertisements
Section 9 bars a real estate agent from facilitating the sale or purchase of a flat in a registered project without registering with the Authority. Section 10 adds duties, including keeping books and records and avoiding unfair trade practices. The K-RERA portal has a search for registered agents, and the registration number should appear on the agent's papers.
Section 2(b) defines an advertisement widely, as any document or medium that offers a plot or apartment for sale. Messages and emails that describe the flat are a record of what was represented. A buyer should save the listing, the chat thread and any area statement before the deal moves forward.
Buying Before the Sale Deed Is Registered
Some resales take place while the project is still under construction. The first buyer holds only an agreement for sale, and the transfer is done by assigning that agreement with the developer's consent. The incoming buyer becomes the allottee on the developer's records.
In this case almost all of RERA applies to the new buyer. The possession date, the right to interest or a refund for delay under section 18, and the full five-year defect period all pass with the agreement. The developer usually charges a transfer fee, and the new buyer should receive a fresh confirmation of payments made and amounts still due.
What Applies at a Glance
The table sums up how far the Act reaches in the three common resale situations.
| Protection | Assigned booking, project under construction | Completed flat in a registered project | Older or exempt building |
|---|---|---|---|
| Standing as allottee | Yes | Yes | Outside the Act |
| Delay interest or refund | Yes | Usually settled by handover | Outside the Act |
| Five-year defect liability | Full period after handover | Balance of the period | Outside the Act |
| Common-area conveyance | Yes | Yes, through the association | Under other state laws |
| Registered agent rule | Yes | Yes | Outside the Act |
| Check on the seller's title | Buyer's own diligence | Buyer's own diligence | Buyer's own diligence |
The last row is the same in every column. RERA adds rights against the promoter, and the checks on the seller remain the buyer's own work in every resale.
Checks That RERA Does Not Replace
A resale stands or falls on the seller's title and on the building's approvals. The papers that carry this weight are listed below.
- The registered sale deed in the seller's name and the earlier deeds in the chain
- An encumbrance certificate covering the years since the first sale
- The occupancy certificate and the sanctioned plan of the building
- The e-khata and up-to-date property tax receipts
- A loan closure letter and release of the title deeds where the seller had a home loan
An advocate's scrutiny of these papers is the core of a resale purchase. The RERA checks run alongside it and take little time: the portal entry, the handover date, the association's position and the agent's registration. Our team can help line up both sets of checks for a flat under consideration.
