East Bengaluru buyer answers

Fee-only advisor vs commission-based consultant: which model suits me?

By Gaurav Mongia, acre&key · Published 15 Oct 2026 · Updated 15 Oct 2026

Direct answer: A fee-only adviser is paid only by you, so they have no stake in which property you choose. A commission-based consultant is paid when a deal happens, usually by the developer on new projects, sometimes by you on resale, so there's a pull towards closing and towards partner projects.

Disclosure: acre&key’s advice is free to buyers; we are an authorised sales partner for some projects and may be paid by the developer.

Verify with your CA: This page is general information, not tax advice. GST treatment of advisory fees can change; confirm the current rules and your invoice with your own chartered accountant before you pay.

As the note above says, that makes us commission-based on partner projects.

What are the two models?

Fee-only. - You pay a fixed fee, an hourly rate, or a fee for a defined scope. - No payment from developers, sellers or banks. - The adviser earns the same whether you buy, wait or walk away.

Commission-based. - Paid when a sale happens: by the developer on new projects, by buyer and/or seller on resale. - Usually no cost to you on new projects. - The adviser earns only if a deal closes, and often only on certain projects.

Which way does each model pull?

No model is free of pull. A fee-only adviser paid a percentage of price, or paid only on success, has some of the same pulls as a commission-based one.

Which real estate advisory services model suits you?

Fee-only may suit you if: - the purchase is large or complicated; - you're looking at resale, plots or unusual property; - you want someone who'll comfortably tell you to wait; - you're buying from abroad and can't check much yourself.

Commission-based may suit you if: - you're buying a new flat in a RERA-registered project; - you're comfortable doing checks with your own lawyer; - the consultant discloses who pays them and shows you alternatives.

Making commission-based work for you

• Ask which projects pay them.
• Ask for one option that doesn't.
• Check the RERA page yourself.
• Get the builder's direct price.
• Use your own lawyer.

Making fee-only work for you

• Agree the scope in writing: what's included, what isn't.
• Prefer a fixed fee to a percentage.
• Ask whether they'll take any payment from anyone else, and get "no" in writing.
• Check they're registered on rera.karnataka.gov.in if they'll act in your purchase.

For typical fee ranges and who pays on new vs resale deals, see how much consultancy services cost in Bangalore.

Why is investment advice extra sensitive to pay?

For a home, you can judge a lot yourself: the commute, the flat, the school. For an investment, you lean more on the consultant's numbers, like expected rent, future demand and resale. Those are easy to tilt. A consultant who's paid on a project might be honestly optimistic about it without meaning to mislead you.

What are the signs pay is shaping the advice?

• Every scenario they show is the upside case.
• Rent estimates are higher than comparable flats actually let for.
• "Wait" is never offered as an option.
• Non-partner projects get dismissed without a clear reason.
• They're reluctant to put their recommendation in writing.

Which questions cut through?

1. "Who pays you if I buy this, and roughly how?"
2. "Would you recommend this if nobody paid you?"
3. "What's the bad-case return on this flat?"
4. "Which nearby flats is that rent based on?"
5. "When would you tell me not to buy at all?"

The best consultants answer these without fuss. If you get a long pause, a change of subject or "don't worry about that," note it. It doesn't prove anything on its own, but it tells you to check the numbers more carefully, and perhaps to get a second opinion from someone who isn't paid on the same project.

How do you protect yourself?

• Get the pay arrangement in writing.
• Do your own rent and cost maths.
• Compare at least one non-partner option.
• Use a CA or financial adviser for the tax and portfolio side.
• Use your own lawyer for title.

What does the law say about adviser pay?

The RERA Act doesn't regulate how much consultants earn. It does require registration for agents facilitating sales in registered projects (section 9) and bars false or misleading statements (section 10). Check registration on rera.karnataka.gov.in.

Which fee myths should you drop?

"Free means they work for me." They may care about you a great deal, but the fee comes from the seller's side. That's worth knowing.

"RERA registration means they're neutral." Registration under section 9 of the RERA Act means they're allowed to facilitate sales of registered projects. It says nothing about neutrality. Section 10 does bar them from misleading representations about their services, so someone claiming to take nothing from developers while taking developer money is on thin ice.

"Paying a consultant guarantees better advice." Not necessarily. A fee-paid advisor removes one bias, but quality still varies.

"If it's free, I've got nothing to lose." You've got time, and the risk of booking the wrong flat. Both matter more than a fee.

What to do next

1. Decide how much keeping seller money out matters on this purchase.
2. Ask any adviser which model they follow, in writing.
3. Compare a fee-only quote with the free option, weighing what each will actually check.
4. Choose, get the terms in writing, and keep your own lawyer either way.
5. See whether a buyer-side consultancy is better than a developer-paid one for the trade-offs on each side.

Frequently asked questions

Are fee-only advisers available in Bangalore?

Some advisers offer fee-based work, but it's much less common than commission-based consulting. Ask directly.

Is a fee-only adviser more expensive?

In cash, yes, compared with free developer-paid help. Whether it's worth it depends on the checks you get and whether seller money is kept out.

Can a consultant offer both models?

Some do. Ask which applies to your deal and whether they take developer money on it.

Does GST apply to an adviser's fee?

Fees for services may attract GST. Check the invoice and ask your CA.

Is commission-based advice always biased?

There's always a pull, but disclosure and your own checks keep it manageable. See should consultants disclose developer payments?.

Should a consultant tell me their exact commission?

They may not share the figure, but they should tell you whether they're paid and by whom.

References

1. Real Estate (Regulation and Development) Act, 2016, official text hosted by Karnataka RERA. https://rera.karnataka.gov.in/resources/staticpage/Real_Estate_Act.pdf, accessed 15 Oct 2026.
2. Real Estate (Regulation and Development) Act, 2016, full text PDF (PRS Legislative Research). https://prsindia.org/files/bills_acts/acts_parliament/2016/the-real-estate-%28regulation-and-development%29-act,-2016.pdf, accessed 15 Oct 2026.
3. Karnataka Real Estate Regulatory Authority, official portal (project status, agent status, complaints). https://rera.karnataka.gov.in, accessed 14 Oct 2026.
4. CGST Act, 2017, Schedule II para 5(b), CBIC tax information portal. https://taxinformation.cbic.gov.in/content/html/tax_repository/gst/acts/2017_CGST_act/active/chapter21/scheduleii_v1.00.html, accessed 15 Oct 2026.