East Bengaluru buyer answers

Should a real estate consultant disclose if a developer is paying them?

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

Direct answer: Yes. A consultant who may be paid by a developer when you book should say so plainly, before the first site visit and for each project they show you. The RERA Act has no specific commission-disclosure rule for agents, but it bars misleading claims about services, and you can't weigh advice without knowing who pays.

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.

We'll be upfront about our own position first, because it would be odd not to on this page. acre&key is an authorised sales partner for some projects in East Bengaluru. On those projects the developer may pay us when you book through us. Our advice to you is free. Everything below applies to us as much as to anyone else.

Why does disclosure matter more than the fee itself?

A developer paying a consultant isn't wrong in itself. It's the normal way many new-launch sales work in Bangalore, and it's why most buyers never see an invoice from their consultant. The problem starts when you don't know about it.

Picture two consultants showing you the same three Sarjapur Road projects. One says, "Two of these pay me if you book, the third doesn't, and here's why I still think the third fits you best." The other says, "I'm completely free and neutral." The first one has given you something to work with. The second has asked you to trust them blind.

Payment shapes behaviour in small ways: which project gets shown first, how hard the follow-up calls come, which flaws get a quick mention and which get a long one. You can correct for that, but only if you know where the money comes from.

What the RERA Act actually says (and doesn't)

Here's the honest version, without stretching the law.

• Section 9 requires a real estate agent to register with the state authority before facilitating the sale or purchase of a unit in a registered project. Section 9(5) requires the agent to quote their registration number in every sale they facilitate.
• Section 10(c) bars agents from unfair trade practices, including statements that falsely represent the standard of their services, claim an approval or affiliation they don't have, or make a false or misleading representation about their services.
• Section 10(d) requires agents to help you get the information and documents you're entitled to at the time of booking.
• Section 2(zm) defines a real estate agent to include anyone who introduces prospective buyers and sellers and receives remuneration, whether as commission or otherwise.

What you won't find is a clause saying "agents must tell buyers the commission percentage." So disclosure of who pays is good practice and a fair demand from you, not a specific statutory form. That said, a consultant who calls themselves "buyer-only" while collecting developer payouts on the same deal is moving into misleading-representation territory, which section 10(c) does cover. If you think that's happened, the complaint route is through the Karnataka RERA portal. This isn't legal advice on your situation.

What does good disclosure look like?

You don't need a legal document. You need a few clear sentences, ideally in writing. Compare these:

A good disclosure covers three things: whether a developer pays them on this project, whether you pay anything, and whether anything else is in play (launch incentives, contests, tie-ups with a lender). It doesn't need the exact rupee figure. Payout terms are private contracts and many consultants aren't allowed to share them. What you need is the direction of the money.

When should a real estate consultant disclose?

Timing matters as much as content.

1. First call, in general terms. "We're paid by developers on partnered projects" should come up before you've shared your budget in detail.
2. On the shortlist, project by project. Every option on the list should carry a note: partnered or not.
3. Before any token or EOI. If a consultant is about to collect your cheque for a developer, you should already know their stake in it.
4. Whenever it changes. New tie-ups happen mid-search, especially around launches. A good consultant updates you.

If disclosure only comes after you've booked, it wasn't disclosure. It was a confession.

How do you ask without it getting awkward?

Most decent consultants are relieved when you ask, because it saves them the speech. Try:

• "Just so I understand how you work, who pays you if I buy one of these?"
• "Which of these projects are you a channel partner or sales partner for?"
• "Would you show me something you don't earn on if it suited me better?"
• "Can you put that in a WhatsApp or email so I have it?"

If you get irritation, vagueness or a lecture about trust, that tells you more than the answer would have.

What doesn’t disclosure fix?

Knowing that a developer pays your consultant is the start, not the finish. It doesn't tell you whether the project is sound, whether the price is fair, or whether the agreement is balanced. You still need:

• the project's own page on the Karnataka RERA portal, with registration number, promoter and completion details;
• the consultant's agent registration, checked yourself (see how to verify RERA registration);
• a written cost sheet with every add-on;
• your own lawyer for the title and agreement.

Disclosure lets you weigh the advice. It doesn't replace checking the facts behind it.

How we handle it at acre&key

We tell you on the first call that we're an authorised sales partner for some projects and may be paid by the developer on those. We mark partnered projects on the shortlist. You don't pay us for advice. If you want something outside our partnered list compared, ask, and we'll do it, or tell you honestly that we don't cover it well and you'd be better served elsewhere.

We'd rather you know where we stand and decide with that in mind than find out later and wonder what else we didn't mention.

What does being an authorised sales partner mean?

The builder and the partner sign an agreement. The partner gets project details, price lists and inventory, and is paid when a buyer they bring books or registers. The partner may be listed with the builder's sales team and, under section 4(2)(j) of the RERA Act, the promoter has to give the names of its agents when registering the project.

It doesn't mean the partner owns or controls the project, or that it can change the builder's terms. A partner usually can't promise you a possession date, a specification or a price the builder hasn't put in writing. If a partner tells you something the agreement doesn't say, ask the builder to confirm it in writing before you rely on it.

What does fair advice from a sales partner look like?

• They tell you, unprompted, which projects pay them.
• They'll show you options that don't pay them, if those fit better.
• They point out weaknesses in partner projects too.
• They want you to have your own lawyer.
• They don't pressure you on timing.
• They're happy to put the disclosure in writing.

What should a written disclosure say?

You might ask the firm to confirm something like this by email:

"For the projects in your shortlist, please confirm which ones pay you if I book, and whether you receive any payment from a bank or lender if I take a loan through you."

A good firm will reply plainly. If the answer is vague or never comes, that's your answer.

When is the conflict too much?

If every option is a partner project, the firm avoids weaknesses, and it pushes urgency, consider a different firm or a buyer-paid adviser.

Your next steps before trusting a shortlist

1. Ask your consultant, in writing, who pays them on each project they've suggested.
2. Note which options are partnered and which aren't. If every single one is partnered, ask why.
3. Check their agent registration on rera.karnataka.gov.in.
4. Ask for at least one option they won't earn on, if one genuinely fits your brief.
5. Keep the disclosure message with your booking papers.
6. Read how property consultants in Bangalore get paid for the wider picture of payment models.

Frequently asked questions

Is it illegal for a consultant not to tell me a developer pays them?

The RERA Act doesn't contain a specific commission-disclosure clause for agents. It does prohibit misleading representations about services and false claims of affiliation under section 10(c). Claiming to take no developer money while taking it on the same deal can cross that line. Get specific advice from a lawyer if you think it has.

Should the consultant tell me how much the developer pays them?

You can ask, but don't expect it. Payout terms are usually private and vary by project. The direction of payment (developer, you, both, nobody) is the part you're entitled to expect.

Does a developer paying the consultant mean I'll pay more for the flat?

Not necessarily. Pricing depends on the developer's own policy. Compare the written cost sheet you get through the consultant with one you request directly. If they differ, ask why in writing.

What if a consultant is paid by both me and the developer?

Then you should know about both before you agree to any fee. Paying an advisory fee while the same person collects a developer payout on the same unit is something you'd want spelled out in your agreement with them, or avoided.

Can a developer-paid consultant still give good advice?

Yes, if they're open about it and willing to tell you when a partnered project doesn't suit you. Judge them on whether they ever say no, not on whether they're paid.

Is an authorised sales partner the same as a channel partner?

Broadly, yes. Different builders use different terms.

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. National Consumer Helpline, Department of Consumer Affairs. https://consumerhelpline.gov.in, accessed 15 Oct 2026.