A “Real estate agent” is an individual who acts on behalf of someone else in a real estate transaction, and is profited with fees for the service extended. Real estate agents incorporate the likes of property dealers, brokers, middlemen, and so forth. Top services rendered by real estate agents incorporate the introduction as well as deal-making on leasing or sale of plot, land, building, and apartments. Under the RERA Act applicable in India, every real estate agent should obtain a RERA registration for agents.
The RERA Act has furnished State Governments with the powers to issue rules as well as regulations relating to RERA registration for an agent. Any project where the area of development surpasses 500 square meters or if the number of apartments developed is more than eight, RERA registration shall be required for the project, and the project could be sold only by an Agent having RERA registration. Subsequently, only an Agent having RERA Registration is qualified for managing in properties having RERA registration.
Benefits of RERA Registration for an agent
As per the RERA Act, a real estate project that should be registered under the RERA Act could be dealt with only by a real estate agent having RERA registration. RERA registration is requisite to advertise, market, book, sell, or offer for sale, or invite individuals to purchase in any plot, apartment, or building.
There are only the following types of plots and apartments are exempted from RERA registration for agent requirements. Those follow:-
Legal aspect of RERA registration for Real estate agent
RERA represents for Real Estate Regulatory Authority, which is an act of the Parliament of India trying to ensure home-buyers and assists in boosting investments in the real estate business. It is intended to bring clarity and responsibility that would recapture the lost faith of the individuals in the real estate business.
Through RERA registration for an agent, the Real Estate Act, 2016[1], built up it in each state for regulation of the real estate sector and also acted as an adjudicating body for quick dispute redressal. This Act came into existence on 1st May 2016, with 59 of 92 sections notified.
Importance of Real Estate Agent
Real estate agents are the backbone of the real estate market. They channelize the markets in which the money is either brought by the promoters or by the buyers. An agent is valued extremely high by the general public since they realize that the agent is the medium through which a promoter and a buyer meet.
Real estate agents are the catalysts through which a smooth sail of selling and purchasing can be done in the market. A promoter builds a project, but he neither has the skill nor the network to sell those units, and a buyer can only reach the promoter through a personal relationship or through agents.
The problem in India is that with the passage of time, the general public is losing trust in the real estate agents. Even the agents know that their image in the eyes of common man has gone from bad to worse, and now this thing has become so extreme that the young generation finds this a work of thieves and goons. However, one should always keep in mind that not all the agents are thugs, many of them do their job very honestly.
Thus, the government had to come up with an answer for the losing faith of our real estate agents. This answer is RERA. RERA with, Central Advisory Council and Real Estate Appellate Tribunal have been formed so that people can regain trust in our nation’s real estate agents and also to strictly penalize the defaulters due to which an unbalance are created in public.
Compliances for Real Estate Agent
To achieve fair practice in dealing with properties, RERA regulations have prescribed certain compliances for Real Estate agents to moderate the transactions in real estate properties. As per RERA Act, no real estate agent shall facilitate few approaches.
Those are as follows:-
As required by RERA Act, Every State RERA has prescribed its own RERA Rules, which prescribe about RERA Registration Fees, RERA Registration form, and RERA registration process. Apart from Registration, there are other compliances:
- To ensure that the property which requires RERA registration has been registered with respective State RERA.
- To ensure all the papers/information required in the deal has been given to allottee.
- Don’t provide any false promise or misleading commitment.
- Don’t involve in any kind of mal-practice
Penalties for Real Estate Agent
Failure to get RERA registration would attract a penalty of Rs. 10,000/- per day during the period of default. For another kind of violation, there are provisions for revocation of RERA registration and imprisonment. The Real Estate (Regulatory and Development) Act, 2016 provides for rules and regulations, which are as follows:
- A real-estate agent would be punished with a sum of Rs 10,000 for every day of default, which may extend up to 5% of the cost of the property, be it for non-registration or any other violation of conduct.
- The fee could cumulatively extend up to 5% of the price of the plot, apartment, or building, also in case of any further indulgence in unfair trade practices.
- An agent can get imprisonment for up to 1 year without fine, which may extend up to 10% of the estimated cost of the project.
Read our article:Comprehensive Guide on RERA Registration for Promoters
RERA Registration for agents
It is now a compulsion for an agent to get registered with RERA. Without this Registration, he will be ineligible to sell or advertise a property. Registration will be a simple process, as the agent only has to submit all the documents asked by the authority.
We will update the requirements of the authority as and when it starts to set up those norms. We will also support the agents with the time schedule as to when will be the registration starts and all as we get updates from RERA itself.
As requisite by RERA Act, every State RERA has set its own RERA Rules, which lay down about RERA registration for agent Fees, RERA Registration for agent form, and RERA registration for agent course.
We all know that somewhere down the line, the government also becomes a part of unethical behaviors of some agents by delaying their approvals. This can come as good news to the existing and budding agents as now the government has to either register or reject their application within the given amount of time, and also, it has to give a written clarification that on what grounds is the applicant is getting rejected. If the government fails to do these steps, a person automatically becomes an agent.
The validity of the RERA registration
RERA registration for agents would be valid for 5 years from the date of issue. The license could be renewed again for a period of 5 years, through submitting a renewal application 60 days prior to the expiry date.
Document Required for Registration
- A duly filled RERA agent registration form.
- Particulars are stating the type of organization (Pvt. Ltd. /Public Ltd./LLP/Partnership firm/Proprietorship Firm) with the registration number.
- The particulars of Registration including the bye-laws, memorandum of association, articles of association, etc. as the case may be.
- Name, address, contact details and photographs of the real estate agent, if it is an individual and the name, address, contact details and photograph of the partners, directors, etc. in case of other entities.
- An authentic copy of the address proof of the place of business.
- An authentic copy of Pan Card of the real estate agent.
Functions of the Real Estate Agents
- The agent must have all the records of the promoters as well as their projects. These documents should be presented to the buyers as and when required. He should not advertise or misguide the general public with the facts of the project that are false. He should understand that being an agent is a responsibility to fairly handle the hard-earned money of a common man.
- Thus, he should not try to trick a customer by giving him false information or by any method. A real estate agent must understand that a buyer very rarely knows the laws when buying a house, and it’s his duty to introduce each law to the eyes of a buyer.
- These are the summary of the role of real agent and his registration process. The government has wisely chosen these steps as it wants to create a long run of trust-building between an agent and the buyer. We will help to build a stronger relationship between the buyer and an agent by providing proper assistance and interactions.
Conclusion
Real estate agents are the heart of real estate industry. They are the mediators facilitating transactions between builder and buyer. With RERA, which will soon come into force, all brokers will have to be mandatorily registered with the concerned state-level regulatory authorities.
Real estate agents will be given a registration number by the authority, which will be valid for 5 years and will be quoted in every transaction facilitated by him. All brokers will have to compulsorily register with the concerned state-level regulatory authorities.
Read our article: RERA Complaint or Consumer forum (NCDRC): Which is better?
