Overview of RERA Registration for Agents
A "Real Estate Agent" is an individual who works on the behalf of someone else in the matters related to real-estate transaction, and is profited with expenses for the services expanded. Property dealers, middlemen, brokers can be considered as real estate agents. Their primary job of real estate agents is to crack a deal on the sale of plot, land, building, and apartments. Under the RERA Act appropriate in India, all realtors must get a RERA registration for Agents.
According to RERA act 2016, RERA registered agents has the authority to deal the real estate sector. They legally can indulge in the process of selling and purchasing of real estate properties which are registered under section 3 of the act.
The Section 2(zm) of the act defines “Real Estate Agent“–
“It means any person who negotiates or acts on behalf of one person in a transaction of transfer of his plot, apartment or building, as the case may be, in a real estate project, by way of sale, with another person or transfer of plot, apartment or building, as the case may be, of any other person to him and receives remuneration or fees or any other charges for his services whether as commission or otherwise and includes a person who introduces, through any medium, prospective buyers and sellers to each other for negotiation for sale or purchase of plot, apartment or building, as the case may be and includes property dealers, brokers, middlemen by whatever name called.”
Section 9 of the Act has made registration of the agent a compulsory thing to do.
(1) No real estate agent can facilitate the sale/purchase of properties in real estate projects registered u/s 3 of the Act without obtaining registration under section 9.
(2) Every real estate agent shall make an application to the Authority for registration in such form, manner within such time and accompanied by such fee and documents as may be prescribed in respective State’ s rules. The Authority shall grant a single registration to the real estate agent for the entire State or Union territory.”
The RERA Act has given State Governments the authority to draft rules and guidelines relating to RERA registration for real estate agents. Any undertaking where the territory of development surpasses 500 square meters or if the quantity of condos created is more than eight, RERA registration is must for such projects and only the agent having RERA registration can involve in the selling of project. Subsequently, just an Agent having RERA Registration is qualified for dealing in properties having RERA registration.
Impact of RERA on Real Estate Sector
Origination of RERA has given birth to State Real Estate Regulatory Authority and the Real Estate Appellate Tribunal, the purpose of these two is to determine the debates relating to acquisition of the property. There will be no other customer gatherings and common courts for the oppressed party to settle down such issues. RERA creates the groundwork for resolving disputes on fast-track basis.
Key Impact of RERA on Real Estate Industry
- Increase in Project Cost and Cost of Capital
- Tight Liquidity
RERA Registration for Agents
Benefits of RERA Registration for Agents
A real estate venture that must be registered under the RERA Act can be managed distinctly by a real estate agent having RERA registration. RERA registration is required to publicize, market, book, sell or offer available to be purchased, or welcome people to buy in any plot, condo or building.
Plots and apartments that are exempted from the requirements of RERA registration:
- Land area under development process should not exceed 500 square metres.
- Number of plots to be constructed under the project should not exceed eight.
- Any kind of renovation activity or repair which is conducted without any marketing, advertising, selling of any apartment, building or plot.
Documents agent need at the time of registration
- Name of the agent as mentioned in the PAN card
- Authentic address of the agent
- Contact Details
- A passport size photograph of the agent
- Information related to his enterprise such as name, registered address
- Specific details stating the type of organization such as Partnership firm, Proprietorship firm, Private Limited, Public Limited or LLP with a registration number
Functions of Real Estate Agent
- Not encourage the deal or acquisition of any plot, loft or building, in a real estate project or some portion of it, being sold by the promoter in any planned area, which Authority does not cover under the registration,
- Keep up and safeguard such books of record, records, and documents as might be recommended,
- Not include himself in any out of line trade practices
- Encourage the ownership of all the data and records, as the allottee, is qualified for, at the time of booking of any plot, loft or building,
- Discharge such other functions as may be prescribed
Registration Procedure of RERA Agent Registration
For RERA registration, an application form will be recorded alongside expense and important documents.
- Once you filed the application, regulator will issue a registration number which is mentioned in the documents that are concerned to the sale of the property.
- Books of accounts, records and other exchange related documents are required to be kept up on a quarterly premise.
- You need to give definite data and reports in regards to the venture you entered with the purchaser.
- While recording an application, you should know that the agent might be suspended if there should arise an occurrence of deception of facts or extortion at the time RERA registration.
RERA Registration Fees for Real Estate Agent under RERA
- Amount of ten thousand, if there should be an occurrence of a candidate being a person.
- Rupee one lakh, if there should be an occurrence of a candidate is an entity not enlisted under Companies Act 2013 or
- Rupees Twenty - Five lakhs, if there should be an occurrence of a candidate, is a body corporate, registered under the Companies Act, 2013, will be paid as fees to the authority for getting a registration.
- The charge will be paid to the authority through NEFT or RTGS System at the time of filling of the online application or through a compensation request or demand draft payable at the leader of the Authority and drawn on any planned bank alongside an application, at the time of presenting such application.
Validity for Registration
- RERA registration for agents remain valid for a time being of one year or more depending on the amount of fee paid. Agent can renew their registration at the end of its period.
- In case of any misrepresentation, fraud or breach authority posses the right to revoke the agent’s registration at any time.
Compliances every Real Estate Agent should be aware of
- To make sure that the real estate property is registered with the respective state RERA
- To make sure all the papers or documents or data required in the arrangement has been given to allottee
- Try not to give any bogus guarantee or false commitment
- Try not to include in any sort of misbehaviour
Frequently Asked Questions
Name of the agent as mentioned in the PAN card
Authentic address of the agent
A passport size photograph of the agent
Information related to his enterprise such as name, registered address
Specific details stating the type of organization such as Partnership firm, Proprietorship
firm, Private Limited, Public Limited or LLP with a registration number
Though the Act itself was passed and notified in Gazette in March 2016, the implementation will be done in a phased manner. Each state has to further adopt the Act and form the RERA for implementation. States can also notify any existing agency as the regulatory authority. Specific provisions may take a little longer to implement but certain compliances on the part of Builders / Developers may become mandatory almost immediately.
Before encouraging the deal or acquisition of any unit part of a real estate enlisted under the Act, an Agent will acquire registration under Section 9 of RERA Act.
The developer can sell the project after obtaining the written approval of the 2/3rd of the buyers of the project. The developer to whom the sale is made will have all the rights and liabilities of the previous promoter.
In such a case, the government will appoint another appellate tribunal to hear the appeal.
As per section 3(1) of the Act, ongoing / existing projects, which have not received occupation or completion certificate, shall be covered under the Act. Builders / Developers must register such projects under RERA, within three months of implementation of the Act. Essentially almost all large projects which have not obtained completion certificate will immediately come under the purview of the Act. Thereby consumers of under construction projects can seek protection under the Act.
Registration under RERA can be denied by RERA, in the event that it gets a protest against the engineer and is fulfilled that the Developer has not agreed to the standards under the Act, or has damaged the terms and states of endorsement, or is associated with out of line practices to sell, market or promote his ventures.