How will RERA impact real estate agents?
Under the Real Estate (Regulation and Development) Act (RERA), real estate agents will need to register themselves, to be able to facilitate a transaction. The broker segment in India, is estimated to be a USD 4 billion industry, with an estimated 5,00,000 to 9,00,000 brokers. However, it has traditionally been unorganised and unregulated.
It will bring a lot of accountability in the industry and the ones who believe in professional and transparent business, will reap all the benefits. Now, the agents will have a much larger and responsible role to perform, as they will have to disclose all the appropriate information to the customer and even help them chose a RERA-compliant developer. .
With RERA in force, brokers cannot promise any amenities or services that are not mentioned in the documents. Moreover, they will have to provide all information and documents to the home buyers, at the time of booking. Consequently, RERA is likely to filter out the inexperienced, unprofessional, fly-by-night operators, as brokers not following the guidelines will face hefty penalty or jail or both.
How can brokers become RERA compliant?
- Section 3: Promoter cannot advertise, book, sell or offer for sale, without registration with RERA.
- Section 9:
- No agent can sell any project without obtaining RERA registration.
- Agents’ RERA number needs to be documented in every sale facilitated by him.
- Registration needs to be renewed.
- Registration can be revoked or blocked if any breach is made to conditions of registration for a specified time.
- Section 10:
- No agent can sell a project not registered.
- Maintain books and records.
- Not be involved in unfair trade practices.
- Make an incorrect statement – oral, written, visual.
- Represent that services are of a particular standard.
- Represent that the promoter or himself has approval or affiliation which such promoter or himself does not have.
- Permit publication of advertisement in newspaper or otherwise of services not intended to be offered.
- Agent needs to facilitate possession of all documents to the allottee at the time of booking.
