The Real Estate (Regulation and Development) Act, 2016, widely known as RERA, was enacted to bring much-needed transparency, accountability, and efficiency to the Indian real estate sector. Before RERA, the industry faced rampant issues such as delayed project deliveries, lack of standardized practices, and malpractices that put homebuyers at significant risk. In 2016, the legislature enacted the Act to mandate the registration of all sizable real estate projects and sets out comprehensive guidelines for promoters, agents, and other stakeholders to protect consumer interests.
Real Estate Agents in compliance with RERA
Intermediaries play a pivotal role in facilitating the sale and purchase of property. Real estate agents, as vital intermediaries between allottees and promoters, have a critical role in ensuring compliance with RERA provisions. Their adherence to RERA not only safeguards buyers but also fosters a trustworthy and professional real estate ecosystem.
Who is a real estate agent?
Real estate agents are the intermediaries who negotiate with the promoter and allottee for the sale or purchase of a plot, apartment, or building, and receive remuneration for their services. It is not necessary that a deal must take place to recognise an intermediary as a real estate agent. Even if the intermediary introduces the potential buyers and sellers, he can be identified as a real estate agent. In the Act, Section 2(zm) provides the meaning of the term ‘real estate agent.
Roles and Responsibilities of an Agent
The Act entrusts the agents with some responsibilities to ensure transparency, protect consumer interests, and promote ethical practices in the real estate sector. As per S.10 of the Act, the key responsibilities of an agent are:
Deal Only with RERA Registered Projects: The agents must exclusively facilitate transactions for real estate projects registered under RERA. The marketing, advertising, promoting or selling properties in unregistered projects is prohibited, ensuring buyers are dealing with legitimate developments.
Registration Display and Identification: Every registered agent is required to prominently display their unique RERA registration number at their place of business, on advertisements, promotional materials, and sale documents. This not only ensures transparency but also helps buyers verify agent authenticity.
Maintain Detailed Records: Agents must keep comprehensive records of all transactions, including agreements, accounts, and documents related to the sale or purchase of properties for each project. These records should be maintained meticulously and be available for inspection by authorities.
Provide Accurate and Complete Information: Agents are responsible for furnishing buyers with all necessary and truthful information concerning the project, such as approvals, clearances, carpet area, cost, anticipated completion dates, and any other relevant details. This enables buyers to make informed decisions.
Avoid Unfair Trade Practices: Agents must not engage in misleading or false advertising, misrepresent project status or promoter credibility, or offer services not intended to be provided. Ensuring honesty protects the interests of both buyers and promoters.
Steps for registering as a real estate agent under RERA
Registering as a real estate agent under RERA is a mandatory legal requirement under Section 9 of the Act, for anyone intending to facilitate the sale or purchase of properties in RERA-registered projects. An individual or even an agency can register themselves as a real estate agent. The government has taken multiple steps to simplify the registration process and now agents can register themselves via online portal. The general steps for registration are as follows:
Visit the State RERA Portal: The agent needs to visit the desired RERA portal of the state for registration as each state has its own RERA portal and registration system.
Fill the Registration Application Form: The agent needs to fill the prescribed application form for real estate agent registration. This form typically requires details such as agent name, contact information, business address, PAN card, and proof of past real estate dealings, if any.
Submit Required Documents: Along with the application, submit essential documents which commonly include:
Identity proof (Aadhaar card, passport, voter ID, etc.)
Address proof of the agent or agency
PAN card of the agent or business entity
Proof of business registration or ownership
Details of previous project dealings, if required
Partnership deed or company registration certificate, if applicable
The document requirements can vary from state to state.
Payment of Registration Fee: The agent is required to pay the registration fee as prescribed by the state RERA authority. Fees vary from state to state but are generally nominal and intended to cover administrative costs.
Verification and Processing: After submission, the RERA authority will verify the application and documents. This stage may involve background checks and confirmation of submitted information. Here, the authority cannot reject the application without providing him an opportunity of being heard.
Issuance of Registration Certificate: Upon successful verification, the agent is issued a RERA registration certificate and a unique registration number. This certificate is valid for a prescribed period (usually five years) and must be renewed thereafter to continue operating legally.
Compliance with Renewal and Other Obligations: Registered agents must adhere to all ongoing regulatory compliance, including timely renewal of the registration certificate and filing of required reports or disclosures with the authority.
By following these steps, real estate agents can lawfully and confidently operate within the RERA framework, ensuring protected and trustworthy property transactions for all parties involved.
Conclusion
The registration and compliance of real estate agents under the Real Estate (Regulation and Development) Act, 2016, mark a significant milestone in bringing professionalism, transparency, and accountability to the Indian real estate sector. By mandating registration, RERA ensures that only legitimate and responsible agents participate in property transactions, safeguarding the interests of buyers and promoting ethical business practices. Registered agents play a critical role in facilitating smooth and trustworthy transactions by providing accurate information, maintaining detailed records, and adhering to regulatory norms. Non-compliance with RERA provisions can lead to severe penalties, underscoring the importance of adherence for sustainable business operations.
In this evolving landscape, real estate agents must embrace their responsibilities and leverage tools like LawSimpl to navigate complex regulations efficiently and ensure full compliance with RERA, thereby enhancing their reputation and client trust in a highly regulated market.