INTRODUCTION:
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. Besides, the law has provided for numerous benefits for the purchaser as well as the builders and agents. The Act aims to curb unnecessary delays in possession delivery and ensure transparent transactions. Also, mandatory RERA registration for agents curtails or aims to check their unprofessional behaviour at times. This not only benefits the buyer but also help the brokers to build a credibility and attract potential customers.
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 talks about registration of the Real Estate Agent :
If you are an agent looking for RERA real estate registration, you must know the following:
(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.
Impact of RERA on Real Estate Sector
The RERA registration means transparency in the real estate industry and home buying process. Below mentioned are the impact that the Act has on the Real estate sector:
- All projects exceed an area of 500 sq. Mt. or is more than eight apartments must be registered with the respective state Real Estate Regulatory Authority.
- Also, it is compulsory for builders to deposit 70% of the project amount collected from the homebuyers in bank accounts through cheques. Also, it means the builders can no longer engage in fraudulent transactions or money laundering.
- There has to be a sale agreement between all builders and homebuyers as prescribed
Benefits of RERA Registration for Agents
One cannot deny the advantages of undergoing RERA agent registration. If you are working as a property broker, the registration will enhance your credibility before the buyers and you will generate more clients than before. 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
RERA registered means that the Real Estate Regulatory Authority has granted you permission to conduct the real-estate transactions. Here are the documents you require for your RERA Agent 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 misbehavior
Penalty For Non-Registration And Contravention Of Provisions:
Under the RERA Act if any Agent fails to comply or contravenes the provisions relating to registration or functions, he/she shall be liable to a penalty of Rs. 10,000/- per day during which the default continues. The said penalty may extend up to five per cent of the cost of plot, apartment or buildings of the real estate project for which the sale or purchase has been facilitated.
The online RERA registration for agents is an easy process. You can complete it by yourself. However, if you are unsure, you can take some professional help and get it done.
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