RERA for Agents
A “Real estate agent” is a person who acts on behalf of another person in a real-estate transaction, and is benefited with fees for the service extended. Real estate agents include the likes of property dealers, brokers, middlemen etc.
In order to stimulate the fair practices in the real estate sector, RERA has made it mandatory for the Real-Estate Agents to get registered under the RERA Act applicable in India.
In case, if the intermediary is failed to follow all the rules and regulations prescribed under RERA act then not only the registration of him/her is revoked but as well as he/she can be penalized to pay Rs. 10,000 per day and this can be extended up to 5% according to the cost of the unit.
Benefits of RERA Registration for Agents
Under the RERA Act, a real estate project that must be registered under the RERA Act can be dealt only by a real estate agent having RERA registration. RERA registration is required to advertise, market, book, sell or offer for sale, or invite persons to purchase in any plot, apartment or building. Only the following types of plots and apartments are exempted from RERA registration requirements:
- The area of land proposed to be developed does not exceed 500 square meters.
- The number of apartments proposed to be developed does not exceed eight, inclusive of all phases.
- Renovation or repair or re-development which does not involve marketing, advertising selling or new allotment of any apartment, plot or building.
Hence, RERA registration is a must for all real estate agents. Further, having RERA registration would help establish credibility amongst prospective buyers and sellers and show professionalism.
Recommendations for real estate agents
- Follow all the rules and regulations prescribed under RERA authority.
- If you are a promoter or a real estate agent then you should keep yourself updated about all facts and information.
- Make sure to keep the information confidential.
- Try to get all the information about the real estate market.
- Avoid offering false information to buyers.
- Keep the process transparent by protecting the interests of both the buyer and promoter.
- Don’t get involved in any kind of malpractices of the real estate market.