A person who works and handles real estate deals on behalf of other people during real estate transactions is known as a real estate agent.
A real estate agent is benefited through the service he provides, for which they are given fees. Real estate agents can be of different types, such as middlemen, brokers, property dealers, and others.
The main services that real estate agents provide include deals in real estate, the sale of plots, introducing sales, buildings, apartments, and others.
For real estate agents to actually act as agents, they are liable to get RERA registration under the RERA Act in India.
This act has also granted the state government significant powers as well as rules and regulations for the registration process of RERA.
There is another rule in this act that requires any land area that is more than 500 square meters or the number of total apartments that are more than 8 registered under this act.
In addition, the properties can only be sold by agents that have registered under this act.
Therefore a real estate agent who is legislated under this act can only deal in properties and is eligible to sell them. Here is an overview of RERA Registration for Agents by ESPECIA.
RERA for Agents
RERA Act was introduced in 2016, according to which real estate agents can only work to facilitate transactions and dealings of real estate if they are registered under the act.
In addition, they can only do other activities, such as buying and selling off the market, if they are registered as per section 3 of this act.
This registration is necessary for middleman broker property dealers and others.
It also ensures the fair practice of real estate handling projects as well as land sales.
There are also certain regulations and exemptions of the registration under this act for real estate agents.
Real estate agents cannot sell building apartments and plots if they are not authorized under this act.
This act was introduced in 2016, and it came into effect by the government of India in 2017.
This act has certain limitations, such as only applicable for the land of more than 500 square feet and more than 8 apartments.
The rules and regulations of this act also state that they should disclose the registration number of the real estate agent in every deal or transaction they make.
The state government regulates these, so they are only responsible for any implementation of this act for their particular state.
The main goal for implementing this act and its registration is to promote a healthy, efficient, and transparent real estate market and to protect the goals of real estate agents, promoters, and owners.
The registration fees are also different in every state. This is because the rules and regulations for the act and its registration is also different in every state.
The time period for the validation of the registration can be increased by paying more fees.
Any violation of the rules and regulations of the act and registration can result in the cancellation of the license.
Benefits of RERA Registration for Agents
There are various benefits for both real estate agents as well as the person during the registration of RERA.
According to this, the real estate agent and the real estate project registered under this act can be dealt with by each other only.
Registration is also beneficial because of which booking, selling, marketing, and advertising for buildings, apartments, and plots are possible.
But there are also a few cases under which the registration for this act is not required. These exemptions are given below:
- Read development, repair, and renovation of the land, which does not include some services such as new allotment of buildings, advertising, marketing, etc.
- The total number of apartments is less than 8, which is to be developed, including all phases.
- Renovation and repair of the buildings, plots, or apartments do not include advertising or marketing.
Therefore, registering under the RERA Act for all real estate agents is safe. Furthermore, registering under this act also ensures credibility among sellers and buyers to show professionalism.
Documents required for RERA Registration for Agents
Real estate agents act as a mediator between the buyer as well as the builder to facilitate transactions.
The registration number is also allotted to the real estate agents, which is valid only for 5 years and comes into use every time the transaction is made through him.
The registration of RERA, in addition to form G, requires the following document:
- Any information or document that is specified by the required authority in the regulations.
- A valid copy of the address proof of the place of business and residence.
- A valid copy of the PAN card.
- Photographs of the real estate agent if he is working individually. In addition, photographs of the directors or partners are also required in case they are working as a team or other entity.
- Article of association as well as a memorandum of association in case it is required.
- A brief detail of information such as the name of the company, partnership, type of enterprise, registered address, name, etc.
Process of RERA Registration for Agents
- Validity for RERA Registration for Agents: the validity under registration for this act is valid only for a time period of 1 year. It can also exceed 1 year, depending on the fees paid. The registration under this act is also renewable once its period is finished. In addition, the registration of the real estate agent can also be revoked by the authority under certain conditions. This can also be caused if the real estate agent got the registration through the process of fraud or misrepresentation.
- State government provisions for RERA Registration for Agents: the projects as well as real estate agents under the registration of this act are governed by the state government. There the application, as well as the registration procedure that is made to the RERA regulator, should be submitted to the respective state.
- Penalty for RERA Registration for Agents: there is also a penalty for the agents who are not registered under this act. For example, if any real estate agent is not registered under this act, then a penalty of rupees 10000 is charged to the person every day. This penalty is also applicable to the real estate agent if the registration is conducted in any fraud process. The registration fee can also be extended up to 5% of the building, apartment, or plot cost.
- Certificate of RERA Registration for Agents: after the real estate agent makes the application for registration under this act to the concerned authorities, the registration is provided for the entire union territory or the state. The registration process is completed within 15 days in maximum states.
- Duties of RERA Registration for Agents: there are also certain duties and responsibilities for real estate agents that are registered under this act. For example, the real estate agent is not allowed to give false information or representation for any kind of service. In addition, the real estate agent also does not have permission to give any approval, which is not having.
- Procedures for RERA Registration for Agents: the registration under this act is required to do on the official website of RERA of that particular state. After that, click on the online registration option and form for the agent registration. The form is needed to be filled with all necessary information, such as a registered address, name, and others. All necessary documents that are mentioned above are required to be uploaded. Submit the registration application by filling out or paying the required fees. After a successful registration certificate, as well as a registration number, will be allotted to you.
Importance of RERA Registration for Agents
Registration under this act for real estate agents is necessary. This is because the authority of the act states that no real estate agent is permitted to facilitate or take part in the process of real estate dealing on behalf of any other person until and unless registered under the section provided.
These rules and regulations are formed for a certain number of apartments and buildings.
A penalty can be charged if any real estate agent is part of real estate dealing or transaction processes.
So it is very clear to state that if you are considering starting your profession as a real estate agent, you must register under this act.
Without the registration number, real estate agents are also not allowed to sell as well as purchase any kind of property.
The registration under this act is also compulsory for any builder to develop any commercial or residential property over 500 square metres in the land.
The apartments should be more than 8 in this scenario. The registration also helps increase investment and the interest of homebuyers in the real estate market.
Registration under this act is also necessary to promote transparency in the procedures of execution and marketing.
There can be many legal problems that can occur to a person who is not registered under this act.
The state laws and regulations also state that registration under this act is important and compulsory.
If the registration is not done, the real estate agents will not benefit from the government.
It is necessary and important to register under the act for real estate agents because:
- It helps to gain confidence as well as trust among buyers.
- It also helps to increase and promote transparency in real estate work.
- With the help of registration, the work regarding the real estate market is considered authorized.
- The registration number and certificate also act as legal proof for a person to be a real estate agent to sell or promote any kind of property or project.
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Conclusion
RERA Act was introduced in 2016, which came into fact in 2017. The rules and regulations for this act are different in different states.
According to this act, every real estate agent or broker should register to participate in the process of property dealing or transaction.
Registration is necessary, which is done to authorize their practice and reduce the chances of fraud in India.
If they are found to be registered under this act but through any malpractice, then their license can be cancelled easily.
In addition, if they fail to obey the rules and regulations of this act, it can also result in the cancellation of their license.
The documents and the process of registration are very easy for this act. There are various benefits and exemptions of registration that should always be kept in mind.
