In the real estate market, the brokerage system has a prominent function and is an important feature. Simply put, a broker is a middle-person who links property buyers and sellers and is usually paid by a transaction fees in the form of commission. This career is a lucrative one because it is readily accessible without any strict qualifications or standards to be met, no requirements for experience to be satisfied and no specific guidelines to be followed, thus reducing the level of accountability or transparency. For this reason, the industry today consists of thousands of non-professional real estate agents and brokers. The central government, conscious of this vulnerability, lack of accountability and transparency, brought this profession within the reach of the RERA Act. Real estate agents are required to be licensed with the Real Estate Regulatory Authority by following the Act and are bound by the laws and regulations arising from that authority.
Who is a Real Estate Agent?
Section 2 (zm) of RERA defines real estate agents. According to the definition, a “real estate agent” means any person, who negotiates or represents other persons for transfer of a real estate property by way of sale to another person and receives remuneration or fees or any other charges for his services whether as commission. A real estate agent is also a person who introduces, through any medium, prospective buyers and sellers to each other for negotiation for sale or purchase of real estate property, as the case may be, and includes property dealers, brokers, middlemen etc.
Why is the Registration important?
Section 9 of the RERA Act relates to the registration of the real estate agents. According to section 9 of the RERA Act, it is important for any real estate agent to register itself with the RERA, without which he/she is not allowed to indulge in any kind of action related to facilitating prospective buyers and sellers into selling or purchasing there any kind of real estate property whether it is a plot or a building or an apartment. Further, for obtaining such registration, it is also required by the agent to apply for such registration with RERA by submitting a certain sum of fees and the required documents within a given time period. The authorities may grant registration on being duly satisfied that the conditions laid down by the RERA Act have been fulfilled. The authorities may grant a single registration to a real estate agent applicant for the entire State or the Union Territory or it may even reject any such application on the grounds of non-fulfilment of any rules as laid down under the RERA Act. But for any such rejection, the authorities are required to record the reasons and such rejection can also not be done without giving a due opportunity to the applicant of being properly heard. According to the rules of the RERA Act, if any such applicant’s application is not rejected within a period of 30 days, he or she is assumed to have been registered with the authority.
The real estate agent is required to note his/her registration number on any transaction assisted. It is also given under the RERA Act that any registration that has once been granted to any real estate agent as per the provisions of the act, such a registration shall remain valid for the specific given time duration and shall be renewable with the submission of required fees after specific time period as is prescribed by the rules. It is also provided that any real estate agent who commits any kind of breach of any condition or rule that has been laid down under the act may have his/her license revoked by the Authority. In case the authority believes that such registration has been acquired by anyone through means of misrepresentation or fraud, the authority has the power to revoke any such registration of any such real estate agent or may suspend any such real estate agent for a specific time period. This power of the authority also comes with the clause that the real estate agent under the question must be given an opportunity of being fairly heard before any such action is taken against him or her.
Registration Procedure
The provisions for registration of real estate agents in various state specific RERA Rules are similar in nature. These provisions are given under Section 8. Wherein the provisions include how the registration is to be made, when and how the registration should be granted to such agents, renewal process of the registration and revocation of registration on certain grounds. All these provisions are more or less similar in all the state specific RERA Rules. Except the fees requirements which are prescribed by each state differently.
A real estate agent is required to make an application to the RERA for registration in such a form or manner, within the given time period along with all the other such documents as are required and fees as may be prescribed in the respective State’s rules.
Also, at the time of registration with the RERA, the agent is required to produce the following list of details and documents:
- Name, address, contact details and photograph of the real estate agent
- Authenticated copy of PAN card
- Brief details of his enterprise including name, registered address, types of enterprises
- Particulars of registration as a proprietorship, society, partnership, company etc., including bye-laws, MOA, AOA etc.
- Any other information as may be specified by the Act, rules or regulations made thereunder.
The authority is supposed to grant a single registration to a real estate agent for the entire state or Union Territory. And every registered real estate agent is then required to quote his registration number in every sale that is facilitated by him under the RERA Act.
The registration certificate is valid for 5 years from the date of receipt. It can be revoked before the expiry of this period in case the agent breaches the RER Act or Rules.
Given below is the link to the online portal where one can register himself or herself as a real estate agent with the Real Estate Regulation Authority:
“https://www.rerafiling.com/agent-registration.php”.
Registration Process under different state RERA rules
Different states have their own specific RERA Rules that are to be followed in that respective states. These state specific RERA Rules are more or less similar to that of the RERA Act of 2016. The provisions for registration of real estate agents in various state specific RERA Rules are similar in nature. These provisions are given under Section 8 and onwards of these rules (in most rules). Wherein the provisions include how the registration is to be made, when and how the registration should be granted to such agents, renewal process of the registration and revocation of registration on certain grounds. All these provisions are more or less similar in all the state specific RERA Rules. Except the fees requirements which are prescribed by each state differently, everything else in the procedure of real estate agent registration is same in all rules. The provision consisting functions of the real estate agents are not there in the state specific RERA Rules. While there is only one provision that talks about functions in most of them which says other functions of the real estate agent. This other function of the real estate agents is that he or she is required to provide any such kind of support or assistance as required by the allottee and promoter in exercising their rights properly. And should also help them in fulfilment of their due obligations as well. Except these differences, the state specific RERA Rules are more or less same in nature and follows the same line of the central RERA Act, 2016.
Conditions for Registration Certificate
The following conditions/ compliances are to be adhered to by the real estate agents after attaining the registration certificate:
- Not to facilitate sale of unregistered property;
- Due maintenance of books of accounts records and documents as provided under rule 14;
- Avoid use of any unfair trade practices as enumerated under the rules assistance to enable the allottee and promoter to exercise their respective rights and fulfil their respective obligations at the time of booking and sale of any plot, apartment or building, as the case may be; and
- Generally adhere by the provisions of the Act and the Rules.
These conditions are also mentioned as conditions in the registration certificate as well as Section 10 of RERA.
“Article by Mr Mohammad Sameen & Ms Damini Srestha under internship of Adv Shankarlal Raheja
The Views herein are personal and while careful attention has been given to ensure that the information is accurate and assume no liability or responsibility for any reliance thereon. This article is merely information and knowledge sharing activity and is not a substitute to legal advice. We shall not be liable for any loss or damage caused due to any reliance thereof”.