Everything Real Estate Agents Need to Know About RERA

Prior to 2016, there were many complaints from customers that real estate deals frauds or their money has been scammed. Due to increasing complaints and irregular real estate market, RERA was passed in the Indian Parliament. For each state and union territories, the Real Estate Act makes it mandatory to establish its own regulator and to establish the rules that will guide the working of the regulator.

Real Estate (Regulation and Development) Act, 2016 (RERA) aims to preserve the interests of home owners and thus raise demand in the real estate industry. The purpose of this act and the model code of the government is to establish a more equal and fair relationship between the seller and the buyer of land, especially in the primary market. It is hoped that this act would ease the purchasing of real estate by increasing accountability and efficiency.

Most of the real estate deals have brokers or agents. Even though it has been quite a while now but a lot of brokers do not have a clarity on the Act and are confused. To make you understand SBP Group has penned down points property agent must know about RERA registration.

• In order to conduct a real estate transaction, real estate brokers or agents need to register, be verified and licensed. Once brokers are regulated under the RERA regulations, the confidence of investors and home buyers is likely to improve and this could lead to an increase in sales and revenue for both brokers and developers. It will also help in making the realty market more attractive to customers.
• You have to follow rules lead down in RERA of the state you reside in. The regulatory body in each state has a number of rules in force, to be observed by the brokers/real estate agents. The law states that no real estate agent if he/she is not registered with the State Real Estate Regulatory Authority, may facilitate the sale or purchase of any property, or even act as a mediator.

Way to Register with RERA For Real Estate Agent:  Every real estate agent is required to file an application for registration to the state Real Estate Regulatory Authority, along with the fee and paperwork specified.

RERA’S Licencing Fees for Real Estate Brokers in Punjab:

If the broker is from state Punjab, he shall pay a processing fee of Rs.5,000/- in the case of the applicant being an individual or Rs.25,000/- in the case of the applicant being someone other than an individual, at the time of the application for processing through online mode at the time of online registration.

After your application is scrutinised by the regulator, it will issue a single state or union territory registration, as per your case. At this point, the authority can also dismiss your application, with ample justification to be given to you in writing. However, your explanations will still be considered before such a denial.  In case of approval of the application, the identification number and the certificate must be provided by the authority within 30 days of the date of registration.

Registration Number Validity: Real estate agents will receive a certificate number that will be valid for five years.

Renewal of Registration in Punjab: To renew the RERA Punjab certificate for agents after 5 years. In the case of an individual, the application fee for renewal is Rs 3,000 and, in the case of another user, Rs 12,000. The renewal granted by RERA is effective for a term of 5 years. The renewal must be carried out at least 60 days before the registration expires.

Documents required for Registration of Real Estate Agents:

• Passport size photograph of agents/ directors /partners
• Copy of Aadhar card of agents /directors/partners
• PAN card of real estate agent in case of individual or PAN card of Firm
• Authenticated copy of the address proof with respect to the place of business
• Income tax returns for last 3 years.

Besides that, you also need to provide the following details:

• Any details of civil and criminal cases pending against you or your company.
• Copies of letterheads, rubber stamp, receipts that you plan to use.

Jurisdiction: For the whole state in which you are registered, this registration number would be valid. In compliance with the provisions of the Income Tax Act, 1961, the real estate agent shall retain and store his books of accounts, records and papers.

Penalties: To ensure that all parties are happy, the RERA has strict rules in place. In the event of a breach, such as securing registration with misrepresentation of the evidence, theft, etc., the authority may suspend the registration of the broker for a period of time which it considers necessary. An unregistered broker working with an approved project will be paid a liability of Rs 10,000 a day over the time of default and a cap of up to 5 percent of the value of the contract or project value. The broker may, however, be permitted a chance to be heard.

After the complication of registration process, you must adhere to the following guidelines as well:

• The sale of a property which is not within a zoning area and not licenced with the authority must not be assisted by brokers.
• Real estate brokers must retain documents, paperwork and accounts.
• Any dishonest activity, which involves making false representations about standard, rating, enrolment, approval status, advertising and any deceptive information or service that cannot be provided according to the regulations, is punishable by law. The registration number should be used for all advertising, promotions, sale or buying records.

This act has been made considering the benefit of everyone. Property buyers and investors put their hard-earned money into houses, trusting the dealers and developers. Unfortunately, certain brokers, just for their own financial benefit, sell assets where the title is ambiguous or the land is disputed.

With the implementation of RERA, all this will soon come to an end & buyers could trust brokers & developers in providing them value for money.