A "Real estate agent" is an individual who acts on behalf of someone else in a real estate transaction, and is profited with fees for the service extended. Real estate agents incorporate the likes of property dealers, brokers, middlemen and so forth. Top services rendered by real estate agents incorporate the introducing as well as deal-making on leasing or sale of plot, land, building, and apartments. Under the RERA Act applicable in India, every real estate agent should obtain a RERA registration for Agent.
The RERA Act has furnished State Governments with the powers to issue rules as well as regulations relating to RERA registration for an agent. Any project where the area of development surpasses 500 square meters or if the number of apartments developed is more than eight, RERA registration shall be required for the project and the project could be sold only by an Agent having RERA registration. Subsequently, only an Agent having RERA Registration is qualified for managing in properties having RERA registration.
Benefits of RERA Registration for an agent
As per the RERA Act, a real estate project that should be registered under the RERA Act could be dealt with only by a real estate agent having RERA registration. RERA registration is requisite to advertise, market, book, sell or offer for sale, or invite individuals to purchase in any plot, apartment or building.
There are only the following types of plots and apartments are exempted from RERA registration for agent requirements:
The area of land proposed to be developed doesn’t surpass 500 square meters.
The number of apartments proposed to be developed does not surpass eight, inclusive of all phases.
Renovation or repair or re-development which doesn’t involve marketing, advertising selling or new allotment of any apartment, plot or building.
Related section with the latest amendment
RERA represents for Real Estate Regulatory Authority which is an act of the Parliament of India trying to ensure home-buyers and assists to boost investments in the real estate business. It is intended to bring clarity and responsibility that would recapture the lost faith of the individuals in the real estate business. Through RERA registration for an agent, the real estate Act, 2016 built up it in each state for regulation of the real estate sector and also acts an adjudicating body for quick dispute redressal. This Act came into existence on 1st May 2016 with 59 of 92 sections notified.
Legal Remedies
The Real Estate (Regulatory and Development) Act, 2016 provides for rules and regulations. A real-estate agent would be punished with a sum of Rs 10,000 for every day of default, which may extend up to 5% of the cost of the property, be it for non-registration or any other violation of conduct. The fee could cumulatively extend up to 5% of the price of the plot, apartment or building. Also in case of any further indulgence in unfair trade practices, an agent can get imprisonment for up to 1 year with without fine which may extend up to 10% of the estimated cost of the project.
Document Required for Registration
A duly filled RERA agent registration form.
Particulars stating the type of organization (Pvt. Ltd./Public Ltd./LLP/Partnership firm/Proprietorship Firm) with the registration number.
The particulars of registration including the bye-laws, memorandum of association, articles of association, etc. as the case may be.
Name, address, contact details and photographs of the real estate agent, if it is an individual and the name, address, contact details and photograph of the partners, directors, etc. in case of other entities.
An authentic copy of the address proof of the place of business.
An authentic copy of Pan card of the real estate agent.
