Before you hire a real estate agents always ensure the broker is registered with the regulatory. Govt has taken this step to minimize the property frauds in the real estate market in India.
Why did real estate agents need to register in India?
India is a developing country with a growth rate of around 7.5% P/A. As the growth rate increases, it creates jobs that increase public welfare, which is a good sign for the future of the nation. India is so vast and expanding in terms of human population that basic life necessities such as food, work, and home are in accelerated mode. The housing among these things is one of the most important requirements, as people become rich. Initially, house seeking people approach a broker or agent who acts as an interface between buyer and seller, trying to bring together sellers who want to sell, and buyers who want to buy.
Who is a broker/agent?
In simple language, real estate agents are persons who buy and sells goods and assets to others or can mediate between two parties willing to exchange their assets.
The broker must be registered
Real estate business is one of the greatest revenue generators in India, but there was never a regulatory body that issued regulations and guidelines. As a result of this failure, people fall into the trap of immoral acts of persecution by contractors and brokers and become victims of counterfeit real estate transactions. Until now, what happened was that the brokers (real estate agents) had a free play on the Indian housing market, where they misused their customers and misinformed their clients, leaving them unhampered as there was no authority to restrain them. Buyers come from the lower middle-class, or middle-class background are primarily targeted by these brokers.
- In March 2016, the government passed a Law “Real Estate (Regulation and Development) Act, 2016 (RERA)” to regulate the real estate market and make strict guidelines that developers and brokers must meet to sell their real estate. Under RERA, brokers or agents must ensure that they are duly registered with the regulator. Once registered, the broker becomes accountable to home buyers and is fully responsible for their business activities and practices.
- The registration of real estate agents is also helpful for them as the real estate legislation obliges the developers to provide the regulatory information about the current state of construction projects, the status of the land where house units are developing, any delays in completing the layout plans etc. Brokers must also know all that because as intermediaries he deserves to know everything that protects him from unknowingly making false claims to a homebuyer.
- If a broker does not register himself, then he will be punished according to the provision of the law.
Punishment for not complying with the registration provision
Section 62 of RERA provides punishment for non-registration and contravention which states: If any real estate agent fails to comply with or contravenes the provisions of section 9 or section 10, he shall be liable to a penalty of ten thousand rupees for every day during which such default continues, which may cumulatively extend up to five percent. Of the cost of plot, apartment or buildings, as the case may be, of the real estate project, for which the sale or purchase has been facilitated as determined by the Authority.