RERA REGISTRATION PROCESS – FOR AGENTS

RERA REGISTRATION PROCESS – FOR AGENTS

Real Estate Agent or Broker or by whatever other name’s they are called, are the lifelines of the Real Estate Industry.


Overview

Real Estate Agent or Broker or Middleman or by whatever other name’s they are called, are the lifelines of the Real Estate Industry. The bridge the gap between the Customer and Promoters/Builders. The main work of these Real Estate Agent is to sell the plot, flat, building, and land.

They earn a certain percentage of commission by selling any plot, land, building, Flats and other real estate projects. It is mandatory for these Real Estate Agents to get themselves registered as per the RERA Act. All the real estate agent must get a RERA Registration for Agents.
 

The Real Estate Regulatory Authority (RERA) Act was introduced by the Government of India in the year 2016 but it came into existence in the year 2017. As per the RERA Act, it is mandatory for all the real estate projects whether Residential or Commercial with a land coverage of over 500 sq. mt. or 8 apartments to get registered with the authorized regulatory body.
 


 

The real estate agent too has to get themselves registered as per the RERA Act. Registration under RERA Act is mandatory because one has to show the registration number through every sale. 

State Governments has been facilitated by the RERA Act, with the powers to issue rules and regulations related to RERA registration. In order to regulate and promote the real sector in the state, it is necessary for every State Government to set up a Real Estate Regulatory Authority.
 

It is the responsibility of the Authority to protect the interest of all the parties associated in the real estate industry such as promoters, real estate agents etc. The authorities also have the responsibility to work in that direction which helps the real estate sector to grow and also help them by providing a healthy, fair, and competitive sector.
 

Only the registered agents have the authority to make any deal in the real estate sector as per the RERA Act, 2016. Section 3 of the RERA Act, states that the real estate agent can themselves sell and purchase any registered real estate properties.
 

Who are Real Estate Agent?

Section 2(zm) of the RERA Act, 2016, has defined “Real Estate Agent “. According to this section, the real estate agents are defined as persons who operates on behalf of other person in the transaction of :- 

  • transfer of his plot, apartment or building, as the case may be, in a real estate project;
     
  • by way of sale, with another person or transfer of plot, apartment or building, as the case may be, of any other person to him;
     
  • and receives remuneration or fees or any other charges for his services whether as commission or otherwise;
     
  • and includes a person who introduces, through any medium, prospective buyers and sellers to each other for negotiation for sale or purchase of plot, apartment or building, as the case may be;
     
  • and includes property dealers, brokers, middlemen by whatever name called.”
     

RERA Registration for Agents

RERA Registration for Agents is a mandatory thing under section 9 of the RERA Act. As per the Act,

  1. Without RERA Registration, the real estate agent cannot sell or purchase any real estate property that is registered under section 3 of the RERA Act.
     
  2. All the real estate agent have to make an application to the concerned Authority for registration as per the prescribed format within a stipulated time and by paying the applicable fees along with the necessary documents as per the respective state.
    Then the concerned Authority will grant a single registration to the real estate agent which is applicable in that respective state from where the registration has been obtained.”
     

Only the registered real estate agents are eligible to sell/purchase any property or apartment or building or land under the RERA Act.
 

Advantages

As per the RERA Act, the real estate projects that are registered under RERA Act can only be dealt by those real estate agents that have the RERA registration. In order to advertise, market, book, sell or offer for sale, or invite persons to purchase in any plot, apartment or building RERA registration is must.
 

It is mandatory for the agents to have a RERA registration because it helps to establish the credibility amongst the prospective buyers and sellers and also show professionalism.
 


 

Functions of Real Estate Agent
  1. The agent should not encourage any deal of selling/buying of any property which is not covered under the registration;
  2. To maintain and preserve such books of records and documents that are utmost important;
  3. Should not be indulge in any out of line trade practices
  4. To encourage for protecting all the important information’s and documents, as the allottee, is eligible for, at the time of selling or buying of any plot, land or building,
  5. To discharge any other functions as may be prescribed.
     

Documents required for RERA Registration for Agent

  • Name of the agent as mentioned in the PAN card
  • Authentic address of the agent
  • Contact Details
  • A passport size photograph of the agent
  • Information related to his enterprise such as name, registered address
  • Details pertaining to the organization-type such as Partnership firm/Proprietorship firm/ Private Limited/Public Limited/LLP with a registration number
     

Registration Process

For registration, an application form is recorded with the expense and other relevant documents.

  • After filing the application, regulator will issue a registration number. This registration number is mentioned in the documents that are related to the sale of the property.
     
  • Books of accounts, records and other exchange related documents are required to be kept up on a quarterly premise.
     
  • Submission of certain data and reports is required which is related to the venture entered with the purchaser.
     
  • While recording an application, you should know that the agent might be suspended if there should arise an occurrence of deception of facts or extortion at the time RERA registration.
     

RERA Registration Fees for Real Estate Agent under RERA

  • Amount of Rs 10,000/-, in case of the candidate being a person.
  • Amount of Rs 1,00,000/-, in case of the candidate is an entity and is not listed under the Companies Act 2013.
  • Amount of Rs 25,00,000/0, in case of the candidate, is a body corporate which is registered under the Companies Act, 2013.
  • The applicable charges will have to be paid to the authority through NEFT/RTGS System. It can be paid at the time of filling of the application/compensation request/ demand draft payable at the leader of the Authority and drawn on any planned bank along with an application.
     

Validity for Registration

  • The validity of the RERA registration for agents remains for a time period of one year or more depending on the amount of fee paid. The same can be renewed also.
  • Authority possesses the right to revoke the agent’s registration in case of fraud/misrepresentation/breach at any given point of time.
  • Important Instructions for Real Estate Agent
  • To ascertain that the real estate property gets registered with the state RERA.
  • To ascertain the handover of all the relevant papers/documents to allottee.
  • Refrain from giving a bogus guarantee or false commitment.
  • Refrain from indulgement in any sort of misbehavior.

 

FREQUESNTLY ASKED QUESTION'S (FAQ’s)
 

What do you mean by RERA?

The Real Estate Regulatory Authority (RERA) Act was introduced by the Government in order to protect the interest of the party involved in the deal of real estate project.
 

When is RERA introduced?

The Real Estate Regulatory Authority (RERA) Act was introduced by the Government of India in the year 2016 but it came into existence in the year 2017.
 

What is the advantage of RERA registration for agents?

As per the RERA Act, the real estate projects that are registered under RERA Act can only be dealt by those real estate agents that have the RERA registration. In order to advertise, market, book, sell or offer for sale, or invite persons to purchase in any plot, apartment or building RERA registration is must.

It is mandatory for the agents to have a RERA registration because it helps to establish the credibility amongst the prospective buyers and sellers and also show professionalism.
 

What is the function of Real Estate Agent?

The Functions of real estate agent are as follows:

  • The agent should not encourage any deal of selling/buying of any property which is not covered under the registration.
     
  • To maintain and preserve such books of records and documents that are utmost important.
     
  • Should not be indulge in any out of line trade practices
     
  • To encourage for protecting all the important information’s and documents, as the allottee, is eligible for, at the time of selling or buying of any plot, land or building,
     
  • To discharge any other functions as may be prescribed.
     
Is RERA registration compulsory for real estate agent?

Yes, RERA registration is mandatory for the real estate agent as without it they cannot deal in the RERA registered project.
 

Can a RERA registration as obtained by the real estate agent in one state will work in another state?

No, RERA registration as obtained by the real estate agent in one state will not work in another state. The real estate agent has to obtain another registration for another state.
 

What are the documents required by the real estate agent in order to obtain a RERA registration?

The documents as required by the real estate agent in order to obtain a RERA registration are as follows:

  • Name of the agent as mentioned in the PAN card
  • Authentic address of the agent
  • Contact Details
  • A passport size photograph of the agent
  • Information related to his enterprise such as name, registered address
  • Specific details stating the type of organization such as Partnership firm, Proprietorship firm, Private Limited, Public Limited or LLP with a registration number
     
Edited by Minu Mishra

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