Since the beginning, it has been cleared by the central government that no developer is allowed to sell or market their projects in states until they are RERA registered. Because of which all the developers who are ready to sell their on-going and new projects are hurrying to register their projects with the authority. Although the real estate brokers are giving their feet some rest, as they are no such deadline for them but in the same line they can only deal in with RERA registered projects.
Further RERA aims at more transparency and accountability to real estate market which brings real estate brokers under the radar.
As per National Association of Realtors-India (NRA), a real estate agent body, around 75% of total brokers may fold their business in the next three years as regulatory reform sweeps over the real estate market. “The new system will sieve out non-serious players (brokers).
It will go down to just about half a million by 2020. There will also be a series of consolidation among brokerage firms. You have to either step up or step out because the market is becoming competitive,” said Sam Chopra, president, NRA-India.
Likewise, the Confederation of Real Estate Brokers Association of India (CREBAI) also anticipated that because of immense competitive and compliance evolve in real estate sector almost 50% of local property agents may withdraw their operations.
Mr. Vikram Mehta, president of CREBAI, agreed that while brokers have not been left out of the purview of RERA, the government has “not taken care to safeguard their interest”. He said stringent provisions under RERA may force around 50% of brokers to shut their real estate broking business.
If we discuss about online portals such as 99 acres and magic bricks Maharashtra RERA chairman Gautam Chatterjee has clarified that as per REDA Act these are real estate brokers and they have to register themselves with the RERA Authorities as agents if they want to do business.
On Contrary Portals defended that they do not facilitate any sale of the project as they are only a marketplace for advertisement. They pass the leads to the developers or agents who are liable to close the deal.
Note – Please note that the above article is part of our continuous research on the related matters. It is based on our interpretation of related regulations which may differ person to person. Readers are expected to take expert opinion before relying on above.