After enactment of RERA regulation which mandates the registration of eligible Real Estate Project and Real estate Agents with RERA Authorities, we are receiving a lot of query from real estate agent situated in different States. The primary question that they ask as to why are we required to get registered with RERA authorities?
Since, there are heavy fees for the registration for real estate agent ranging from Rs. 10,000/- to Rs. 2,50,000/- depending upon the entity and State where you are situated, the benefit should also be aligned with the cost.
Covering those issues regarding RERA registration of Real estate, we have prepared some FAQ which would clear the major of doubts;
Q1 Why Real Estate agent require RERA registration?
Ans. As per section 9 of RERA, 2016, every real estate agent who
– Facilitate any sale or purchase of, or
– Act on behalf of any person to sale or purchase of
– Any plot, building, apartment or any other part
– Of any real estate project registered under this act
– Being sold by promoter
shall require RERA Registration. In crux, any agent who deals in sale or purchase of real estate property which is registered under shall require RERA registration.
Q2 Whether all kind of property dealer shall require RERA registration?
Ans. No, as mentioned above, the dealers/agent which are dealing in RERA registered properties in first by the promoter, shall require RERA registration. It means the dealer shall be out of registration requirement;
- Agent dealing in the second sale
- Agent dealing in non- RERA registered property
- Dealer/agent engaged in renting of properties
- Agent/dealer dealing in properties completed before 01/07/2017
Q3 What are other requirements by RERA laws for agents?
Ans. Other compliances for agent includes
- Shall disclose its RERA registration no. on every sale or purchase through it
- Shall not deal in any property which requires RERA registration but it has not been registered with RERA
- Shall maintain books of accounts and details required by respective RERA
- Shall not involve himself in any unfair trade practice
- Shall not advertise any false or misleading advertisement by any mean
- Shall not make any false or misleading statement orally or written
- Shall facilitate the possession of all required information to the allottee
Q4 What are the consequences for non- registration?
Ans. A penalty of Rs. 10,000/- per day may be levied which may cumulatively extend upto 5% of the cost of real estate property. There is the provision of imprisonment also, which may extend upto 1 year.
Q5 What is other benefits of RERA registration?
Ans. In our opinion, among others, there may be intangible benefits
- if the agent is RERA registered, he shall be recognised by all the promoters for sale or purchase of RERA registered properties.
- His information shall be live on RERA website and people can search them.
- Brand value and commitment
Q6 What is the process for RERA registration for Real Estate Agents?
Ans. The process of registration starts with registration form with RERA authorities of the State where you want to deal with? The RERA registration fees, forms and process differ from State to State.
Q7 If the agent is active in multiple State, whether registration shall be made in separate States?
Ans. The real estate agent need to register in every State RERA where the real estate property is situated.
Q8 How can Centrik help?
Ans. Centrik has separate department of RERA Consulting where we work on the following model
Core Team – Core team consists of 5 experienced experts with complete research on RERA in different States.
Associate Team – We have associate team in major of the cities. The work of the associate team is to align with client and advice about the documents.
Q9 What is the validity of the RERA registration?
Ans. The validation of RERA registration shall be valid for 5 or 10 years depending upon the State where you are registering.
Author – Amarpal, RERA Consulting – firstname.lastname@example.org
For, Centrik Business Solutions Pvt Ltd.
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.