Under RERA, (the new realty law that aims to bring transparency and accountability to the real estate market), all property brokers will have to register with real estate regulators in their states.

The Real Estate (Regulation and Development) Act 2016 (RERA) aims to bring transparency and accountability to India’s realty market.

A large number of property brokers in the country may shut down their business while big brokerages would be forced to comply under Real Estate (Regulation and Development) Act 2016 (RERA).

According to real estate agent body National Association of Realtors-India (NRA), around 75% of total brokers may close down business in the next three years as the sector becomes more competitive and full of compliances.

Under RERA, which came into force on 1 May, all property brokers must register with regulators in their states. The law has also made them liable for any misinformation about the projects they sell or in case of default by developers they represent. They will have to pay a fine of up to 5% of the total property cost if they fail to comply with rules.

Moreover there is a fee that needs to be paid for registration under RERA.

Now, It has been tough for brokers to sustain themselves for the past two years because of the slowdown. Now, with RERA coming in, it will become more difficult because of the penal factor. Besides, RERA does not have any answer to problems faced by brokers.