RERA for Brokers
Changes in Brokers due to RERA-
According to RERA brokers, agents, or property consultants are also accountable along with the developers. RERA makes sure that the agents are professional and away from any unfair activities that may affect the parties in any transaction. RERA has made the realtor community more vigilant and created positive growth in this sector making real estate transactions smoother and transparent.
RERA guidelines for brokers-
RERA mandates registration of real estate agents, brokers, realtors and property consultants, whether company or individual without which they are not allowed to participate in real estate transactions. Brokers need to always mention their RERA registration number in invoices, advertisement and all important documents and maintain records of all the transactions they involve in.
RERA suggests brokers to have a valid certification from state government for their real estate consultancy. Brokers should always display the right and genuine information to the clients and avoid any kind of unprofessional conduct.
How can brokers register under RERA?
RERA mandates registration of real estate agents, brokers, realtors and property consultants, whether company or individual without which they are not allowed to participate in real estate transactions. Hence it is utmost importance for real estate agents to know about the registration process under RERA.
RERA registration usually starts from the pricing of Rs 10,000 but varies according to the broker category and state of operation. RERA registration in Maharashtra for individuals is Rs 10,000 and for companies goes around Rs 1,00,000.
The following are required for RERA registration by property agents or consultants:
- Company Details i.e. name, address and Company Type (i.e. individual, proprietorship, LLP societies, partnership, Pvt. Ltd. etc.)
- For individuals need to provide their name, address, contact details and photograph.
- For other entities need to provide their entity name, address, contact details and photograph of the partners, directors, etc.
- The authenticated copy (i.e. True copy) of the address proof of the Place of business, Phone number, Email address etc.
- Income Tax returns (IT returns) for past 3-year period. In case the entity or individual was not liable for IT returns he needs to provide declaration stating the same.
- Brokers need to provide details of their past associations with real estate projects and developers.
- Brokers need to furnish details of any pending case proceedings if any against them or partner, proprietor, director of the firm.
- Legitimate copies of their Rubber stamps, Invoice slips, letter heads etc. that they might use.
After submission of all the details a unique ID is generated for the Firm/individual which is his RERA registration ID. Using this ID anyone can view the details and background of any real estate agent, broker, consultants, or realtor on RERA website of that state.
RERA registration for brokers is valid for a period of 5 years after which they need to renew their registration.
Penalties for Real estate agents/broker/consultants/ realtors-
In case of indulging in real estate transactions without a registration number would lead to penalties for the estate agent which is Rs 10,000 per day failing which he may even be charged 5 percent of the project cost. Violation or non-compliance with the norms laid down by the RERA or state’s authority would even lead to fines and penalties.
RERA has brought great amount of structuring to the real estate sector and created integral practices among the developers and the brokers.