As per the RERA Act 2016, only RERA-registered agents can work in the real estate market, i.e. only registered agents can facilitate the sale and purchase of real estate properties registered under section 3 of the act. iv. includes property dealers, brokers, middlemen, by whatever name they are called. To ensure fair practices in handling real estate projects, land sales, or property sales, the rules and regulations of RERA have prescribed certain obligations for Agents to lead the transactions. As per the RERA Act, no real estate agent can sell or purchase any plot, apartment or building without obtaining registration under this section.
The Indian government enacted the Real Estate Regulatory (RERA) Authority Act in 2016, and it came into force in 2017. After the implementation of the Real Estate Regulatory Authority (RERA) Act, all residential and commercial real estate projects with land of more than 500 sq. ft. or with at least eight apartments must register with the RERA authority. The Real Estate Regulatory (RERA) Authority Act also makes it mandatory for all real estate agents to register formally, as they must disclose their registration number during every real estate sale. The Real Estate Agents are individuals who act as intermediaries in all real estate deals.
As real estate is subject to the appropriate State Government, and they are responsible for implementing RERA. The State Government is required to establish the Real Estate Regulatory Authority to regulate and promote the real estate sector within the State. The main aim of the implementation of this authority is to facilitate the growth and promotion of a transparent, healthy, and efficient real estate sector and to protect the interests of owners, promoters, and real estate agents.
The functions of RERA Registration are mentioned below:
- Real Estate Agents Registration.
- Real Estate Projects Registration.
- Certifying Disclosures of Real Estate Projects by Promoters.
- Complaints Redressal.
- Recommending ideas and solutions to the appropriate State Government on matters relating to the promotion and development of the real estate sector.
Why Real Estate Agent Registration is compulsory
Real Estate Agent Registration is compulsory because Real Estate Regulatory (RERA) Authority Act says that “No real estate agent shall facilitate the sale or purchase of or act on behalf of any person to facilitate the sale or purchase of any plot, apartment or building, as the case may be, in a real estate project or part of it, without obtaining registration under this section”. So, it is very clear that if any individual is thinking of starting his/her profession as a real estate agent or mediator, then it is mandatory to register under RERA. No real estate agents are allowed to purchase or sell any of the property or land without obtaining the RERA registration number.
The registration under RERA is compulsory for any builder who wants to develop a residential or commercial property on land that is more than 500 sq. The number of meters or proposed apartments in all phases exceeds 8. It aims to safeguard the interests of home buyers and increase investments in real estate. Real Estate Act obligates all residential and commercial builders to register under RERA to promote transparency in marketing & execution. And if any real estate agent fails to obtain the RERA Registration, then he/she may have to face some legal problems. Hence, registering as a Real Estate Agent is compulsory.
Real Estate Agent RERA Registration
Real estate agents are the heart of the real estate industry. They are the mediators facilitating transactions between the builder and the buyer. Real estate agents will be given a registration number by the authority, which will be valid for 5 years and will be quoted in every transaction facilitated by them. Real estate agents wishing to obtain RERA registration must apply in Form G along with the following documents:
- Brief details of his enterprise, including its name, registered address, type of enterprise (proprietorship, societies, partnership, companies, etc.
- Particulars of registration including the bye-laws, or memorandum of association and articles of association, etc., as the case may be.
- Photograph of the real estate agent if he is an individual and the picture of the partners, directors, etc., in case of other entities.
- Authenticated copy of the PAN Card.
- An authenticated copy of the address proof of the place of residence and business.
- Such other information and documents, as may be specified by the Authority in regulations.
Importance of Real Estate Agent Registration
As per the State Law, Real Estate Agent Registration under RERA is important nowadays. If you are not registered under RERA, then you will not be eligible for any benefits from the government. Here are some of the essential facts about RERA:
As per the RERA Act, registration is mandatory for developers, builders and Agents
- Registration of the project under RERA is essential; in the case of its absence builder stands to lose the project
- Registration of the project under RERA is essential so that the Developer/Builder and Agents can promote the property
- Every advertisement of the project requires the RERA registration number of the project
- It is legal proof for the real estate agent to promote and sell any project or property
- It will make your work an authorised one
- It will increase the transparency of your work
- Gains trust and confidence among buyers.
Process of RERA Agent Registration
- To register as a real estate agent, you have to visit the official website of your state RERA, and for Tamil Nadu, it is http://www.tnrera.in/index.php.
- Find and click on the online registration form for RERA Agent Registration.
- Fill the form with all needed details, including name, registered address, type of enterprise (proprietorship, societies, partnership, companies, etc.)
- Upload all the required documents.
- And submit the form and pay the required registration fees.
- After the successful submission of the registration form, you will receive your RERA registration number along with the RERA Registration certificate.
- You can find a sample of the application in the link below:
Documents Required for RERA Registration for Agents
Some documents are needed to complete the registration form. You can see a list of required documents, which is mentioned below.
- An authenticated copy of the PAN CARD of the applicant
- Authenticated copy Identity card of the applicant
- Photograph of the applicant
- In case of a partnership/company, etc, brief details of the enterprise have to be mentioned.
- Authenticate a copy of the letterhead
- Address proof of the place of residence and business.
RERA Registration Fees
The applicant or the company applying for RERA registration must pay fees for Agent Registration and Project Registration. Actually, RERA Registration fees are entirely dependent on the state, and they may differ from one state to another as every state holds its own RERA rules and regulations. You have to pay the fee after submitting your form, and it can be done online.
The Government fee for real estate agents to register under the Tamil Nadu RERA Act is Rs. 25000 if the applicant is an individual and Rs. 50,000 if it is a corporate entity like a company, partnership firm, LLP, etc. While registering for the RERA agent license, the government fee must be paid through account transfer or DD.
The validity of the RERA Real Estate Agent License
After obtaining the RERA license for real estate agents, the validity of this license will be for a period of 5 years. In case of any violation to the Act, the regulator of the RERA has the power to cancel the RERA Agent registration anytime.
Apart from RERA Agent Registration, there are other compliances that every agent should be aware of:
- To ensure that the real estate property that needs RERA registration has been registered with the respective State RERA
- To ensure all the papers, documents or information required in the deal have been given to the allottee
- Don’t give any false promise or misleading commitment
- Don’t get involved in any kind of malpractice
If any real estate agent fails to register under the RERA Act, then it will lead to a penalty of Rs. 10,000/- per day during the period of default. And, if any violation, there is a provision for cancellation of RERA registration and imprisonment.
