To accomplish a fair practice in handling real estate projects or land sales or property sales, the rules and regulations of RERA have prescribed certain abidance for Agents to lead the transactions in real estate projects or land sales or property sales. 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 the year 2017. After the implementation of this Real Estate Regulatory Authority (RERA) Act, it is compulsory that all residential and commercial real estate projects with the land of more than 500 sq. or not less than 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 it is required to disclose their registration number during every real estate sale. The Real Estate Agents are individuals who act as an intermediary in all real estate deals.
As real estate is subjected to that appropriate State Government and they are responsible for conducting the implementation of RERA. State Government is required to establish the Real Estate Regulatory Authority to regulate and promote the real estate sector in and around the State. The main aim for the implementation of this authority is to facilitate the growth and promotion of a transparent, healthy, efficient real estate sector and to protect the interest of owners, promoters, and real estate agents.
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 appropriate State Government on matters relating to the promotion and development of 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 thinking of starting his/her profession as a real estate agent or mediator, then it is mandatory to register under RERA. And no real estate agents are allowed to purchase or sell any of the property or land without getting the RERA registration number.
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 Real Estate Agent Registration is compulsory.
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 get any benefit from the government. Here are some of the important facts of RERA are mentioned below:
As per the RERA Act, Registering is mandatory for Developer, Builder and Agents
- Registration of project under RERA is important, in the case of its absence builder stands to lose the project
- Registration of project under RERA is important so Developer/Builder and Agents can promote the property
- Each and every advertisement of the project requires RERA registration number of the project
- It is legal proof for the real estate agent to promote and to sell any project or property
- It will create your work an authorized one
- It will increase the transparency of your work
- Gains trust and confidence among buyers.
- 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 mentioned below:
Documents Required for RERA Agent Registration
Some documents are needed while filling the registration form. You can see a list of required documents which is mentioned below
- Authenticated copy PAN CARD of the applicant
- Authenticated copy Identity card of the applicant
- Photograph of the applicant
- In case of partnership/company etc, brief details of enterprise have to be mentioned
- Authenticate copy of the letterhead
- Address proof of the place of residence and business.
RERA Registration Fees
The applicant or the company who is applying for RERA registration has to pay fees for Agent Registration and Project Registration. Actually, RERA Registration fees are completely dependent on the state and it may get differ from each State as every state holds its own RERA rules and regulations. You have to pay the fee after the submission of your form and it can be done online.
The Government fee for real estate agents to register under 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 through DD.
The validity of RERA Real Estate Agent License
After obtaining the real estate agent RERA license, 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 which every agent should be aware of:
- To ensure that the real estate property which needs RERA registration has been registered with respective State RERA
- To ensure all the papers or documents or information required in the deal has been given to allottee
- Don’t give any false promise or misleading commitment
- Don’t involve in any kind of malpractice
If any real estate agent fails to register under 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 provision for cancellation of RERA registration and imprisonment.