Much has been written about the impact of RERA on builders and buyers. However, RERA has set some guidelines for real estate brokers as well. This is for the first time attempt has been made to regulate real estate brokers and brokerage firms. Real Estate industry has 100x more unscrupulous brokers than builders. A welcome move indeed.
Here are the key provisions for real estate agents in RERA:
- All real estate agents have to register with RERA authority as well as builders. Every builder has to disclose the name and other details of the authorized agents who are allowed to deal in particular projects of the developer.
- The real estate agent will be provided with a registration number by the regulator, which has to be quoted for each sale they make.
- The agents are required to maintain books of account, records and documents related to every transaction done by them.
- They are also restrained from making any false representation—whether written, orally or by visual representation. Many a times they mislead buyers by making false claims such as “project is more or less sold out” or “prices are going to increase soon” or “price is very attractive compare to last sales” etc etc. Now buyers can cross check these data on RERA website.
- The Act also provides for penalties and imprisonment for agents who violate any of its rules and regulation. Agents will have to pay a fine of Rs. 10,000 for violating any provisions of the Act, for each day the violation continues; or imprisonment of up to 1 year.
- Agents are required to share all the information and documents about the project with the buyers, which they are entitled to at the time of booking a property.
- The regulator will also maintain a list of the authorized agents on its website, along with details of projects that they can deal in.
- Agents who are found to be in violation of the rules, will get removed from this list.