Rera registration of agents
The real estate industry is one of the fastest expanding sectors in India. With the growth comes the need for regulation to protect the interests of both buyers and sellers. The introduction of the Real Estate (Regulation and Development) Act, 2016 (RERA) has brought about significant changes in the real estate sector. Among others, one important regulation is the mandate for all real estate agents to obtain RERA registration. In this blog post, we will delve into the importance of RERA registration for real estate agents and its benefits, and how IndiaFilings can assist you in obtaining RERA registration.
Definition of RERA agent registration in India
Under the Real Estate (Regulation and Development) Act (RERA) of 2016, brokers and agents in the Indian real estate industry are required to register with the regulatory authority to ensure accountability and professionalism in the sector. The law defines a broker as any person who negotiates or acts on behalf of one person in a transaction involving the sale or transfer of a plot, apartment, or building to another person and receives fees or charges for their services. Registration is mandatory for brokers to facilitate any real estate transactions, and agents must register themselves with the concerned state-level regulatory authority. After registration, agents are given a registration number that is valid for five years and will need renewal thereafter. Non-registration or false representation is punishable with a penalty of Rs 10,000 per day of default, which may cumulatively extend up to five percent of the cost of the property. Registration procedures may differ from state to state, and legal advice is recommended to avoid any hindrance in the process.
Importance of RERA agent registration in real estate industry
RERA agent registration has become vital in India’s Real Estate industry, bringing about transparency and accountability in the sector. Here are some of the reasons why RERA agent registration is important:
1. Increased Credibility and Professionalism: RERA registration allows real estate agents to showcase their credibility and professionalism, earning trust from investors and homebuyers.
2. Access to RERA-Approved Projects: With RERA registration, agents have access to RERA-approved projects, making it easier for them to deal with properties legally under RERA.
3. Legal Compliance: Non-registration or false representation can lead to substantial penalties for the real estate agent. RERA registration makes sure that agents adhere to state government regulations.
4. Exemptions for RERA Registration: While certain exemptions exist for RERA registration, it is essential to have the registration to become a law-abiding and responsible real estate agent.
5. Facilitation of Transactions: RERA registration is required for real estate agents to facilitate any transactions, adding a layer of security and trust for investors and homebuyers.
In conclusion, RERA agent registration brings about credibility and legal compliance in India’s real estate industry, making it a crucial step for all real estate agents.
II. RERA Rules for Agent Registration
State government regulations for RERA agent registration
The Governments are responsible for implementing RERA and establishing the Real Estate Regulatory Authority to regulate and promote the real estate sector within their jurisdiction. The main objective of RERA agent registration is to facilitate the growth and promotion of a transparent, healthy, and efficient real estate sector while protecting the interests of owners, promoters, and real estate agents. The State Governments have been given the power to issue rules and regulations related to RERA agent registration, which mandates that agents register formally under the RERA Act before facilitating any sale or purchase of any plot, apartment, or building. Moreover, only registered agents are allowed to facilitate sale and purchase of real estate properties registered under the RERA Act. To obtain RERA agent registration, the agents must apply in Form G along with the required documents, such as particulars of registration, authenticated copy of the address proof of the place of residence and business, and other information specified by the Authority. Any real estate agent failing to obtain registration under RERA may have to face legal issues, and penalties may range from Rs 10,000 per day up to 5% of the cost of the plot or building, in case of any default.
Exemptions for RERA registration
According to the Real Estate Regulatory Authority Act in India, only real estate projects for which completion certificates have not yet been given as of May 1, 2017, need to be registered under RERA. However, there are certain exemptions to this rule:
1. If the area of land to be developed does not exceed 500 square metres or the number of units to be constructed does not exceed eight inclusive of all phases.
2. When a promoter receives a completion certificate for a real estate project before the Act takes effect.
3. Where the total area of land to be developed is less than 500 square metres and the total number of flats to be developed is less than 8, including all phases.
4. When a real estate project is undertaken for the purpose of renovation, repair or redevelopment and does not involve the marketing, advertising or sale of any unit, plot, or building.
5. Any real estate project that is not within the Planning Area’s boundaries.
It is important to note that real estate agents who are engaged in the sale or purchase of any plot, apartment or building in a project that is registered under RERA must obtain registration under Section 9 of the Act. However, those who facilitate only the lease/let out of properties are not required to get registration.
Penalties for non-registration or false representation
According to the Real Estate (Regulatory and Development) Act of India, RERA registration is mandatory for promoters engaging in real estate projects. Non-compliance with the Act may result in hefty penalties, imprisonment, or both. Additionally, promoters who make false representations face penalties as well. The penalties for non-compliance are categorized into various types, including penalties for failing to register the project, failing to comply with RERA directives, or violating any of the Authority’s instructions.
Penalties for non-registration or false representation can cost up to 10% of the projected cost of the real estate project, depending on the violation. The promoter can also face imprisonment for up to three years or both in some cases. The Act also prescribes a penalty of up to 5% of the project’s projected cost for each day that the promoter fails to comply with or violates RERA directives or instructions.
It is essential for promoters to comply with the registration process and accurately disclose project information to avoid penalties. Additionally, the penalty for false information or misrepresentation can cost up to 5% of the project’s projected cost. Complying with RERA will not only save promoters from potential penalties and imprisonment but also promote transparency, legal validity, and consumer confidence in the real estate industry.
III. Benefits of RERA Registration for Agents
Credibility and professionalism
R agent registration enhances credibility and professionalism in the real estate industry. It is important for a real estate agent to have a RERA registration as it builds trust with clients and establishes a transparent platform. With a RERA registration, clients are ensured that they are dealing with a credible agent who has been registered with the government. This showcases that the agent follows professional standards and is committed to providing quality service. Failure to obtain RERA registration may lead to the agent facing penalties or legal action. Moreover, RERA also provides access to a wider range of RERA-approved projects and properties. This gives the agent the opportunity to generate more business and reach a larger audience. In addition, with the help of private RERA consultancy and registration companies, the process for obtaining RERA registration becomes easier and hassle-free. Overall, RERA agent registration helps agents maintain high standards of professionalism, credibility, and accountability, thereby strengthening the real estate industry and boosting client trust.
Access to RERA-approved projects
One the major benefits of RERA registration for agents in India is access to RERA-approved projects. This registration allows agents to legally deal with properties under the regulatory authority. Buyers seeking properties can be assured of the credibility and professionalism of RERA-registered agents in handling their investments.
RERA has set state government regulations, exemptions, and penalties for non-registration and false representation. Agents wanting to obtain RERA registration need to complete an online process and submit appropriate documents. Private companies also offer RERA consultancy and registration services to help agents navigate the registration process.
In Telangana State alone, for example, RERA registration has extended up to 03.03.2023. Citizens have expressed concerns about the accessibility of RERA’s citizen services and complaint mechanisms. Nonetheless, access to RERA-approved projects is still achievable with the help of registered agents and updated information resources from RERA.
For real estate agents in India, RERA registration is highly recommended for the benefits it offers in credibility, professionalism, legality, and access to a wider market of projects. With adequate and updated RERA regulations and resources, agents can continue to operate within the rules and standards
Ability to legally deal with properties under RERA
Obaining RERA registration allows real estate agents in India to legally deal with properties under RERA. This means that they can facilitate the sale or purchase of real estate properties in a transparent, fair, and ethical manner, without violating any laws or regulations. It also means that they are liable for any flaws or misconduct in the business and can be prosecuted accordingly. The registration certificate is valid for five years, and renewal needs to be done at least 60 days prior to expiry. The registration process involves submitting a written application to the relevant authority along with the prescribed fees and documentation, such as personal information, income tax returns, details of projects and advertisers, copies of letterheads and receipts, etc. Once the application is accepted, the authority will issue a registration number, which must be quoted in every sale facilitated by the agent. Adhering to the conditions and compliances laid out in the RERA Act and Rules is essential for maintaining the registration status and credibility among clients and customers.
IV. How to Obtain RERA Agent Registration
Process for obtaining RERA registration in India
To obtain RERA registration in India, real estate agents must follow a specific process outlined by the regulatory authority. Here are the steps involved:
1. Collect the necessary documents: Agents must submit documents such as proof of address, photographs, registration certificates of the business, etc., to apply for RERA registration.
2. Fill out the registration application: The RERA registration application form must be filled out and submitted on the RERA website. The form must include all the required information.
3. Pay the registration fee: After submitting the application, the agent must pay the prescribed registration fee.
4. Wait for approval: The RERA authority will scrutinize all the documents and verify the information provided by the agent. Once the information is verified, the agent will receive a registration certificate with a unique registration number.
5. Renew registration: Registration is valid for a period of 5 years from the date of issuance. Agents must renew their registration certificate before the expiry date to continue their work.
Following this process is crucial for real estate agents to establish their credibility and legally deal with properties under RERA. It also helps ensure transparency in the real estate sector, which is beneficial for both buyers and sellers.
Role of private companies in RERA consultancy and registration
Private companies have a significant role to play in providing RERA consultancy and registration services in India. These companies act as advisory bodies that assist real estate agents and promoters in getting registered with RERA. With their thorough understanding of the official rule book of RERA released by the government, they play a crucial role in guiding people related to the real estate sector in an organized manner. Apart from providing consulting and registration services, these companies also offer public forums and interactions, which prove beneficial for everyone involved.
One major advantage of availing the services of private companies in RERA consultancy and registration is that they can offer these services at a reasonable fee. They ensure that the registration process is carried out smoothly and efficiently, with minimum hassle for the real estate agents and promoters.
In addition, these companies provide access to valuable resources and tools such as project fee calculators, EMI calculators, RERA rules of every state, and updates related to RERA around the country. They also offer online real estate quizzes and synopses of decisions given by RERA Appellant Tribunals in India. Overall, private companies have a crucial role to play in the real estate industry to ensure transparency and professionalism in dealings related to RERA.
Common questions about RERA agent registration in India
After about the importance of RERA agent registration in India’s real estate industry, you may be wondering about some common questions related to this topic. Here are some frequently asked questions about RERA agent registration that can help clarify any doubts you may have:
1. Who needs to obtain a RERA registration?
All real estate agents involved in buying, selling, or offering investment in any plot, apartment, or building exceeding 500 sq. meters or having more than eight units must obtain RERA registration.
2. What are the benefits of obtaining a RERA registration?
By obtaining a RERA registration, agents can ensure transparency in the real estate projects, give assurance of the credibility of the builder, and provide all details necessary for decision making. Additionally, they can legally deal with properties under RERA and have access to RERA-approved projects.
3. What are the penalties for non-registration or false representation?
Agents who fail to obtain RERA registration or provide false representation can face a penalty of Rs 10,000 per day that can extend to 5% of the cost of the plot or building. In case of unfair trade practices, agents can be punished with one-year imprisonment or up to 5% of the property cost for non-compliance with the orders of REM.
4. How can I obtain a RERA registration?
To obtain RERA registration, applicants must submit an application to the State Real Estate Regulatory Authority along with the necessary documents and fees as prescribed by law. The authority can accept or reject the application within 30 days.
5. Are private companies involved in RERA consultancy and registration?
Yes, private companies can assist in RERA consultancy and registration. However, it is important to ensure that they are registered and regulated by the authority to maintain credibility and professionalism.
Overall, obtaining RERA registration for agents is crucial for the transparency and credibility of the real estate industry in India. For more information, consult the resources available on RERA regulations.
Resources for further information on RERA regulations
For looking for more information about RERA regulations in India, there are a variety of resources available. These resources can help individuals better understand RERA agent registration, the process for obtaining registration, and the regulations that govern the real estate industry in India.
Some helpful resources include:
1. The official website of the Real Estate Regulatory Authority, which provides detailed information on RERA regulations and procedures in India.
2. Consulting firms that specialize in RERA registration and compliance, such as Corpbiz and Home By We, can provide guidance to individuals seeking to obtain RERA registration.
3. Real estate agent associations, such as the National Association of Realtors India (NAR-India), can provide helpful resources and information on RERA regulations in India.
4. The Ministry of Housing and Urban Affairs in India provides information on RERA and its impact on the real estate industry in India.
5. Online forums and discussion boards can provide insights from industry professionals and peers who have gone through the RERA registration process.
By utilizing these resources, individuals can gain a better understanding of the RERA registration process and how it impacts the real estate industry in India. With this knowledge, they can take steps towards obtaining RERA registration and ensuring they are in compliance with all regulations.
VI. Final Key-notes
Final thoughts on the importance of RERA agent registration in India’s real estate industry
In conclusion, the importance of RERA agent registration in India’s real estate industry cannot be overstated. The inclusion of brokers under RERA has led to increased transparency and accountability in the sector, which in turn has boosted investor and home buyer confidence. Moving forward, it is important for brokers to comply with the regulations set forth by RERA in order to maintain their credibility and professionalism in the industry. The penalties for non-registration or false representation should serve as a warning to those who are considering ignoring the rules. However, it is important to note that there are exemptions for RERA registration, such as for brokers who solely deal in agricultural land. For those who do need to register, the process is straightforward, although it does require documentation and a fee. Private companies can play a role in assisting brokers with RERA consultancy and registration. Overall, by improving the standards and operations of real estate brokers in India, RERA has the potential to greatly benefit both buyers and sellers in the industry.
VII. Documents required for Rera registration of agents in India
1. Aadhar Card
2. PAN Card
3. Certificate of Incorporation (for private limited company or LLP)
4. Business address proof
5. Bank account details
6. Income Tax Return (ITR) of the last 3 years
7. Registration fee payment receipt
8. Passport-sized photographs of the agent
VIII. Advantages of Rera registration of agents in India:
1. Increased credibility and transparency in the real estate industry
2. Protection of homebuyers from fraudulent activities by unscrupulous agents
3. Higher accountability for real estate agents
4. Access to the Rera portal which makes it easier for agents to register and list their projects
IX. Disadvantages of Rera registration of agents in India:
1. Increased compliance requirements and expenses for agents
2. A lengthy registration process which may deter some agents from getting registered
3. The requirement to provide detailed information about past projects and transactions
X. Process of getting Rera registration of agents in India:
1. Visit the Rera website and fill out the registration form
2. Upload the necessary documents and pay the registration fee
3. Await verification and approval of the registration application which takes around 30 days
XI. Types of Rera registration of agents in India
1. Individual agent registration
2. Firm registration
3. Company registration
XII. Frequently Asked Questions about Rera registration of agents in India:
1. What is Rera registration for real estate agents in India?
Answer: Rera registration is mandatory for agents who deal with real estate projects in India.
2. Why is Rera registration required for real estate agents in India?
Answer: Rera registration is required to promote transparency and accountability in the real estate industry.
3. Who needs to register for Rera in India?
Answer: Individuals, firms, and companies that deal with real estate projects in India need to register for Rera.
4. When did the Rera Act come into force in India?
Answer: The Rera Act came into force on May 1, 2017.
5. What is the penalty for non-compliance with Rera registration requirements?
Answer: A penalty of up to 10% of the total project cost or imprisonment for up to three years can be imposed for non-compliance with Rera registration requirements.