Agents/ property dealers/ brokers play a major role in the Real estate sector, they are the ones who help the homebuyers in choosing the right kind of builder. They are the middlemen between Builders and Homebuyers. As per the RERA Act 2016, it is mandatory for all the agents to be registered withReal Estate Agent RERA to work in the real estate sector, which means only registered agents can facilitate sale and purchase of real estate properties registered under section 3 of the act. Those not registered with RERA are not authorized to do any act as laid down in RERA Act.
The Section 2(zm) of the act defines “Real Estate Agent“–
“It means any person who negotiates or acts on behalf of one person in a transaction of transfer of his plot, apartment or building, as the case may be, in a real estate project, by way of sale, with another person or transfer of plot, apartment or building, as the case may be, of any other person to him and receives remuneration or fees or any other charges for his services whether as commission or otherwise and includes a person who introduces, through any medium, prospective buyers and sellers to each other for negotiation for sale or purchase of plot, apartment or building, as the case may be and includes property dealers, brokers, middlemen by whatever name called.”
The registration of an agent is mandatory under section 9 of the Act. The section states that –
“(1) No real estate agent can facilitate the sale/purchase of properties in real estate projects registered u/s 3 of the Act without obtaining registration under section 9.
(2) Every real estate agent shall make an application to the Authority for registration in such form, manner within such time and accompanied by such fee and documents as may be prescribed in respective State’ s rules. The Authority shall grant a single registration to the real estate agent for the entire State or Union territory.”
The Agent has to make an application under section 9(2) to the Real Estate Regulatory Authority for obtaining the registration certificate. The Application procedure differs from state to state according to their respective rules., but the mandatory documents to be submitted are
Plus any other information as may be specified by the Act, rules or regulation made thereunder.
Further, the functions of the Real estate agent are provided under section 10 of the Act-
“Every real estate agent registered u/s 9 shall:-
a) Not facilitate the sale or purchase of any plot, apartment or building, in a real estate project or part of it, being sold by the promoter in any planning area, which is not registered with the Authority,
b) maintain and preserve such books of account, records, and documents as may be prescribed,
c) not involve himself in any unfair trade practices,
d) facilitate the possession of all the information and documents, as the allottee, is entitled to, at the time of booking of any plot, apartment or building,
e) Discharge such other functions as may be prescribed.”
Author – CA Ramesh Agrawal (FCA & LLB) Partner Agrawal Gupta & Sahu from Delhi and can be contacted at firstname.lastname@example.org