The real estate industry was highly unorganized and unregulated with around 10 lakh brokers in India. To cater to this issue government introduced RERA. The real Estate (Regulation and Development) Act (RERA) came into force on June 1st, 2017 in Rajasthan. It was the 3rd state which implemented RERA after Maharashtra and MP. Under RERA, the real estate agents need to register themselves for facilitating transactions.
In this article, we have discussed about RERA, RERA registration for agents in Rajasthan, its validity and registration fees, and other key details.
On May 1st, 2016, The Real Estate (Regulation and Development) Act, 2016 was enforced in India. In 2017, The Rajasthan Real Estate (Regulation and Development) Rules, 2017 were notified and the Rajasthan Real Estate Regulatory Authority was established in 2019. Rajasthan government has also constituted Real Estate Appellate Tribunal. The Rajasthan government was one of the few states to implement these laws. This initiative encourages the growth of the real estate industry. It promotes a healthy and transparent real estate sector.
One of the most important rules under the 2016 Act was that all the real estate agents have to register under this act. The real estate agents can’t facilitate the sale of any plot or apartment without registration.
If the real estate agent does not register or fails to register, he has to pay a penalty of Rs. 10,000 for every day during which the default continues which may cumulatively extend to 5% of the cost of the plot or apartment.
Who is a real estate agent?
A real estate agent is someone who acts as a negotiator or acts on the behalf of a person who is either selling or buying a plot, building, or apartment in a real estate project. He receives remuneration, commission, or fees for his service. He introduces prospective buyers and sellers for the sale or purchase of the property. They are also called property dealers and brokers.
Benefits of RERA registration for agents in Rajasthan
Under RERA, the real estate property has to be registered. Some plots and apartments are exempted from RERA registration like land not exceeding 500 sq. meters, the number of the apartment does not exceed 8, and the renovation or repair does not include marketing or advertising. RERA registration is also exempted when the promoters have received a completion certificate before the commencement of the Act. RERA Registration helps to establish a credible relationship with buyers and sellers. Following are the advantages of RERA Registration for the agent in Rajasthan-
It ensures transparency in the whole procedure.
The registration helps to maintain the trust and assurance of the builder.
The Registered agents are aware of the details of the project, this helps the buyer to make the current decision.
All the complaints are entertained directly by the registered agents under RERA.
RERA registration gives complete information about the builder.
Validity of registration certificate
The registration of real estate agents is valid for 5 years. The registration can be renewed at the end of the expiry. The Authority can revoke the registration if it finds that the registration has been obtained through misrepresentation or fraud.
How to register real estate agents in Rajasthan?
How to register real estate project with the Regulatory Authority?
Section 4 of the 2016 Act states the details to be provided by the promoters to the authorities for the registration. Additional information is furnished under Rule 3 of the Rajasthan Real Estate (Regulation and Development) Rules, 2017. The application for registration has to be filed in Form- A along with the Declaration in Form-B. The fees are prescribed in rule 3(3).
Documents required for RERA registration for agents in Rajasthan
A brief description of the enterprise including its name, registered address of the enterprise, and type of enterprise.
The particulars of registration.
Photograph of the real estate agent or photograph of the partners, directors, etc.
PAN card and address proof of the business.
The agent will be liable for a penalty of Rs. 10,000/- per day in case of any default and it can be extended to 5% of the cost of the plot, apartment, or building under sections 9 and 10 of the RERA Act. In case the agent indulges in unfair trade practices, he shall be liable for 1-year imprisonment. Section 66 deals with violation of Appellate Tribunal orders, it states 1-year imprisonment or fine up to 10% of the cost of unit sold. Violation of order of RERA Authorities is dealt in section 65. If there is a breach in the terms of registration or the registration is obtained through fraud or misrepresentation, the RERA registration of agents will be canceled under section 9(7).
When can the projects be sold by agent having RERA Registration?
The project can be sold by agents having RERA registration if the real estate exceeds 500 sq. meters or if the number of apartments is more than 8.
The whole real estate industry is run by real estate agents. The government has laid down the RERA registration for agents for building trust in the industry. The increased regulatory framework will aid the real estate market. It will improve the accountability and transparency of the sector. After RERA was enforced, the home buyer’s trust in the system has increased, this has also lead to an increase in the sale of the real estate. Customers are now protected and purchasing properties with a lot more confidence. But it will take a lot of time to make the real estate market more attractive for the customers.
CS Urvashi Jain is an associate member of the Institute of Company Secretaries of India. Her expertise, inter-alia, is in regulatory approvals, licenses, registrations for any organization set up in India. She posse’s good exposure to compliance management system, legal due diligence, drafting and vetting of various legal agreements. She has good command in drafting manuals, blogs, guides, interpretations and providing opinions on the different core areas of companies act, intellectual properties and taxation.
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