The Real Estate Regulation Act, 2016 (“RERA”) was brought into force with the following objectives:
- regulation and promotion of the real estate sector;
- ensure sale of real estate property in an efficient and transparent manner;
- protect consumer’s interests in the real estate sector;
- establish a speedy adjudication and dispute redressal mechanism; and
- establish the Appellate Tribunal
One of the most important interfacing in the real estate sector is held by the brokers or real estate agents today. They form a vital bridge between the concrete industry and the ‘dreams of happy homes’. It is no news that flat buyers and brokers are not friends. The journey of making the one in a million flat into a home is tedious job for both buyers and brokers. There are innumerable cases where the consumers have, legally or not portrayed their dissatisfaction towards the services of their agents.
RERA seeks to smoothen out these kinks by regulating the industry of real estate agents. Chapter 2 of the RERA is partially dedicated to the registration of real estate agents with the appropriate authorities.
Who is a Real Estate Agent:
Section 2 (zm) of RERA defines real estate agents. According to the definition, a "real estate agent" means any person, who negotiates or represents other persons for transfer of a real estate property by way of sale to another person and receives remuneration or fees or any other charges for his services whether as commission. A real estate agent is also a person who introduces, through any medium, prospective buyers and sellers to each other for negotiation for sale or purchase of real estate property, as the case may be, and includes property dealers, brokers, middlemen etc.
Requirement of registration:
To achieve the objective of regulating the real estate sector and to standardize this sector making it more transparent, the Act and the Rules made thereunder require for the real estate agents to obtain a registration certificate from the Real Estate Regulating Authority. RERA also says that the real estate agents will also be liable for any flaws in the project and can be prosecuted for any misconduct in the business. It is Section 9 (1) of RERA that mandates the registration. Section 9 prohibits an agent to operate his business without such registration.
Procedure for registration:
Rule 8 of the National Capital Territory of Delhi Real Estate (Regulation and Development) (General) Rules, 2016 (“Rules”) read with Section 9 (2) of RERA state that every real estate agent, required to register, shall make an application in writing to the Authority established under RERA Form ‘G’, in triplicate, until the application procedure is made web based.
Documents for registration:
- Name, registered address, type of enterprise (proprietorship, societies, partnership, company etc.);
- In case of a Real Estate Agency the particulars of incorporation including the bye-laws, MoA , AoA,
- Name, Address, contact details and photograph of the real estate agent or director or partners
- the authenticated copy of the PAN card of the real estate agent;
- the authenticated copy of the address proof of the place of business.
The registration certificate is valid for 5 years from the date of receipt. It can be revoked before the expiry of this period in case the agent breaches the RER Act or Rules.
According to Section 9 (4) of the Act read with Rule 9 of the Rules, if the Authority does not grant or reject the registration certificate within 30 days, hereon the completion of the period specified under sub-section (3), if the applicant does not receive any communication about the deficiencies in his application or the rejection of his application, he shall be deemed to have been registered.
Conditions for RC:
The following conditions/ compliances are to be adhered to by the real estate agents after attaining the registration certificate:
- Not to facilitate sale of unregistered property;
- Due maintenance of books of accounts records and documents as provided under rule 14;
- Avoid use of any unfair trade practices as enumerated under the rules assistance to enable the allottee and promoter to exercise their respective rights and fulfil their respective obligations at the time of booking and sale of any plot, apartment or building, as the case may be; and
- Generally adhere by the provisions of the Act and the Rules.
These conditions are also mentioned as conditions in the registration certificate as well as Section 10 of RERA.