5. Registration Requirements for Real Estate Agents under RERA
Introduction
The Real Estate (Regulation and Development) Act, 2016 extends its regulatory framework beyond promoters to include real estate agents, ensuring accountability at all levels of property transactions.
The objective is to prevent misrepresentation and ensure that intermediaries operate within a regulated framework.
Legal Framework
Under RERA, no real estate agent can facilitate the sale or purchase of properties in a registered project without obtaining registration from the authority.
This applies to all intermediaries involved in real estate transactions.
Applicability
The requirement applies broadly to:
- Property brokers
- Channel partners
- Real estate consultants
- Intermediaries facilitating transactions
Registration Requirements
To obtain registration, agents must submit necessary documents and details to the authority.
These include:
- PAN card
- Address proof
- Business registration details
- Photograph and contact information
Validity and Renewal
Registration is typically granted for a period of five years, after which it must be renewed.
Failure to renew may result in loss of registration.
Obligations of Agents
Registered agents are required to comply with certain responsibilities to ensure transparency.
These include:
- Maintaining proper records of transactions
- Avoiding misleading advertisements
- Assisting buyers and promoters in documentation
Agents may be held liable for misrepresentation, even if based on information provided by the promoter.
Penalties for Non-Compliance
Non-compliance with registration requirements can lead to significant penalties.
These include:
- Penalty up to ₹10,000 per day
- Suspension or cancellation of registration
CABTA Insights
- Agent compliance is often overlooked but strictly enforceable
- Intermediaries face high risk of misrepresentation liability
- Proper documentation safeguards agents from disputes
- Registered agents gain higher credibility and trust in the market
