Registration and function of real estate agents under RERA.(Section 9 and Section 10 of Rera Act, 2016

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INTRODUCTION

The brokerage system occupies a prominent role and is an indispensable piece within the real estate sector. Simply stated, a broker is a middle-person who connects buyers and sellers of property and generally is compensated by a commision from the transaction amount. This profession is a lucrative one as it is easily accessible with  no specific requirement or criterion to fulfill, no experience requirements to be met and  no particular guidelines to be followed, thereby diminishing the standard of accountability or transparency. For this reason, there are thousands and thousands of non-professional real estate agents and brokers in the market today.  Appraised of this weakness, lack of accountability and transparency, the central government brought this profession within the ambit of the RERA Act. , By passing the Act, real estate agents are required to be registered with the Real Estate Regulatory Authority and are bound by the rules and regulations emanating from the said authority. 

As per the RERA Act of 2016, only a registered agent can work in the real estate market which means that only those real estate agents who are registered under the RERA Act can facilitate the sale and purchase of  real estate properties as  per section 3 of the RERA Act. Without registration with the RERA, a real estate agent cannot facilitate the sale or purchase of or act on behalf of any person to facilitate the sale or purchase of any real estate property.

Section 2 (zm) of the RERA Act defines a ‘real estate agent’ as anyone who acts on behalf of any other person in any kind of transaction be it buying or selling or hiring of real estate like a plot, apartment, buildings etc. And such a person who acts on behalf of others receives some kind of fees or remuneration for his/her acts. These categories of people also include those who not only help others in buying and selling of properties but also involve into making prospective buyers and sellers meet each other and negotiate. These people are popularly called as either property dealers, brokers, middlemen etc.

REGISTRATION OF REAL ESTATE AGENT UNDER RERA

Section 9 of the RERA Act relates to the registration of the real estate agents. According to section 9 of the RERA Act, it is important for any real estate agent to register itself with the RERA, without which he/she is not allowed to indulge in any kind of action related to facilitating prospective buyers and sellers into selling or purchasing their any kind of real estate property whether it is a plot or a building or an apartment. Further, for obtaining such registration, it is also required by the agent to apply for such registration with RERA by submitting a certain sum of fees and the required documents within a given time period. The authorities may grant registration  on being duly satisfied that the conditions laid down by the RERA Act have been fulfilled. The authorities may grant a single registration to a real estate agent applicant for the entire State or the Union Territory or it may even reject any such application on the grounds of non-fulfilment of any rules as laid down under the RERA Act. But for any such rejection, the authorities are required to record the reasons and such rejection can also not be done without giving a due opportunity to the applicant of being properly heard. According to the rules of the RERA Act, if any such applicant’s application is not rejected within a period of 30 days, he or she is assumed to have been registered with the authority. 

The real estate agent is required to note his/her registration number on any transaction assisted. It is also given under the RERA Act that any registration that has once been granted to any real estate agent as per the provisions of the act, such a registration shall remain valid for the specific given time duration and shall be renewable with the submission of required fees after specific time period as is prescribed by the rules.

It is also provided that any real estate agent who commits any kind of breach of any condition or rule that has been laid down under the act may have his/her license revoked by  the Authority. In case the authority believes that such registration has been acquired by anyone through means of misrepresentation or fraud, the authority has the power to revoke any such registration of any such real estate agent or may suspend any such real estate agent for a specific time period. This power of the authority also comes with the clause that the real estate agent under the question must be given an opportunity of being fairly heard before any such action is taken against him or her.

Registration procedure

The provisions for registration of real estate agents in various state specific RERA Rules are similar in nature. These provisions are given under Section 8. Wherein the provisions include how the registration is to be made, when and how the registration should be granted to such agents, renewal process of the registration and revocation of registration on certain grounds. All these provisions are more or less similar in all the state specific RERA Rules. Except the fees requirements which are prescribed by each state differently.

A real estate agent is required to make an application to the RERA for registration in such a form or manner, within the given time period along with all the other such documents as are required and fees as may be prescribed in the respective State’s rules.

Also, at the time of registration with the RERA, the agent is required to produce  the following list of details and documents:

  1. Name, address, contact details and photograph of the real estate agent
  2. Authenticated copy of PAN card
  3. Brief details of his enterprise including name, registered address, types of enterprises
  4. Particulars of registration as  a proprietorship, society, partnership, company etc., including bye-laws, MOA, AOA etc.
  5. Any other information as  may be specified by the Act, rules or regulations made thereunder.

The authority is supposed to grant a single registration to a real estate agent for the entire state or Union Territory. And every registered real estate agent is then required to quote his registration number in every sale that is facilitated by him under the RERA Act. 

Given below is the link to the online portal where one can register himself or herself as a real estate agent with the Real Estate Regulation Authority:

https://www.rerafiling.com/agent-registration.php”.

FUNCTIONS OF REAL ESTATE AGENT UNDER RERA

Section 10 states that one of the primary duties of the real estate agent who is registered under the RERA Act, is that he or she should not in any way facilitate any kind of sale or purchase of any real estate property which is not registered under the RERA Act. It is also mentioned that such a registered real estate agent is required to maintain records or books of accounts as are prescribed under the act. And also that any such registered agent should not indulge in any unfair means of trade or unfair practices like making false representations regarding the quality of services either orally or in written or showcase any such kind of authority that he or she doesn’t have, or make any kind of false or misleading statements regarding the services. He is also not required to permit any publication of any advertisement that claims false promises of providing services which are not going to be there. Another function of the registered real estate agent is that he or she needs to help an allottee to possess such required documents and information related to the plot, apartment or building. And finally the registered real estate agent is supposed to discharge any other such functions as are required from time to time.

  1. REGISTRATION PROCESS UNDER DIFFERENT STATE RERA RULES

Different states have their own specific RERA Rules that are to be followed in that respective states. These state specific RERA Rules are more or less similar to that of the RERA Act of 2016. 

The provisions for registration of real estate agents in various state specific RERA Rules are similar in nature. These provisions are given under Section 8 and onwards of these rules (in most rules). Wherein the provisions include how the registration is to be made, when and how the registration should be granted to such agents, renewal process of the registration and revocation of registration on certain grounds. All these provisions are more or less similar in all the state specific RERA Rules. Except the fees requirements which are prescribed by each state differently, everything else in the procedure of real estate agent registration is same in all rules.

The provision consisting functions of the real estate agents are not there in the state specific RERA Rules. While there is only one provision that talks about functions in most of them which says other functions of the real estate agent.This other function of the real estate agents is that he or she is required to provide any such kind of support or assistance as required by the allottee and promoter in exercising their rights properly. And should also help them in fulfilment of their due obligations as well. 

Except these differences, the state specific RERA Rules are more or less same in nature and follows the same line of the central RERA Act, 2016.

  1. ONLINE PORTAL FOR REGISTRATION OF REAL ESTATE AGENTS

Given below is the link to the online portal where one can register himself or herself as a real estate agent with the Real Estate Regulation Authority:

https://www.rerafiling.com/agent-registration.php”.

Endnotes

  1. Section 2 (zm) (i), RERA Act, 2016.
  2.  Section 9 (1), RERA Act, 2016.
  3.  Section 9 (3), RERA Act, 2016.
  4.  Section 10, RERA Act 2016.
Aparajita Jha

Aparajita Jha

Author

Aparajita is a compendious and eloquent writer. She is a student of a prestigious National Law University and Judicial Academy, Assam. She loves reading books and writing on various legal issues. For any clarifications, feedback, and advice, you can reach her at aparajita@nluassam.ac.in

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