From 1st May onwards, every real estate agent has to register his or her name as per the Real Estate (Regulation and Development) Act (RERA). The law was amended and brought into action by the government for the fair practice in the real estate industry.
Under the RERA Act, the real estate agents who have registered themselves, as per the government rules, will be able to transact with the clients in a legal way. The statistical study says that the brokerage industry in this real estate segment alone has a turnover of $4 billion every year and growing. The study also depicts that there are 500,000 – 900,000 brokers as an estimated number in India. In fact, the number can be more also. Before the amendment of the act, the brokerage segment in the real estate industry was unregulated and totally unorganized. The channels had no specific rulebook to charge brokerage fee to the respective clients.
The Real Estate Management Institute business head, Shubhika Bilkha depicts that the real estate market in India has advanced to a higher level where the brokers need to register themselves to ensure a better way to do business. The agents and the brokers need to be properly verified and then certified by the government act so that all the transactions should be legal and traceable.
The vigilance over the sale of real estate properties will be multiplied to a considerable extent. This will literally organize the sector and the government will be able to trace all the transactions done in an illicit way and the industry will become more transparent, says Bilkha.
The question that arises in the common people’s head is that how it will benefit the buyer and the industry. The brilliance of the act answers every question perfectly. After the proper validation, Brokers and Agents Registration in this industry are done, the sales of the properties will increase and more revenue will be generated. This is where both the builders and brokers will be benefitted. In fact, the transparency will also aid the buyers as they will find the right methods and rates to acquire a property in a legit way.
The chairman of Pharande Spaces, Anil Pharande said in this context that the amendment of this law will make the booming sector very much measurable and transparent. The market will become more attractive for the stakeholders as the illicit activities will be considerably reduced. The clients will now be harassed less and charged the fixed service charges. The customers will be more protected which will impart much confidence in their buying decision.
Sam Chopra, the chairman and founder of RE/MAX India, says that the agents are also significant stakeholders and the act will bring them in too. The excellent move to bring them under the new act will also increase the value of the industry. Chopra also said that the time for an honest approach has come where the businessmen who like to do transparent and professional business will enjoy the benefits more than the conventional channels. He added that the agents, after being included via the act, will play an important role in the industrial development. Their responsibility to reveal or disclose the information properly needed by the clients or lawful steps will be taken against them. When the customers will go for a RERA compliant builder or an agent, the market trend will soon be followed by the brokers.
As per Gaurav Kapur, MD, Golden Bricks, the hard-earned money of the home buyers will be absolutely protected as the cheating sphere will vanish with time. The customers will start to rely on the developers and brokers based on the act. The illicit activities like selling a withheld or disputed property without the conscience of the customer will be completely stopped as the legal actions will be taken against them.
Another very important development that will be enjoyed by the customers is that the agents will not be able to mention the amenities not present in the properties and lure the clients. The amenities and facilities should be mentioned properly in papers so that the clients can relate and buy properties. Proper information should be disclosed before buying a property. If any false information is provided by the developer or the buyer, they are eligible for penalty or term or both. RERA will act as a filter to strain out the unprofessional and illicit operators easily.
To everyone’s surprise, ‘RERA’ has been accepted by only 70 agents and brokers. In fact, the infrastructure of the states is not ready to comply with the implementation of the new act. The basic problem is that the small-time brokers and the freelancers will not be able to comply with the added expenses. The profit percentage will be reduced considerably for the brokers and they will not be able to afford the operation cost in this industry.
RERA also directs that the agents should maintain proper records and book of accounts for proper transaction details. In fact, all the papers should be documented or penalty will be charged. The success of the act will totally depend on the implementation and acceptance rate of in the states.