RERA – How it goes on to affect Real Estate Agents.
The second largest job provider, Real Estate in India, is expected to boom further, about 30% in the next decade. While the real estate sector isn’t something new that had gained the attention, it is only now that that India seeks to put the much needed regulatory mechanisms. The introduction of RERA or Real Estate Regulatory Act has been a much welcome move from the government and buyers can now be more at peace with their investments.
RERA also levies some fundamental changes to the role and responsibilities of a real estate agent/broker. Covered under Sections 9 and 10 of the Act, it offers real estate agent a formal and legal recognition, while defining their responsibilities, duties, power in the property buying/selling process. According to the provisions of RERA, every real estate agent/broker needs to register himself/herself to be a part of any kind of transaction.
In India, the property broker segment is believed to be a US$ 4 billion industry, with more than 9,00,000 brokers/agents. Traditionally, and until May 1st, 2017, there was however nothing that registered their job/business profile. However, a lot many issues with brokerage are still left unaddressed. If one goes on through the RERA Act, it looks like the regulations licensing is only limited to agents associated with promoters or are a part of the sale process for new projects. To sum it up, the scope of RERA for real estate agents needs to be widened, especially with respect to rent, lease and resale transactions.