Er Kumar Naresh (ADMIN)

Traditionally, the real estate brokers have acted as the middlemen between home buyers and developers. They sell the property on behalf of the developers to sellers and earn a pre-determined commission. They are the people whom home buyers trust for guidance in real estate matters. However, there have been cases where brokers have breached the authenticity of the transaction and duped the home buyers in the process. At times, they either charged a hefty commission or vanished before completing the deal formalities. This happened because brokers were not required to be registered legally or fell under the purviewof any regulation. However, RERA has changed the ball game for real estate brokers/agents completely. As per the new norms, brokers – whether independent or agencies, have to register under RERA with state regulators mandatorily. If they don’t, then they are not allowed to participate in any real estate transaction. RERA has also laid down a code of conduct which brokers are expected to follow in trade practices. Moreover, they must also adhere to the following rules: Display their registration number at their offices/place of work, documents, and advertisements. Maintain chronicles and books of accounts of real estate projects being handled by them. Enrol for courses to become a certified broker and retain their license. RERA hopes that these norms will make the real estate brokers more professional in their dealings and accountable for their actions. This will also bring the much-needed transparency in the sector. Now, while the intentions of RERA are in the right place, it has not found complete acceptance among the real estate brokers for the following reasons: The guidelines are still ambiguous. Most real estate brokers do not understand the regulations and registration process. There are no training workshops yet to educate the brokers on RERA. The registration fee and penalty fee for non-compliance are high, especially for brokers with a small value of transactions or limited income. There is no safety guard for brokers who are cheated by the builders. Several states and builders have not yet complied with RERA, making it difficult for registered brokers to sell those properties. Hence, they are losing their income. It is a fact that RERA favours home buyers, but it does understand the concerns of real estate brokers. Hence, a Central Advisory Council has been formed with representatives from various stakeholders from the real estate sector, including representatives from the broker community. Through this council, brokers can state their grievances and give constructive feedback. Every new change has its ups and downs. It takes time to settle down. Same is the case with RERA. Hopefully, RERA will also understand the problems faced by brokers and do something about it. Till then, it is the need of the hour that real estate brokers extend their full co-operation to RERA.  For regulare upadtes about RERA , signup FREE on BrokersADDA.com.  

According to you, what is the right time to invest in market? Is it the time when the market is touching new highs and everybody else is investing? Have you ever been able to get great returns by investing that way? Obviously, not. Whether it is investing in equities or real estate market, almost every potential investor is making the mistake to enter the market when the graphs are on the peak and are on the verge of crash at any moment.  Well, if you really want to get the understanding of the market and understand the right time to invest and withdraw, you should be able to understand the trends that are contributing considerably in changing the future of the sector. Here we are talking about the real estate sector. Let us check out what trends have been influencing the real estate sector in India and how you should make your investment decisions in 2018. Regulatory reforms Let’s admit, real estate sector in India has been an unorganized one always. It is due to the recent changes and regulatory reforms taking place that the perspective of the buyer has changed. Real Estate Regulatory Act (RERA) implemented along with Goods & Services Tax (GST) has given the direction to the real estate sector in a substantial way. Fly-by-night operators cannot survive anymore. Only the dedicated players will be able to get through the deal. More supply and less consumption is equal to buyers’ market According to reports, there is huge inventory of approx 1.8 lakhs in Mumbai Metropolitan Region and around 2 lakh units are yet to be sold in National Capital Region. This scenario of more supply and less consumption has led to fall in prices of property almost all over the country. This has turned out to be advantageous for investors. However, the situation will definitely not continue for long. So if you are seriously planning to invest, it is the time to play around with deals.  High liquidity and lesser home loan rates It has been noticed that home loan interest rates have been down from 9.5 percent per annum to 8.4- 8.5 percent for the past one and a half years. The RBI has made such changes due to the prevailing high liquidity in banking system. Both the factors combining together have created the favorable environment for the buyers. As well as if we compare the rental yields of around 5-6 percent with home loan interest rate of 8.3 percent, consumers prefer to buy instead of giving rents.  The regulatory reforms such as GST and RERA in the system have built the trust in the minds of the consumers. They are now able to invest fearlessly in the market. This enormous change along with the decreasing price trend is attracting interest of global investor fraternity. Fund from Canada, Singapore and US, is pouring in. As well as developing countries like Japan and China are also planning to invest in the sector.  All this proves that finally the real estate sector in India is moving towards the right direction and property buyers In India stand a great chance to negotiate great deals.