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By Published on January 3, 2019

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.

 

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