How has Business Changed for Real Estate Agent under RERA Act?

RERA aims to protect home buyers by laying down rules for agents and estate brokers. With around 8 to 9 lakh agents in the country things had been unorganised and no regulation existed in this segment. With RERA act in effect, only registered brokers will be able to sell new property, the rest will play in resale market. Only fair and organised agents can sell projects and properties. Business will be fair with no false promises to any clients. And regular training and certification on RERA guidelines will have to be carried out by RERA registered agents.

Highlights of RERA act for Agents:

  1. Marketing unregistered projects will attract penalty and cancellation of licence
  2. Validity of registration of Agent’s licence is for 5 years.
  3. Agents will Undergo a certification course and take up refresher course every year.
  4. Agent is required to maintain the books of accounts, records, and documents separately for each real estate project.
  5. Penalty for unregistered broker selling registered project.
  6. Cheating on Title documents, litigation, false promise of amenities, will all come to an end.
  7. This will improve the overall transparency and accountability in the sector.

How will RERA registered Agents, impact the industry and home buyers?

  1. Home buyers’ trust is likely to increase and this could lead to an increase in sales for brokers and builders.
  2. Home buyer with help of agents can make an Informed purchase decision on property.
  3. Agent will Help home buyers chose a RERA-compliant developer
  4. They will be consultants to buyers. They will educate customers with Title deeds, land documents, building certification documents, buyers’ right and so on.

How can Developers and Agents team up to contribute to growth in real estate sector?

  1. ‘Pictures speak a thousand words’, projects can exhibit more site photos, videos & install CCTv cameras for home buyers to have a good view of the development
  2. After stage completion they can inform the agents and announce to probable buyers of timely & competent speed of construction.
  3. Websites can have building wise details of development, this will ensure bookings & investments.
  4. Brokers can be informed of the sold & unsold inventory status at all times to enable spot booking
  5. All amenities on the brochure can be supported by appropriate photos
  6. Builders can Proactively share  RERA certificates with Agent members
  7. By supporting customers even after the agents role is over. Like Client Support post sales.
  8. All Disclosures on website can be clearly understood by home buyers
  9. Inclusion of brokers details explicitly on RERA website of projects (to prove authenticity of broker)

In conclusion, yes business has changed and will change for Real Estate Agent under RERA Act. RERA rules for agents and estate brokers will safeguard the rights of home buyers. You will see fair and organised agents selling projects and properties. Business will be transparent and no false promises will be made to any clients. Market will start believing in the phrase ‘Pictures speak a thousand words’.  A lot of site photos, videos & CCTv cameras installations will be seen at sites. Faith and trust will be restored in the coming years.

What are the Rights of a Home Buyer in RERA act?

Real Estate Regulatory Authority (RERA) Act is aimed at protecting the interests of buyers in the real estate sector. First and foremost rights of a Home Buyer in RERA act is a mechanism for quick dispute redressal like conciliation forum. Right to compensation on issues like delay in project delivery, Occupation certificate, completion certificates. Grievances on matters of property pricing, quality of construction will be answered. Matters of title deeds and other land or building agreements will be solved. Benches and conciliation forums will solve disputes in an quick, efficient and transparent manner.

Benefits of RERA to Home Buyers

Delay in the projects can be addressed

Developers who default the delivery date will pay an interest rate of 2%
Possibility of imprisonment of up to three years.

Quarterly progress disclosure

Common area and amenities’ progress has to be updated quarterly on MahaRERA website
Every building has to produce its progress report on quarterly basis along with CA’s certificate on expenses incurred.

Selling by Carpet area

Selling of property can only be based on the carpet area. Built-up and super built-up areas are demolished. Earlier buyers would be misled by builders on the carpet area, super built-up area, they would receive. Simply because nobody measures these things, thereby builders would deceive the consumers.

Buyers Consent for any change in plans

Developers will have to acquire consent of two-thirds of the buyers in a project before changing project’s design or any other structure. Earlier the builder would change the plan any time without intimating the home buyers. Now this will be punishable or penalised by RERA act.

Responsible for any defect in the construction for 5 years

Quality of the construction has been a concern for many buyers. Structural defect that takes place to the property for up to five years from the date of handing over possession will have to be repaired by the developer. Builder will have to repair it within 30 days without further charge.

Use of your money on your project only

The developer will be required to transfer 70% of the money received from buyers to an escrow account. Post which, the money will be withdrawn as per the stage of the construction, that will be approved by engineers and chartered accountants of builders.

Conciliation forum for grievances to quickly solve disputes
CREDAI and NAREDCO are a part of conciliation bench in Mumbai and Pune. Disputes will be addressed quickly and amicably. RERA body is working on many such benches across major cities. This is a part of Alternate Dispute Resolution (ADR) mechanism.
Builders will need all clearances before selling
Builders and agents will have to register themselves with the RERA, disclose every detail about the project and will be able to sell projects only after the necessary clearances have been attained.

No more false promotions. What you see is what you will get
Advertisement will have to carry the RERA registration number
Honest pictures and on false commitments on amenities or look of the building

EXCERPTS:
Rights of a Home Buyer in RERA act is aimed at protecting the interests of home buyers and providing financial transparency, legal transparency, Commitment transparency, Administrative redressal is ensured in the new rule of RERA law. RERA registered projects have to abide by Quarterly progress disclosure, be responsible for any defect in the construction, use money of home buyers on that project only (Escrow account)
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