The Rise of Unregistered Real Estate Agents in Maharashtra: A Threat to Homebuyers
Despite MahaRERA's efforts, unregistered real estate agents continue to flourish, posing a significant risk to homebuyers in Maharashtra.
MahareraReal Estate AgentsUnregistered AgentsHomebuyersMaharashtraReal Estate MaharashtraAug 27, 2024
There are 13,370 agents registered with MahaRERA who are trained and aware of all the details of the projects. However, thousands of unregistered or illegal agents often lure unsuspecting homebuyers with promises of lucrative deals and quick transactions, only to trap them in fraudulent schemes or substandard properties.
The lack of accountability for these unregistered agents leaves homebuyers vulnerable to financial losses and legal complications. When contacted, an official from MahaRERA said, “The developers need to come forward and report about such unregistered agents. If they file a complaint, MahaRERA will definitely take a suitable action against the agents.”
President of National Real Estate Development Council (NAREDCO), Maharashtra, Prashant Sharma said, “The presence of unregistered agents in the real estate market is a matter of serious concern, and it undermines the integrity of the sector. However, the persistence of unregistered agents highlights the need for more stringent enforcement and greater awareness among consumers.
NAREDCO is committed to educating the public about the risks of dealing with unregistered agents and encouraging them to only work with those who are registered and well-informed about the projects they are promoting.
To combat this growing menace, stricter enforcement, increased public awareness, and stronger collaboration between MahaRERA and local authorities are essential. Homebuyers are urged to verify the credentials of agents through the MahaRERA portal to safeguard their interests.
Director of Mumbai Realtors Pvt Ltd, Dhiraj Mandal said, “MahaRERA has made it mandatory for only those agents who deal in primary sales (under-construction projects) that are registered with the Authority to register and obtain the Certificate of Competency (CoC) examination so that they are well versed with the nuances of dealing in under-construction projects.
We also request the Authority to conduct the exam monthly which is currently being conducted every 4/6 months. The MahaRERA should also make it compulsory for the sales staff of the developer as also large mandate agencies to take the CoC, so that the entire service industry of the broking business becomes professional.”
Co-Founder of PropFina, Nitin Singhal said, “Unregistered agents continue to operate in the primary market due to several factors. Many agents, especially in smaller towns, lack awareness of the regulations or the penalties for non-compliance.
Enforcement by MahaRERA is challenging due to the large number of agents and limited resources. Some developers may still engage unregistered agents to expedite sales, prioritizing speed over compliance.
Additionally, the informal nature of the real estate market allows unregistered agents to thrive on word-of-mouth referrals. The cost and complexity of the registration process can deter smaller agents from registering, and a lack of consumer awareness about MahaRERA's importance enables unregistered agents to operate with minimal scrutiny.
Stronger enforcement, better education, and simplifying registration could help address these issues.”
Frequently Asked Questions
What is MahaRERA?
MahaRERA is the Maharashtra Real Estate Regulatory Authority, established to regulate and promote transparency in the real estate sector.
Why are unregistered real estate agents a threat to homebuyers?
Unregistered real estate agents can lure unsuspecting homebuyers with promises of lucrative deals and quick transactions, only to trap them in fraudulent schemes or substandard properties.
How can homebuyers verify the credentials of agents?
Homebuyers can verify the credentials of agents through the MahaRERA portal.
What is the Certificate of Competency (CoC) examination?
The CoC examination is a mandatory exam for agents who deal in primary sales (under-construction projects) that are registered with MahaRERA.
What can be done to combat the menace of unregistered real estate agents?
Stricter enforcement, increased public awareness, and stronger collaboration between MahaRERA and local authorities are essential to combat the menace of unregistered real estate agents.
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