Understanding RERA Norms for Realtors and Their Benefits for Home Seekers and Sellers
The Real Estate (Regulation and Development) Act, 2016, commonly known as RERA, was introduced by the Indian government to bring transparency, accountability, and order to the real estate sector.
ReraReal EstateHome BuyersSellersRealtorsReal EstateSep 15, 2024
RERA was created to protect people’s interests and encourage more investments by laying down clear rules for developers, agents, and everyone else involved in the business. A quick heads-up RERA only applies to new developments that are bought directly from builders or developers, meaning it doesn’t cover resale transactions in the secondary market. Also, smaller projects, like those with fewer than 8 units or on plots smaller than 500 square meters, are exempt from RERA regulations.
RERA isn’t just for developers; it also sets out specific rules that real estate agents, brokers, and consultants need to follow. These rules are all about making sure agents do what’s best for their clients and keep things transparent.
1. Registration of real estate agents (Section 9)
What this means If you’re a real estate agent, you have to be registered with your State’s RERA authority. This is non-negotiable if you want to be involved in selling or buying property that falls under RERA’s scope.
Why this matters This registration process ensures that only qualified and trustworthy agents can operate. It also helps the RERA authority keep track of who’s doing what, making agents more accountable. If an agent isn’t registered, they can’t legally handle any property transactions, which cut down on fraud.
2. Keeping detailed records (Section 10)
What this means Agents are required to keep thorough records of every transaction they’re involved in, including the properties they’ve dealt with, who was involved, and all the financial details. These records need to be available for review by the RERA authority if needed.
Why this matters By keeping detailed records, there’s a clear trail of everything an agent does, which can be a lifesaver if any disputes arise. It also discourages any shady practices, knowing that everything is documented.
3. Following a Code of Ethics (Section 10)
What this means Agents must stick to a code of conduct set by RERA, which includes being honest in their dealings, giving clients accurate information, and steering clear of any fraudulent activities.
Why this matters This code of conduct ensures that agents act with integrity and professionalism, which helps build trust with clients and keeps the real estate market healthy.
4. No Dealing with Unregistered Projects (Sections 9 & 10)
What this means Agents aren’t allowed to facilitate deals for projects that aren’t registered under RERA. They have to make sure that the properties they’re handling meet all RERA regulations.
Why this matters This rule helps protect homebuyers from ending up with properties that aren’t legally sound. It also ensures that buyers are investing in properties that meet the required standards. However, agents need to be aware of the exemptions under RERA, such as smaller projects, which don’t require registration.
Frequently Asked Questions
What is RERA and why was it introduced?
RERA stands for Real Estate (Regulation and Development) Act, 2016. It was introduced by the Indian government to bring transparency, accountability, and order to the real estate sector.
Does RERA apply to all real estate transactions?
No, RERA only applies to new developments that are bought directly from builders or developers. It doesn’t cover resale transactions in the secondary market.
What are the rules for real estate agents under RERA?
Real estate agents need to register with their State’s RERA authority, keep detailed records of transactions, follow a code of ethics, and not deal with unregistered projects.
Why is registration important for real estate agents?
Registration ensures that only qualified and trustworthy agents can operate, making them more accountable and reducing fraud.
What are the benefits of RERA for homebuyers?
RERA helps protect homebuyers from project delays, fraud, and stress. It also ensures that buyers are investing in properties that meet the required standards.
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