Understanding the RERA Act: Are Brokers and Real Estate Agents Regulated?
Ever wondered whether the broker showing you that 'perfect flat or house' is actually regulated by law, or just operating in a grey zone? The answer lies in the Real Estate (Regulation and Development) Act, 2016. The Act lays out clear regulatory obligations on real estate agents dealing in property transactions linked to registered projects, according to official RERA documentation and state authority rules.
As per the ministry of housing and urban affairs, 'Section 9 of the Act provides that real estate agents who engage in selling real estate projects registered under the Act have to register themselves with the Authority.' The document further notes that 'the mechanism for registration, the fees payable, the period of registration, subsequent renewal, etc., are matters to be detailed vide the Rules.' The RERA FAQ further explains that 'Section 10 of the Act provides for detailed functions and duties of real estate agents,' laying down compliance requirements for those operating in the sector.
According to the authority, a 'Real estate agent' is any person who negotiates or acts on behalf of one person in a transaction of transfer of his plot, apartment, or building by way of sale with another person and receives remuneration or fees or any other charges for his services, whether as commission or otherwise. The MahaRERA website also clarifies that the definition 'includes property dealers, brokers, middlemen by whatever name called,' expanding the scope of regulatory coverage.
### What does Section 9 say?
Section 9 of the RERA Act states that no real estate agent can facilitate the sale or purchase of any plot, apartment, or building in a registered real estate project without obtaining registration from the respective state's RERA authority.
### Grant or rejection of registration
The Authority shall process applications within the prescribed time and procedure after verifying the fulfillment of all conditions. It may grant a single registration to a real estate agent for the entire State or Union Territory. It may reject an application if it does not comply with the Act, rules, or regulations, with recorded reasons in writing. However, no application shall be rejected without giving the applicant an opportunity of being heard. If no communication is received within the specified period, the agent is deemed to be registered. Once registered, the agent is issued a registration number which must be quoted in all transactions under the Act. The registration is valid for a prescribed period and is renewable on payment of fees. However, the Authority can suspend or revoke registration in case of violation of conditions or fraud, after giving the agent an opportunity of being heard.
Authorities maintain that the framework is designed to bring transparency and accountability to real estate transactions by ensuring that intermediaries are formally registered and regulated.
