Definition, Registration & Functions of and Penalties for Brokers / Agents as per the Real Estate (Regulation and Development) Act 2016

RERA2016

About the law

An Act to establish the Real Estate Regulatory Authority for regulation and promotion of the real estate sector and to ensure sale of plot, apartment or building, as the case may be, or sale of real estate project, in an efficient and transparent manner and to protect the interest of consumers in the real estate sector and to establish an adjudicating mechanism for speedy dispute redressal and also to establish the Appellate Tribunal to hear appeals from the decisions, directions or orders of the Real Estate Regulatory Authority and the adjudicating officer and for matters connected therewith or incidental thereto.

Definition of Real Estate Brokers / Agents as per the new law

“Real Estate Agent” means any person, who negotiates or acts on behalf of one person in a transaction of transfer of his plot, apartment or building, as the case may be, in a real estate project, by way of sale, with another person or transfer of plot, apartment or building, as the case may be, of any other person to him and receives remuneration or fees or any other charges for his services whether as commission or otherwise and includes a person who introduces, through any medium, prospective buyers and sellers to each other for negotiation for sale or purchase of plot, apartment or building, as the case may be, and includes property dealers, brokers, middlemen by whatever name called.

You can download the full report here!

Registration of real estate agents (Section – 9)

(1) No real estate agent shall facilitate the sale or purchase of or act on behalf of any person to facilitate the sale or purchase of any plot, apartment or building, as the case may be, in a real estate project or part of it, being the part of the real estate project registered under section 3, being sold by the promoter in any planning area, without obtaining registration under this section.

(2) Every real estate agent shall make an application to the Authority for registration in such form, manner, within such time and accompanied by such fee and documents as may be prescribed.

(3) The Authority shall, within such period, in such manner and upon satisfying itself of the fulfillment of such conditions, as may be prescribed—

(a) grant a single registration to the real estate agent for the entire State of Union territory, as the case may be;

(b) reject the application for reasons to be recorded in writing, if such application does not conform to the provisions of the Act or the rules or regulations made thereunder:

Provided that no application shall be rejected unless the applicant has been given an opportunity of being heard in the matter.

(4) Whereon the completion of the period specified under sub-section (3), if the applicant does not receive any communication about the deficiencies in his application or the rejection of his application, he shall be deemed to have been registered.

(5) Every real estate agent who is registered as per the provisions of this Act or the rules and regulations made thereunder, shall be granted a registration number by the Authority, which shall be quoted by the real estate agent in every sale facilitated by him under this Act.

(6) Every registration shall be valid for such period as may be prescribed, and shall be renewable for a period in such manner and on payment of such fee as may be prescribed.

(7) Where any real estate agent who has been granted registration under this Act commits breach of any of the conditions thereof or any other terms and conditions specified under this Act or any rules or regulations made thereunder, or where the Authority is satisfied that such registration has been secured by the real estate agent through misrepresentation or fraud, the Authority may, without prejudice to any other provisions under this Act, revoke the registration or suspend the same for such period as it thinks fit:

Provided that no such revocation or suspension shall be made by the Authority unless an opportunity of being heard has been given to the real estate agent.

You can download the full report here!

Functions of real estate agents (Section – 10)

Every real estate agent registered under section 9 shall—

(a) not facilitate the sale or purchase of any plot, apartment or building, as the case may be, in a real estate project or part of it, being sold by the promoter in any planning area, which is not registered with the Authority;

(b) maintain and preserve such books of account, records and documents as may have prescribed;

(c) not involve himself in any unfair trade practices, namely: —

(i) the practice of making any statement, whether orally or in writing or by visible representation which—

(A) falsely represents that the services are of a particular standard or grade;

(B) represents that the promoter or himself has approval or affiliation which such promoter or himself does not have;

(C) makes a false or misleading representation concerning the services;

(ii) permitting the publication of any advertisement whether in any newspaper or otherwise of services that are not intended to be offered.

(d) facilitate the possession of all the information and documents, as the allottee, is entitled to, at the time of booking of any plot, apartment or building, as the case may be;

(e) discharge such other functions as may be prescribed.

You can download the full report here!

Penalties for Real Estate Brokers for non-comply

Penalty for non-registration and contravention under sections 9 and 10

If any real estate agent fails to comply with or contravenes the provisions of section 9 or section 10, he shall be liable to a penalty of ten thousand rupees (10,000) for every day during which such default continues, which may cumulatively extend up to five percent (5%) of the cost of plot, apartment or buildings, as the case may be, of the real estate project, for which the sale or purchase has been facilitated as determined by the Authority.

Penalty for failure to comply with orders of Authority by real estate agent

If any real estate agent, who fails to comply with, or contravenes any of the orders or directions of the Authority, he shall be liable to a penalty for everyday during which such default continues, which may cumulatively extend up to five percent (5%), of the estimated cost of plot, apartment or building, as the case may be, of the real estate project, for which the sale or purchase has been facilitated and as determined by the Authority.

Penalty for failure to comply with orders of Appellate Tribunal by

real estate agent

If any real estate agent, who fails to comply with, or contravenes any of the orders, decisions or directions of the Appellate Tribunal, he shall be punishable with imprisonment for a term which may extend up to one (1) year or with fine for every day during which such default continues, which may cumulatively extend up to ten per cent. of the estimated cost of plot, apartment or building, as the case may be, of the real estate project, for which the sale or purchase has been facilitated, or with both.

You can download the full report here!

Team BroEx

BroEx is the largest go-to application platform for Real Estate Brokers to connect with each other to network and collaborate with each other to fulfill their business requirements reliably and quickly.

20 Comments

  1. I am working as a Real State Agent in Udaipur, Rajasthan, which authority should I register with..?

    • Team BroEx

      The authorities are yet to come in existence. We just want to keep brokers like you informed about the changes and updated to the law.

  2. Thnx.

  3. Kindly keep posting where and which authority to be registered with.

    • Team BroEx

      We’ll surely keep you updated. Authorities are yet to be formed.

  4. I’m real Estate Counsaltantant work I’m Nashik Maharastra any req.please contact me my sell no 9403513938

  5. good for every broker pls translate in marathi.

  6. Sir what is the rule for a real estate broker to register his firm or company

    • Team BroEx

      You have to once authorities come into picture

  7. I want to register and dealing i maharashtra goa pl guide wgere toregistertks

    • Team BroEx

      Add your inventory / requirement and BroEx and see the power of 1,00,000+ network of brokers. If not downloaded the app yet, then download it from here: broex.in/d/Blog

  8. This is very good to see in India Truth is very Bitter

  9. I am from Pune Maharashtra
    please you have any requirement in Pune please call mi my what’s app no 8421643015

    • Team BroEx

      Add your inventory / requirement and BroEx and see the power of 1,00,000+ network of brokers. If not downloaded the app yet, then download it from here: broex.in/d/Blog

  10. I am working as a Real estate consultant in Pune. Any requirement please do call on 9823077673.

    Regards.

    Atul Prabhumirashi
    (Real estate consultant)

  11. Very good Gide.
    Pls,cont…
    Atharva
    Real estate Agency
    N.A. plot,Agriculture land & J.V. project.
    SPL-karjat,murbad,shahapur
    Mo-9209185101

  12. Really nice information you have curated over here. Cheers!

    • Team BroEx

      Thank you. Team BroEx

  13. This is Gandham Syam Babu from Rajahmundry. East Godavari, Andhra Pradesh. I am working as a General Manager in Construction company in RAJAMAHENDRAVARAM . Any Requirement Please do Call On – 9000 669 666, 9394 669 666

  14. I am unable to post my requirement for 300 square yard ground floor bungalow @ tirumalgiri Secunderabad. Plz advise.

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