Impact of the RERA on Real Estate Agents and Brokers in India

1.    Provisions of the RERA Affecting Real Estate Agents and Brokers
2.    Impact of the RERA on Real Estate Agents and Brokers
3.    Impact on Real Estate Agents and Brokers: Relevant Case Laws

4.    Closing Remark

Registration
The RERA Act requires real estate agents and brokers to register with their respective state's Real Estate Regulatory Authority (RERA). After they get a unique registration number before get into any real estate transaction.

Duties & Responsibilities
Agents and brokers are required by the Act to provide all essential data about the property, such as carpet area, construction duration, approval status, and so on. False representations or failing to give accurate information can result in fines or jail.

Commissions and Fees
The RERA Act has provisions to regulate commissions and fees charged by brokers and agents. It ensures that their remuneration is in proportion to the services provided and prevents the exploitation of buyers and developers.

Advertisements and Promotions
Real estate agents and brokers are required to strictly adhere to the guidelines for advertising and promoting properties. The Act prohibits misleading advertisements and mandates the inclusion of the unique RERA registration number in all marketing materials.

Complaints and Dispute Resolution
The RERA Act establishes Real Estate Appellate Tribunals and Adjudicating Officers to address complaints and resolve disputes. Agents and brokers may be liable for penalties or compensation if found guilty of any fraudulent or unfair practices.

Increased Accountability
The RERA Act has significantly enhanced the accountability of real estate agents and brokers. The mandatory registration process ensures that only qualified professionals engage in real estate transactions and provide accurate information to buyers.

Better Transparency
The Act's provisions promote transparency by mandating detailed disclosures about the property, its approvals, and any ongoing legal issues. Real estate agents and brokers are compelled to comply, removing ambiguity and enhancing consumer trust.

Professional Code of Conduct
With the introduction of the RERA Act, real estate agents and brokers are obligated to conform to the stipulated code of conduct. This ensures that they act in the best interest of buyers and developers, fostering professionalism and ethical practices.

Streamlined Dispute Resolution
The establishment of Real Estate Appellate Tribunals and Adjudicating Officers has provided an efficient platform for resolving disputes. This leads to faster resolution, reducing the burden on buyers, sellers, and agents.

M/S Angle Properties v. State of Maharashtra
In this case, the Maharashtra Real Estate Regulatory Authority (MahaRERA) directed an agent to refund the booking amount to a buyer due to the non-disclosure of the timeline for project completion. This emphasizes the importance of accurate information disclosure by agents to avoid legal consequences.

Colonel Vinod Awasthy v. United Housing
The Telangana State Real Estate Regulatory Authority (TSRERA) imposed a penalty on a broker for advertising unregistered projects. The case highlights the consequences of non-compliance with advertisement guidelines.