RERA Registration for Brokers

The terms - real estate agent, dealer, broker and consultant - all point to that a person who acts as the bridge between a builder and the buyer. A broker plays various roles in a typical transaction – Sales Manager, a registration agent and at times even an arbitrator between the builder and the buyer. For this article, we shall call this crucial person a Broker. A rough estimate is that there are 5,00,000 to 9,00,000 brokers in the market in India and most of them are in the unorganised and unregulated segment of this industry. The Real Estate industry itself is very crucial to the economy as it contributes to 11 % of the nation’s GDP, approximately Rs 11 lac crores, and the Broking business is approximately Rs. 18,000 crores per annum. Real Estate Industry is one of the drivers of economic growth in India. This crucial segment of the economy was totally unregulated. Home Buyers and brokers were left in the lurch by builders. Not anymore. With effect from 01/05/2017, Government of India has implemented RERA to regulate this market. Both Builders and Brokers are covered under this Act. In this article, we look at RERA registration for Brokers in detail.

RERA Registration Requirement under the Act

Sections 9 and 10 of the Act cover the role of a real estate Broker.

Though the Act specifies 31st July as the last date for registration by builders, brokers have not been given such lead time. Brokers need to register themselves immediately to continue to market projects registered under RERA, that they are handling. Brokers are mandated to show the facilities, aspects and amenities of the building project they are marketing and not to add anything additional or hide crucial information to confuse or mislead the buyer. Any deviation or default will attract penalty under RERA Act, including cancellation of the license.

Documents Required for RERA Registration

Application for RERA registration should be accompanied by the following documents:

Last three years Income Tax Return and if no IT returns are available, a declaration must be furnished.
Past experience in this field of business. A declaration for this should be furnished.
PAN & Aadhar cards
Photo
Address of place of business and
Blank receipt (sample) for the commission that will be billed.

Fee for RERA Registration

The fee for RERA registration varies from State to State. The following is the RERA registration fee for Maharashtra:

Rs 10,000 for individual or proprietorship firm.
Rs 1,00,000 for One Person Company, Partnership firm, Society, LLP, Private Limited Company, Public Limited Company.

Once the above application and fee is submitted, the authorities will issue RERA registration certificate within 30 days of application. The RERA registration certificate should be displayed at the place of business. All promotional materials such as advertisements and brochures of the broker must mention the RERA registration number.

Validity of RERA Registration

RERA registration for Brokers will be valid for 5 years from date of issue. The license can be renewed again for a period of 5 years, by submitting a renewal application 60 days prior to the expiry date.

Know more about RERA Registration for Brokers in Tamil Nadu.

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Frequently Asked Questions

Common questions about RERA Registration for Brokers.

A real estate broker acts as an intermediary between builders and buyers. They play various roles such as sales manager, registration agent, and sometimes even an arbitrator between the builder and the buyer. Their primary responsibility is to market and sell properties on behalf of builders.

According to the article, it is estimated that there are between 500,000 and 900,000 real estate brokers operating in the Indian market, with most of them being in the unorganized and unregulated segment of the industry.

RERA (Real Estate Regulatory Authority) was introduced by the Government of India on 1st May 2017 to regulate the real estate market. Prior to RERA, the real estate industry, including builders and brokers, was largely unregulated, leaving home buyers and brokers vulnerable to malpractices.

Yes, RERA registration is mandatory for real estate brokers to continue marketing and selling projects registered under RERA. Brokers need to register themselves immediately to comply with the Act.

The documents required for RERA registration for brokers include the last three years' income tax returns, a declaration of past experience in the business, PAN and Aadhaar cards, address of the place of business, and a sample blank receipt for commission.

In Maharashtra, the fee for RERA registration is Rs. 10,000 for individuals or proprietorship firms, and Rs. 1,00,000 for other entities like One Person Companies, Partnership firms, Societies, LLPs, Private Limited Companies, and Public Limited Companies.

The RERA registration for brokers is valid for 5 years from the date of issue. It can be renewed for another 5 years by submitting a renewal application 60 days prior to the expiry date.

If brokers deviate from their mandated responsibilities or provide misleading information to buyers, they can face penalties under the RERA Act, including cancellation of their license.

Yes, brokers must display their RERA registration number at their place of business and mention it in all promotional materials, such as advertisements and brochures.

RERA aims to protect the interests of home buyers by regulating the real estate industry, including builders and brokers. It ensures transparency and accountability in the market, reducing the chances of malpractices and providing a more secure environment for home buyers.