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RM Reports

The Indian real estate brokerage industry and the impact of RERA

RERA is expected to change the face of the real estate industry. Even though there have been reported administration glitches in its implementation so far, the sentiment is generally positive regarding the first-of-its-kind real estate activity.

RERA is expected to change the face of the real estate industry. Even though there have been reported administration glitches in its implementation so far, the sentiment is generally positive regarding the first-of-its-kind real estate activity. When we say the whole gamut of realty sector is covered under the act, we also mean the real estate brokerage. These real estate agents have been a long-standing part of the sector, but remain largely unregulated, unauthorised or unmonitored. Considering our dependency on them to put us through the best property at the best prices, it is rather surprising that this sector stays under no authority supervision until now.

So, how is RERA expected to change the situation 

Just like the developers, even the real estate agents are now required to register under the act. Which means that all their buyer transactions will be recorded, maintained and supervised by the authority. RERA, in short, puts (the mostly) unorganised business of brokerage in the organised segment. Thus, bringing relief for the common buyers and the real estate sector as a whole.

We explain how 

Property consultants registered under RERA will build credibility and bring in more transparency in the sector. Establishment of a redressal body will protect the consumer interest in the long-term. This serves the very purpose of the act, to attend to buyers and prospective buyers, in a fair, methodical and transparent approach. The fact that buyers will now have a self-authority to assess the proceedings of a transaction, through a realty agent, brings in a buyer-friendly element to the real estate sector.

Brokers will now need to maintain records and show their registration number as proof of verification to the customers. Their registration numbers will be carried on all documents and advertisements displayed. Which means, their business functioning and product information can be validated by the customer now.

Property agents will also need to obtain a brokerage license from the state government. A specified course of action, to certify them as a real estate agent, has been designed. The RERA protocol for agents thus grants further access to information such as contact details of the registered agent, making them more accountable to the buyer community. They, in turn, will be encouraged by the authority to upsell housing projects with care and caution.

RERA practically builds a new buyer-seller ecosystem, which includes key stakeholders like agents and developers, on the one hand, and the government representatives on the other side. Reinforcement by the government will go a long way in ensuring a buyer-friendly image of the real estate sector. And, property agents or consultants are a part of the holistic growth of the sector now.

Any project which fails to comply with RERA will fend at the developer level. In case of any unprecedented delays like delay in delivery of the residential unit, the whole real estate community will stand up to meet the customer expectations. This includes the real estate agents who are designated RERA members now.

Concluding

Buyers now have a choice to check the certification or registration documents of an agent and accordingly, make an informed choice by selecting only experienced brokers to deal with. There will now be a professional code of conduct in dealing with real estate agents.

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