Advent of RERA to rein in unscrupulous agents

With the implementation of Real Estate Regulation and Development Act (RERA), the scope of property brokers or agencies operating in smaller pockets who did not hesitate to foist inferior or flawed properties onto their clients will be wiped out.

Only those real estate agents, who abide by the regulator's strictures, will be allowed to carry out business activities and practices.

Brokers play an important role in real estate transactions, but they have never been under the ambit of a regulatory authority. Smaller brokers have been playing an unrestricted role in the Indian residential real estate marketplace, many of whom thrived on misinforming or under-informing their customers.

Very often, one can find them exaggerating the facilities at a builder's projects to make lucrative profits. Such defects become evident only after the deal is done.

With RERA into force, real estate brokers will be made more accountable to the home seekers.

"Brokers in the unorganised space will also have to get a license after paying Rs 25,000 as registration fees or they will go out of the market. They will also submit all the documents related to their business and self, along with the ITR form to the regional office which will help the real estate broking business mature and the brokers will become more serious towards the buyers,

said Mukesh Daksh, General Manager (Sales), Investor's Clinic.

Daksh added that with the advent of RERA, "homebuyers who use the services of real estate agents and agencies will be protected and will have access to quick legal redressal in case of faulty business practices."

The agents and agencies will have to ensure that they are duly registered with the regulator. By registering themselves, they effectively declare themselves accountable for their business activities and practices. As service providers to customers, they are answerable to all the questions and queries related to deliverables, committed by the developer.

Brokers who till now were churning profits, based on the ignorance or unwitting trust bestowed by clients into the agent, will now be eradicated from the marketplace. Only those agents who work in good

faith will be allowed to carry out their activities in the market.