Impact Of Rera To Real Estate Agents

Definition of REAL Estate Agents:

According to the Bill, a real estate agent is a person “who negotiates or acts on behalf of one person in a transaction with another person” and “receives a remuneration for his services”. A real estate agent, says the law, “introduces prospective buyers and sellers for negotiations for sale or purchase of real estate”. The law covers property dealers, brokers and middlemen under the same category.
Market of real estate advisory services is certainly huge — from narrow lanes in small towns to swanky offices in metros, real estate advisors are found everywhere — there is no data available on the size of this service market, as it has remained unorganised. This is also responsible for the many misconceptions attached to the advisory profession. Now, the law will help authorities maintain a book on transactions taking place in the advisory services segment.

Stamp of Authenticity-

Section 9 of the law makes it mandatory for real estate advisors to register themselves with the real estate regulatory authority. This will on the one hand help them gain home buyers’ confidence, and on the other also bring in more and more competition in this service segment by weeding out any wrongdoers. All this, in the long run, will provide real estate advisors an opportunity to create their place in the sector.

Strict provisions for accountability-

According to Section 62 of act if a real estate advisor fails to comply with the provisions of Section 9 and 10 i.e. the mandatory registration of real estate advisors, and lays down the dos and don’ts, he will be subject to a penalty of Rs 10,000 a day till the time the default continues. This could go up to five per cent of the total project cost for which the transaction was facilitated.

According to Section 66, a broker could face a jail term of up to a year or a penalty that could go up to 10 per cent of the total project cost, or both, if he fails to comply with or contravenes the orders of the Appellate Tribunal.
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