A lot has been said regarding how the Real Estate (Regulation and Development) Act 2016 sets rules for developers and builders. However, the do's and don'ts are not just restricted to them, it is also applicable for real estate brokers.

Real estate broking rarely requires any specific qualifications or experience and there is no specific code of practice, which leaves it open to malpractices by non-professional agents with zero accountability. To bring a check in to such unfair practices, the government has also covered agents/brokers under the ambit of RERA.

Who is a real estate agent?

Before we delve more into the topic, it is important to know that the RERA act does not give any specific definition of a "broker" or a "realtor" per se but it defines real estate agents.

According to the Act, a "real estate agent" is any person who negotiates or acts on behalf of one person in a transaction of transfer of his plot, apartment or building in a real estate project, by way of sale, with another person or transfer of plot, apartment or building of any other person to him and receives remuneration or fees or any other charges for his services whether as commission or otherwise. The rule is also applicable for a person who introduces, through any medium, prospective buyers and sellers to each other for negotiation for sale or purchase of plot, apartment or building, as the case may be, and includes property dealers, brokers, middlemen by whatever name called.

RERA guidelines applicable for "real estate agents"

1) As we know that the promoter has to get every project he launches registered under RERA, similarly every "real estate agent" also has to get registered under RERA. If a real estate agent fails to obtain the registration, he will not be able to sale, purchase of or act on behalf of any person to facilitate the sale or purchase of any plot, apartment or building in a real estate project or part of it even though the project is registered under RERA by the promoter.

2) Following the registration, agents will have to display their registration number at their place of work as well as in all advertisements and documents. They will also have to maintain a record of documents for each real estate project they deal with.

3) Under the RERA act, the real estate agent can no longer make any statements that falsely represent the services that the builder is given or claim that the promoter of the project or himself has approvals that have not yet been obtained.

4) The real estate agent is also responsible for providing all the information and documents that the home buyer is supposed to get at the time of booking of the plot.

If the real estate agents fail to comply with all the rules and regulations of the act, the authority can revoke their registration or suspend them.

Penalties the broker face for non-compliance of RERA

If any real estate agent failsto comply with any of the orders or directions of the Authority, he shall be liable to a penalty for every day during which such default continues, which may cumulatively extend up to 5% of the estimated cost of plot, apartment or building, of the real estate project for which the sale or purchase has been facilitated.

Penalty for failure to comply with orders of Appellate Tribunal by a real estate agent

If a real estate agent violates with any orders of the Appellate Tribunal, he is liable to face imprisonment of up to one year or be levied a cumulative 10% fine for every day the default continues or with both.

Following the establishment of RERA, it is safe to say thatbuyers who used the services of real estate brokers/agents in the past will no longer end up with properties whose defects come to the forefront only after the deal is done.