A decade ago, becoming a real estate agent was one of the easiest things to do, as anyone with a little bit of knowledge about the locality would set up shop and claim to be a seasoned real estate agent. This meant, most homebuyers had to be happy with whatever these agents would offer which often was in no regard with the homebuyers' choices and preferences.

To bring a check to this unorganised profession and bring back homebuyers' faith in the real estate market, The Real Estate Regulatory Authority (RERA) Act was introduced to bring transparency and accountability to the real estate sector in India.

The RERA Act has mandated the registration of not just real estate projects but also of real estate agents to ensure only experienced and honest sellers comprise the real estate market in India. For real estate agents operating in Karnataka, compliance with RERA regulations is crucial.

In this article, we bring you a comprehensive guide on how real estate agents in Karnataka can file for RERA applications and also apply for renewal of registration.

Before we begin, let us understand

How RERA Act Defines Real Estate Agents?

The Real Estate (Regulation and Development) Act's definition of a 'Real estate agent' is vast, covering individuals involved in negotiating property transactions. This includes those facilitating transfers of plots, apartments, or buildings between parties, and receiving compensation or fees for their services, whether as commission or otherwise.

The definition also extends to those introducing potential buyers and sellers through various channels for property negotiations, encompassing property dealers, brokers, and intermediaries.

The vast definition reflects the government's intent to regulate the real estate market in a strong manner, which was earlier abundant with unregulated practices and a lack of professionalism.

The act not only mandates registration but also emphasizes the meticulous maintenance of records and diligent discharge of duties by real estate agents.

This regulatory framework provides little opportunity for agents to bypass their obligations, signaling a significant shift toward accountability and transparency in the industry.

Responsibilities that Real Estate Agents Must Follow to Conduct Business:

1) Dealing With Registered Projects Only

Only a registered agent can deal in registered property: No real estate agent can facilitate the sale or purchase of or act on behalf of any person for an apartment or building that has not been registered under the RERA of the respective state. Upon registering with the authority, real estate agents will receive a registration number that will be valid for five years and will be quoted in every transaction they facilitate.

2) Ethical Conduct

Agents must avoid unfair practices like making false claims about services or approvals they or the promoter don't actually have. Any agent who misrepresents any information regarding a project to a buyer will be penalized. There will be a penalty of up to Rs 10,000 per day and a maximum of 5% of the total project cost.

3) Keeping Records

Additionally, real estate agents are required to keep records of the projects in which they are involved and are responsible for them.

4) Providing Thorough Information

They should help buyers get all the necessary information and documents they're entitled to when booking a property.

How Can Real Estate Agents File for RERA Application?

In Karnataka, to secure a registration a real estate agent has to submit an application in writing to the regulatory authority in Form G along with the below-mentioned details

• Brief details of the enterprise including its name, registered address, type of enterprise, proprietorship, societies, co-operative society, partnership, companies, etc.
• The real estate agent also must have particulars of registration that include the bye-laws, memorandum of association, articles of association
• Name, address, contact details, and photographs of the real estate agent if it is an individual or all individuals involved in the case of partnerships.

Documents that need to be uploaded for Individual Real Estate Agent Registration

• Agent Name (As on Pan Card)
• Agent Contact Details (Mobile, Telephone numbers)
• Agent E-mail Id
• Self Attested ID Proofs (Karnataka Proof) - Passport/ Voter Id/ Aadhar Card/ Driving Licenses/ Bank Passbook with Photograph
• Self Attested Pan Card Copy
• Passport Size Photograph of Real Estate Agent
• Agent Notarized Affidavit (Rs 100 stamp paper)
• Fee (Only through net banking)

Documents that need to be uploaded for registration by Societies/Company/Partnership firm/ Developmental Authority/ Trust

• Agent Firm Name
• Contact Details (Mobile, Telephone numbers)
• Firm Address
• Agent E-mail Id
• Self Attested ID Proofs (Karnataka Proof) (a-d any 1)
• a) Company Registration Certificate
• b) Shops and establishment certificate
• c) GST Certificate
• d) Bank passbook with Photograph (On Company Name)
• Self Attested Pan Card Copy
• Passport Size Photograph of Real Estate Agent
• Agent Notarized Affidavit (Rs 100 stamp paper)
• Fee (Only through net banking)

Application Procedure:

Visit RERA Karnataka Website: Access the official RERA Karnataka website to initiate the registration process.

Fill Application Form: Complete the registration form accurately with all required details and upload the necessary documents.

Payment of Fees: Pay the prescribed registration fees online as per the guidelines.

Submission: Submit the application form and await verification.

Fees and Payment Procedure for Application

In order to register as a real estate agent, the agent must pay a registration fee by way of a demand draft or banker check drawn on any scheduled bank or cooperative bank or by online payment

Individual real estate agents must pay a registration fee of Rs. 25,000

Real Estate Agencies: Agencies are required to pay a fee of Rs. 2,50,000 for registration.

How long does it take to get RERA Registration For Agents?

As per the rule, an individual will receive registration within 30 days after the application is received by the authority. The same goes for rejection, in case the individual's application is rejected, the same will be notified within 30 days.

The rejection can happen due to incomplete submission or wrong submission and in that case, the authority might grant to rectify and resubmit the application within a stipulated period.

Renewal of RERA Registration

RERA registration for real estate agents is typically valid for a 5-year period. To continue operations legally, timely renewal is essential.

For renewal of registration, an application needs to be made accompanied by a demand draft or a banker's cheque drawn on any scheduled banks or co-operative banks or via online payment for the sum of 5,000 rupees for individual agents and 25,000 rupees for anyone other than an individual. The individual will only be granted renewal of registration if the authority finds the individual compliant with all the provisions of the acts.

Upon receiving the registration, the agents can only use it for 5 years after which the renewal process has to be followed again.

Process for Renewal:

Application Submission: Log in to the RERA Karnataka portal and access the renewal section.

Verification of Details: Review and update any changes in personal or professional information.

Payment of Renewal Fees: Pay the renewal fees as specified by RERA Karnataka.

Submission: Submit the renewal application online.

Verification and Approval: Await verification by the authority for renewal approval.

RERA registration for real estate agents in Karnataka is a vital step towards ensuring transparency and credibility in the sector. By understanding the application and renewal processes, real estate agents can operate within the legal framework, fostering trust and accountability in their dealings.

As a homebuyer, staying updated with Karnataka RERA guidelines and complying with its provisions is crucial for easily navigating the real estate market in Karnataka.