RERA Registration for Brokers
The terms – real estate agent, dealer, broker and consultant – all point to that a person who acts as the bridge between a builder and the buyer. A broker plays various roles in a typical transaction – Sales Manager, a registration agent and at times even an arbitrator between the builder and the buyer. For this article, we shall call this crucial person a Broker. A rough estimate is that there are 5,00,000 to 9,00,000 brokers in the market in India and most of them are in the unorganised and unregulated segment of this industry.
The Real Estate industry itself is very crucial to the economy as it contributes to 11 % of the nation’s GDP, approximately Rs 11 lac crores, and the Broking business is approximately Rs. 18,000 crores per annum. Real Estate Industry is one of the drivers of economic growth in India. This crucial segment of the economy was totally unregulated. Home Buyers and brokers were left in the lurch by builders. Not anymore. With effect from 01/05/2017, Government of India has implemented RERA to regulate this market. Both Builders and Brokers are covered under this Act. In this article, we look at RERA registration for Brokers in detail.
RERA Registration Requirement under the Act
Sections 9 and 10 of the Act cover the role of a real estate Broker.
Though the Act specifies 31st July as the last date for registration by builders, brokers have not been given such lead time. Brokers need to register themselves immediately to continue to market projects registered under RERA, that they are handling.
Brokers are mandated to show the facilities, aspects and amenities of the building project they are marketing and not to add anything additional or hide crucial information to confuse or mislead the buyer. Any deviation or default will attract penalty under RERA Act, including cancellation of the license.
Documents Required for RERA Registration
Application for RERA registration should be accompanied by the following documents:
- Last three years Income Tax Return and if no IT returns are available, a declaration must be furnished.
- Past experience in this field of business. A declaration for this should be furnished.
- PAN & Aadhar cards
- Address of place of business and
- Blank receipt (sample) for the commission that will be billed.
Fee for RERA Registration
The fee for RERA registration varies from State to State. The following is the RERA registration fee for Maharashtra:
- Rs 10,000 for individual or proprietorship firm.
- Rs 1,00,000 for One Person Company, Partnership firm, Society, LLP, Private Limited Company, Public Limited Company.
Once the above application and fee is submitted, the authorities will issue RERA registration certificate within 30 days of application. The RERA registration certificate should be displayed at the place of business. All promotional materials such as advertisements and brochures of the broker must mention the RERA registration number.
Validity of RERA Registration
RERA registration for Brokers will be valid for 5 years from date of issue. The license can be renewed again for a period of 5 years, by submitting a renewal application 60 days prior to the expiry date.