RERA in its undiluted form is intended to bring in the much needed transparency in real estate sector. The new regime makes it difficult for the builders to fool the gullible homebuyers. Not only the developers who have to tread more cautiously while operating in the market now, real estate agents (or brokers) too have been forced to fall in line.
“It is a step in the right direction. For the first time, every agent will need to have a licence to do business. This will not only eliminate those who enter the business to make a quick buck and disappear overnight, often after cheating clients, but will also make the sector in general more vigilant. Considering that the license of an agent has to be renewed every five years and might be cancelled mid-term in case of any discrepancies, they will now be more cautious and honest,” said Sandip Patnaik, head capital markets (South India) for Jones Lang LaSalle, a global real estate services firm. Increased accountability on the part of brokers should make them quite careful in checking the background of developers and study a venture in depth so that they don’t take up any dubious projects.
Others in the brokerage business, couldn’t agree more. Reiterating how the regulations will assist in streamlining an “important business vertical in modern society,” they said how it’ll also, in the long-run, benefit market players with “clean track records.”
“Real estate agents and companies running this trade professionally welcome the rules as it creates a fine line between serious players and individuals working on casual basis. The customers can now choose to work with realtors who are registered and will be accountable for their actions,” said Shailender Singh, managing partner, Goodwill Coordinators.
Customers, meanwhile, see a probable rise in brokerage rates on account of the fact that real estate agents will now have to register themselves with the RERA authority by paying Rs 10,000 (in case of individual) or Rs 50,000 (in case of a firm). Currently, the brokers charge one or two per cent (of the total value of a house) for their services.