You have potential and leads to sell and buy properties in India. But to avoid falling under the long trap of compliance or any legal complexities while expanding your business in different Indian states, know below the basic information to get yourself registered under RERA.
Definition of Real Estate Agents:
As per section 2 of the RERA act, real agents are defined as the entities who are indulging in financial transactions for transferring real estate ownership from one party to another by way of sale and purchase.
They often help in the negotiation of the deal or in representing one party to another. So, they receive a commission from either of the parties by offering their expertise on real estate properties.
Know The Documents Required Beforehand:
Every kind of registration procedure requires documents to come off as a piece of evidence in front of laws like RERA. So, here’s a prompt list of documents required for you to be an agent:
- PAN Card
- Aadhaar Card
- ITR for consecutive last three years
- Business PAN Card
- Passport-sized photograph
- CIN number or the COI number of your company
- Authorized copies of letterheads of your company
- The incorporation forms are also required, which are byelaws, AoA, MoA, and the like.
Validity For RERA Registration For Agents:
The day agents receive their receipt for the registration form is the day when the validation period starts. From then on, the period lasts up to the next five years. However, if any agent breaches rules mentioned in the RERA act, then the overall validation ceases to exist.
Procedure For Applying For The RERA Agent Registration:
Under rule 8 of the RERA act, section 9 (2), the real estate agents are required to submit their written application to the Authorized establishment. This office regulates and peruses the “Form G” which is to be submitted in triplicate.
Or else, the aspiring real estate agents can contact the lawfully registered companies that help agents like you to fill up forms with complete compliance work online.
Benefits of RERA Agents:
Apart from the general exemptions, that are not many, RERA registration is required for all real estate agents in India for the contemporary benefits related to properties like:
- It generates credibility when the agent is registered under the RERA act. Hence, such agents cannot exploit the prices or the parties, if they want to sustain their license and not fall under any legal cases against them.
- It exudes professionalism from every aspect where the property is to be exchanged between different parties.
- The real estate agent can easily opt for commission-based services and file regular returns of their existing business, fulfilling all compliances and taxes to be levied. Hence, there will be no scope of money laundering or other related issues, directly affecting the people who are or were interested in buying or selling properties.
Penalty In Case Of Breach:
The real estate agent who is not registered or breaching the contract is condemned to pay up to Rs. 10,000 per day of default. This default can be related to any breach acted upon or failing to register on-time.
The fee can rise up to 5 percent more if the default continues.