Real Estate Regulation and Development Act (RERA) was enacted in 2016 by the Government of India, with the aim to regulate the real estate sector and to protect the interest of homebuyers. The Karnataka government also implemented the RERA act in the state with its own set of rules and regulations. As a resident of Prestige Park Grove, a luxurious apartment complex in Whitefield, Bangalore, it is important to understand the impact of RERA on real estate agents and brokers.
What is RERA?
RERA is an act that aims to bring transparency and accountability to the real estate sector. It ensures that homebuyers are not cheated or deceived by builders or developers, making it mandatory for developers to register their projects with the regulatory authority. The act also specifies that the builders must provide timely possession of the property, and in case of delay, they must compensate the buyers.
RERA in Karnataka
The RERA act in Karnataka is known as the Real Estate (Regulation and Development) (RERA) Act, 2017. It was implemented in the state on 10th July 2017, and the Karnataka Real Estate Regulatory Authority (KRERA) was established. The act requires all real estate projects to register with KRERA, and it applies to all ongoing and future projects.
Role of Real Estate Agents and Brokers
Real estate agents and brokers play a crucial role in the real estate sector, acting as intermediaries between buyers and sellers. They assist buyers in finding suitable properties and provide information about the properties. They also negotiate the price and facilitate the transactions. Real estate agents and brokers are required to be registered with the regulatory authority under RERA.
Impact of RERA on Real Estate Agents and Brokers
RERA has brought about significant changes in the real estate sector, directly impacting real estate agents and brokers. Some of the impacts are:
- Transparency in Transactions
RERA ensures transparency in transactions by making it mandatory for developers to disclose all the details of the project on the RERA website. This includes details of the land, approvals, agreements, and other relevant documents. Real estate agents and brokers are also required to provide complete and accurate information to the buyers.
- Registration and Certification
Under RERA, real estate agents and brokers are required to register with the regulatory authority, and they must have a valid certification. This ensures that only qualified and genuine agents and brokers operate in the sector. The certification process involves training and testing, which improves the knowledge and skills of the agents and brokers.
- Accountability and Liability
RERA makes real estate agents and brokers accountable for their actions, and they can be held liable for any misrepresentation or fraud. This has led to a reduction in the number of unscrupulous agents and brokers, and it has improved the overall credibility of the sector.
- Increase in Demand for Qualified Agents
With the implementation of RERA, the demand for qualified and certified real estate agents and brokers has increased. Homebuyers prefer to deal with registered and certified agents and brokers, as they provide a sense of security and trust.
Challenges faced by Real Estate Agents and Brokers under RERA
Although RERA has brought about positive changes in the real estate sector, it has also posed some challenges for real estate agents and brokers. The registration and certification process under RERA is time-consuming and involves additional costs. This has made it difficult for small-scale agents and brokers to operate in the sector. The act also restricts the involvement of real estate agents and brokers in the marketing and advertising of unregistered projects, which can limit their scope of work.
Moreover, the liability and accountability of real estate agents and brokers under RERA can also be a challenge. Any misconduct or misrepresentation can result in penalties and legal action. Therefore, real estate agents and brokers must ensure that they provide accurate and complete information to the buyers.
In addition to these challenges, the ongoing COVID-19 pandemic has also impacted the real estate sector. The lockdowns and travel restrictions have made it difficult for real estate agents and brokers to conduct site visits and property inspections, which has led to a slowdown in the sector.
RERA has brought about significant changes in the real estate sector, and it has improved the transparency, accountability, and credibility of the sector. Real estate agents and brokers play a crucial role in the sector, and their registration and certification under RERA have improved the overall quality of services provided by them. However, the act has also posed some challenges, especially for small-scale agents and brokers. The ongoing COVID-19 pandemic has also impacted the sector, and it has added to the challenges faced by real estate agents and brokers.