Traditionally, the real estate brokers have acted as the middlemen between home buyers and developers. They sell the property on behalf of the developers to sellers and earn a pre-determined commission. They are the people whom home buyers trust for guidance in real estate matters.
However, there have been cases where brokers have breached the authenticity of the transaction and duped the home buyers in the process. At times, they either charged a hefty commission or vanished before completing the deal formalities. This happened because brokers were not required to be registered legally or fell under the purviewof any regulation.
However, RERA has changed the ball game for real estate brokers/agents completely. As per the new norms, brokers – whether independent or agencies, have to register under RERA with state regulators mandatorily. If they don’t, then they are not allowed to participate in any real estate transaction. RERA has also laid down a code of conduct which brokers are expected to follow in trade practices. Moreover, they must also adhere to the following rules:
RERA hopes that these norms will make the real estate brokers more professional in their dealings and accountable for their actions. This will also bring the much-needed transparency in the sector.
Now, while the intentions of RERA are in the right place, it has not found complete acceptance among the real estate brokers for the following reasons:
It is a fact that RERA favours home buyers, but it does understand the concerns of real estate brokers. Hence, a Central Advisory Council has been formed with representatives from various stakeholders from the real estate sector, including representatives from the broker community. Through this council, brokers can state their grievances and give constructive feedback.
Every new change has its ups and downs. It takes time to settle down. Same is the case with RERA. Hopefully, RERA will also understand the problems faced by brokers and do something about it. Till then, it is the need of the hour that real estate brokers extend their full co-operation to RERA.
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