RERA Brings the Real Estate Brokers Under Strong Grip
Jul 25, 2017 Real Estate News
The Condition of Brokers and Agents:
Until the implementation of RERA, small time brokers and agents had a free run as they became indispensable in the sector. But the scenario has changed now because property brokerage is coming under the ambit of the RERA (Real Estate Regulation and Development Act).
As per the regulation of this Act, not only real estate projects, but also the agents have to be registered with the regulatory authorities in three months from July 10, 2017. The brokers and agents would be persecuted by law if they do not abide by this rule. Earlier, there was no such mandate, especially when it came to the residential marketplace. For this reason, the agents could pocket a lot of money which was mostly unaccountable.
But by registering themselves to this regulatory act, they are effectively declaring themselves as well as making themselves accountable for their business activities and practices. Due to this strict vigilance of RERA, many small time agents may close down the business or merge with larger brokerage firms in 2-3 years. As it is due to the sluggish real estate market in the past two years, it has been difficult for brokers to sustain themselves. Now because of the penal factor and credibility issues of RERA situation is going to be worse for them.
Buyer’s Perspective:
But this Act is going to be beneficiary for customers because the customers can no longer be tricked by the agents and brokers. There have been numerous instances of real estate agents taking customers for a ride by selling the same property to one or more persons. It has also been witnessed that many times even politicians have doubled up as real estate brokers in many cities and have twisted the real estate laws according to their desires in order to earn high commissions from the properties. Such unprofessional activities are not likely to happen now.
Moreover, the brokers who made their money taking advantage of the ignorance or unwitting trust of clients will now be eradicated from the marketplace. This is going to happen so because of the new rules that will distinguish between credible and non-credible brokers. In this way, the buyers who use the services of real estate agents will now be protected.
Therefore, it is expected that hence forth buyer’s complaints on being led astray by brokers and agents who wanted to make a quick buck off their gullibility would hardly be heard of.
Until the implementation of RERA, small time brokers and agents had a free run as they became indispensable in the sector. But the scenario has changed now because property brokerage is coming under the ambit of the RERA (Real Estate Regulation and Development Act).
As per the regulation of this Act, not only real estate projects, but also the agents have to be registered with the regulatory authorities in three months from July 10, 2017. The brokers and agents would be persecuted by law if they do not abide by this rule. Earlier, there was no such mandate, especially when it came to the residential marketplace. For this reason, the agents could pocket a lot of money which was mostly unaccountable.
But by registering themselves to this regulatory act, they are effectively declaring themselves as well as making themselves accountable for their business activities and practices. Due to this strict vigilance of RERA, many small time agents may close down the business or merge with larger brokerage firms in 2-3 years. As it is due to the sluggish real estate market in the past two years, it has been difficult for brokers to sustain themselves. Now because of the penal factor and credibility issues of RERA situation is going to be worse for them.
Buyer’s Perspective:
But this Act is going to be beneficiary for customers because the customers can no longer be tricked by the agents and brokers. There have been numerous instances of real estate agents taking customers for a ride by selling the same property to one or more persons. It has also been witnessed that many times even politicians have doubled up as real estate brokers in many cities and have twisted the real estate laws according to their desires in order to earn high commissions from the properties. Such unprofessional activities are not likely to happen now.
Moreover, the brokers who made their money taking advantage of the ignorance or unwitting trust of clients will now be eradicated from the marketplace. This is going to happen so because of the new rules that will distinguish between credible and non-credible brokers. In this way, the buyers who use the services of real estate agents will now be protected.
Therefore, it is expected that hence forth buyer’s complaints on being led astray by brokers and agents who wanted to make a quick buck off their gullibility would hardly be heard of.
