The Real Estate (Regulation and Development) Act, 2016 came into force on
1stMay 2016 with 59 of 92 sections and rest of the provisions came into force
on 1stMay 2017, under this Act state can enforce their state law within the
light of the central act.
The purpose to enforce this act by the parliament is to regulate the Real Estate
sector which was earlier totally unaccountable and uncontrolled by the
government of India. With the enactment of this act now the unorganised sector
is now organised according to the laws and regulations which are enforced in the
territory of India.
Considerable legal compliances are enforced for the key components of the real
estate sector i.e. Promoter, Agents at last the home buyers. The main component
for whose this act has been enforced is to safeguard the interest of home
The purpose of the research is to make the readers aware about the legal
compliance enforced on a real estate broker with the enforcement of The
The Government of India recently introduced The RERA, 2016 which is been
welcomed by all the discouraged consumers or home buyers whose money is been
struck in real estate projects for many years and they not have a hope handing
over the possession of the project or the date of completion of the project.
The real estate sector is the major contributor in the growth of the nation it
contributes 8.53% in total GDP of the nation. Major performance of the industry
with the major rights and liabilities involved in the transactions has made or
able to made governments attention for appropriate regulations and policy of the
real estate sector. This lead to deep-seated legal renovation in the practice of
Real Estate (Regulation and Development) Act, 2016.
This act also bring changes under the regulations and compliance of the promoter
and the brokers the key components which force the Government of India to take a
good step for enforcement of the act and restrict them to take benefits of the
innocent home buyer.
Under this research division of the article made into three parts first it
talks about thebroker, second part talks about compliance of broker under RERA and
last part talks about rationale of research.
Who is Real Estate Broker?
A real estate agent is person who is given a license to negotiate sell and
arrange real estate projects. Negotiation can lead to showing property to
interested buyers; listing property under the individual is working upon,
filling the contracts and listing agreements of the property or project whose
sale is been initiated or the interested person is ready to purchase. Real
estate broker are licensed by clearing the exam of the broker organised by the
particular state government.
Real estate agents are working across the globe for the purpose and requirement
of buying and selling homes and property this process will always be there for
ever and will be continued for ever, it is worthy industry if you are honest and
trustworthy or devoted to their client.Real Estate Agent has been defined
in Section 2(zm)of RERA,2016.
Legal Compliance for Broker under RERA, 2016
Real estate broking is the relaxed business in territory of India as to be a
broker there is no need of any specific stipulation or knowledge requirement as
well as there are no standards of practice which establishes any accountability,
clearness or transparency and professional standards. Henceforward to bring
further accountability, clearness or transparency, agents have now been covered
under the scope of RERA,2016 and a mandatory requirement of registration is set
under section 9 of the said Act.
If without procurement of formal registration as prescribed under the Act, no
real estate agent should facilitate or ease the sale or purchase or performance
done by him or behalf of any being for any plot, apartment or building as the
event may be, in any project comes under the ambit of RERA, even sold by the
promoter of particular planning area.
Every person under the profession of the real estate broking should make an
application to the appropriate authority for the formal registration in
prescribed manner, within time, fee mentioned under the schedule and all
relevant document as prescribed.
once the application made to the authority and getting satisfied with all the
conditions or pre-requisites within such period of time may prescribe-
a) Grant a registration to the agent for the entire state or territory of
India, as the case may be.
b) May reject the application for the certain reasons which shall be
recorded in wiring, if such application made doesn’t follow the provisions of
the Act or rules or regulation mention under the Act.
Such application made before authority cannot be rejected until and unless a
reasonable opportunity of being heard is given to applicant.
once the period prescribed under the act is completed and the applicant doesn’t
receive any further message about the paucity of information under the
application made by the applicant or any massage for rejection of his
application than the application made is presumed to be registered.
Each and every broker who got registered as per the mentioned requirements or
provisions under this act is granted with a registration number by the
appropriate authority and the number issued by the authority should be refer by
broker in every purchase or sale transaction facilitated by himunder the
compliance of this act. The registration identity of the broker is valid for
particular period of time as prescribed under the act, once the time is
collapsed than the broker need to apply again to appropriate authority for
renewal of registration number on payment of prescribed fee with the particular
period of time prescribed under the Act.
once a registration number is approved to any agent who applied under the Act if
done any fraud or breach in any service provided by him are against the rules
and regulation of the Act or there might be a situation that if any of the agent
is granted registration number and later the authority is satisfied that the
registration is taken through the medium of fraud and misrepresentation than the
concerned authority can cancel such registration which came under their vision
shall be suspended.
Further such registration shall not be revoked until and unless a reasonable
opportunity to be heard is given to such individual who commits such fraud or
Registration process of Real Estate Broker
Rule 8when read under the light of Section 9 (2)recites that each and
every real estate broker is required to get registered by making an application
in written form to the appropriate authority established under the Act by
attaching Form ‘G’ with said application.
Documents for registration:
·Proof of Name, resident Address and the enterprises types under the
agent is working on.
·Particulars of incorporation i.e. Article of association (A.O.A.),
Memorandum of Association (M.O.A.), bye-laws.
·Photo Stat of Pan Card of person applying for agent.
·Copy of address proof where the business took place.
The registration once made is last for 5 years from the date the registration
Functions of Real Estate Broker
Every broker who has registered themselves under RERA shall facilitate the sale
or purchase under their name and with specified registration number. Along with
this they have to do some function in accordance or in the light of the
benchmark settled by the Act as defined in Section 10 of RERA, 2016.
Punishment for non-compliance and non-registration
The real estate broker who has not registered themselves under the Act has be
liable to a penalty up-to Rupees ten thousand per day from the day of default,
which may be extended up-to 5% of the cost of the project for the sale was
facilitated by the broker.
"Penalty for non-registration and contravention under sections 9 and 10-If any
real estate agent fails to comply with or contravenes the provisions of section
9 or section 10, he shall be liable to a penalty of ten thousand rupees for
every day during which such default continues, which may cumulatively extend up
to five per cent. of the cost of plot, apartment or buildings, as the case may
be, of the real estate project, for which the sale or purchase has been
facilitated as determined by the Authority".
The real estate broker who has failed to comply according to the order passed by
the authority shall be liable to a penalty every day form the date of default
is been committed which may be extended accumulatively up-to 5% of the cost of
the project for which the sale was facilitated by the broker.
"Penalty for failure to comply with orders of Authority by real estateagent–If any real estate agent, who fails to comply with, or
contravenes any of the orders or directions of the Authority, he shall be liable
to a penalty for every day during which such default continues, which may
cumulatively extend up to five per cent., of the estimated cost of plot,
apartment or building, as the case may be, of the real estate project, for which
the sale or purchase has been facilitated and as determined by the
As the real estate market is very emerging market and directly contributes in
development of the nation, if the infrastructure of a nation is good and
attractive it leads upwards in race to being developed nation. The research
discuss about the real estate broker and its compliance and regulation under the RERA Act, 2016 which are made mandatory to practice a profession
of broker in
nation. If a broker works with good intention and his motive is not only to earn
money but also providing better and satisfying services to his service taker
than he will not only earn money but good reputation in the market and his
service will indirectly will lead India from developing nation to developed
 Hereinafter referred asRERA,2016
 What do Real Estate Agents Do?, The Balance (2018), https://www.thebalance.com/what-real-estate-agents-do-2866370
(last visited Jan 20, 2018).
 Real Estate Agent, Sokanu.com (2018), https://www.sokanu.com/careers/real-estate-agent/
(last visited Jan 20, 2018).
 "real estate agent means any person, who negotiates or acts on behalf of
person in a transaction of transfer of his plot, apartment or building, as the
case may be, in a real estate project, by way of sale, with another person or
transfer of plot, apartment or building, as the case may be, of any other person
to him and receives remuneration or fees or any other charges for his services
whether as commission or otherwise and includes a person who introduces, through
any medium, prospective buyers and sellers to each other for negotiation for
sale or purchase of plot, apartment or building, as the case may be, and
includes property dealers, brokers, middlemen by whatever name called".
 Section 9 RERA,2016
 The real estate broker.
 The Real Estate (Regulation and Development ) Act, 2016
 Section 9 RERA, 2016
 National Capital Territory of Delhi Real Estate (Regulation and
Development) (General) Rules, 2016
 Real Estate ( Regulation and Development) Act,2016
 India: Registration of Real Estate Agents Under RERA, (2017), http://www.mondaq.com/india/x/624914/real+estate/Registration+of+Real+Estate+Agents+Under+RERA
(last visited Jan 24, 2018).
"(a) not facilitate the sale or purchase of any plot, apartment or
building, as the case may be, in a real estate project or part of it, being sold
by the promoter in any planning area, which is not registered with the
Authority; (b) maintain and preserve such books of account, records and
documents as may be prescribed;
(c) not involve himself in any unfair trade practices, namely:—
(i) the practice of making any statement, whether orally or in writing or by
visible representation which—
(A) falsely represents that the services are of a particular standard or grade;
(B) represents that the promoter or himself has approval or affiliation which
such promoter or himself does not have;
(C) makes a false or misleading representation concerning the services;
(ii) permitting the publication of any advertisement whether in any newspaper or
otherwise of services that are not intended to be offered.
(d) facilitate the possession of all the information and documents, as the allottee, is entitled to, at the time
of booking of any plot, apartment or
building, as the case may be;
(e) discharge such other functions as may be prescribed".
 Section 62, RERA,2016
 Section 65,RERA,2016
article has been Awarded Certificate of Excellence for Original Legal Research work by
our Penal of Judges