In this article, Abhijeet Singh discusses whether a real-estate agent can advertise for under-construction projects when its application is pending or not.

The Real Estate (Regulation and Development) Act, 2016 (“RERA”) has made it mandatory for promoters and real-estate agents to register with the RERA Authority in each state. As of now there are 22 States and Union Territories which have established these authorities and formulated rules in consonance with the RERA Act, as listed below:

Implementing State/UT Notification Date Website
1.Gujarat 29th October 2016 http://gujrera.gujarat.gov.in/
2.Uttar Pradesh 11th October 2016 http://www.up-rera.in/
3.Chandigarh 31st October 2016
4.Dadra and Nagar Haveli 31st October 2016 http://maharera.mahaonline.gov.in/
5.Andaman and Nicobar Islands 31st October 2016
6.Lakshadweep 31st October 2016
7.Daman and Diu 31st October 2016 http://maharera.mahaonline.gov.in/
8.Madhya Pradesh 22nd October 2016 http://rera.mp.gov.in/
9.Delhi 24th November 2016
10.Maharashtra 19th April 2017 https://maharera.mahaonline.gov.in/
11.Andhra Pradesh 28th March 2017
12.Odisha 25th February 2017
13.Bihar 1st May 2017 https://nagarseva.bihar.gov.in/rerabihar/
14.Rajasthan 1st May 2017 http://rera-rajasthan.in/
15.Jharkhand 18th May 2017
16.Uttarakhand 28th April 2017
17.Tamil Nadu 22nd June 2017 http://www.tnrera.in/index.php
18.Karnataka 10th July 2017 http://rera.karnataka.gov.in/
19.Punjab 8th June 2017 http://rera-punjab.gov.in/
20.Chattisgarh 26th April 2017
21.Haryana 28th July 2017
22.Telengana 4th August 2017

Which projects are required to be registered?

As per Section 3 of the RERA, the following kinds of commercial and residential projects (w.e.f 1st May 2017) are required to be registered under this act:

  • that are ongoing, defined as projects for which a completion certificate has not been obtained from the local competent authority (whereas completed projects are those which have been given a completion project by the competent authority) or,
  • where the area of the proposed land (not carpet area as per Section 2(k) of the RERA Act) for construction exceeds 500 sq.mt. or,
  • which have more than 8 apartments

This threshold limit can also be reduced by the individual states or Union Territories.

Advertisement of projects with pending application

The RERA Act strictly prohibits promoters to advertise, market, book, sell or offer for sale or invite persons to purchase any plot, apartment or building in projects which have not been registered vide Section 3 of the Act.

Registration of real-estate agents

The RERA Act has made the role of real-estate agents more definitive and accountable. This had been done to curb the common mis-selling practices by the agents. Section 9 of the RERA Act requires agents to get themselves registered in order to engage in sale or purchase of any plot, apartment or building. A registration number is provided by the Authority upon successful registration which is then required to be quoted in every transaction facilitated by him (see Section 9(5).

So can the real-estate agents advertise for ongoing project?

NO.

The registration of the project mandates the promoters to share details of the real-estate agents at the time of registration of the project which includes registration of the under-construction projects to share details of its real-estate agents under Section 4 clause (j). Therefore, without being registered with the project, the real-estate agent cannot even facilitate in sale or purchase related to project let alone advertise it.

Can additional real-estate agents be added to the project after the project is registered?

NOT as of now.

Real-estate agents are required to be registered with the project at the time of project registration. At present, there is no provision of adding on agents to the project.

However, before the project registration window closes; the Maharashtra RERA has allowed the promoters to edit typographical errors and name corrections till 31st July 2017. (If you need to update your details please click here.)

Does a broker or real estate agent need to be registered under RERA for dealing in secondary sales?

No, RERA requires registration of real-estate agents if they are involved in selling ongoing or new projects that are required to be registered under the Act. If you are operating in the secondary sale market, that is, selling property which is already owned by someone, then you are not required to be registered under RERA.

Does a broker or real estate agent need to be registered under RERA if he or she is dealing in property which is itself not required to be registered under RERA?

If a broker is dealing with a builder’s flat of a project which itself does not require registration, that is, it has a construction area of 500 sq.mt. or less, or 8 apartments or less, no registration is required for a broker.

Does a broker need to be registered for dealing in rentals?

The RERA Act will not affect the brokers who are dealing in rentals. They do not have to register with the Authority, nor do they need to quote their registration number in dealing with projects which are not registered under this Act.

 

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