How to Become a Real Estate Agent in India? RERA Registration and Guidelines
Real estate agents are the link between the buyer and seller of a property. If you are wondering how to become a real estate agent in India, qualities like communication, negotiation skills, and networking are some of the essential traits to become a real estate agent.
What is a real estate agent?
A real estate agent is a person who connects buyers and sellers for real estate transactions and acts as a mediator or representative in their negotiations. Real estate agents have licensed professionals who work for a real estate broker (brokerage firm or individual) who has a specialized license and more experience.
Whether you are selling or buying a property, the real estate agent will help you complete the transaction with all your requirements in mind. He/she will guide you every step of the way, from investigating the property to closing the real estate deal. Generally, the agent’s fee includes a percentage of the property’s sale price. Before you read about how to become a real estate agent in India, here is a list of the general duties of real estate agents including research, administrative work, and marketing:
- Schedule appointments and presentations
- Determine client’s financial abilities and needs
- Update property listings
- Answer emails and phone calls
- Search open listings and find properties
- Carry out comparative real estate market analysis
- Draft documents (leases, closing statements, deeds, contracts, etc.) and deliver them
- Stay up to date with real estate trends, markets, and best practices
- Network with local businesses and potential clients
- Prepare and distribute promotional material
- Run advertising campaigns
- Manage their social media/online presence
- Build a business website or blog
How to become a real estate agent?
To become a real estate dealer in India, you need to register with RERA (Real Estate Regulatory Authority). The Real Estate (Regulation and Development) Law of 2016 regulates and organizes real estate business to facilitate both buyers and agents in their transactions. The RERA registration process and fees vary from country to country.
In addition to a RERA record, the agent must also request a Professional Tax Record (PTR). PTR refers to the tax charged by each state for the performance of professional services in the area. The State Tax Department provides the PTR to the agent for a fee (fees vary between states), and this Certificate of Registration must be renewed annually.
Why is it necessary to register?
If you are interested in knowing how to become a real estate agent in India, then you should know that the first step is to register. According to the Real Estate Regulatory and Development Act (RERA) 2016, it is necessary for all real estate agents to have a certificate of registration and a license to conduct their business. The main objective is to regulate the real estate sector and make operations more transparent.
RERA guidelines state that any unregistered agent will be prevented from operating their business. It also states that the agent will be liable for any errors in the project, and can be sued for misconduct.
In this way, the client can entrust the property transactions to an agent without fear of being misled because the registered agent will be fully involved in the project and will be responsible for any error that occurs.
RERA Guidelines on Registering Real Estate Agents and Brokers
The Real Estate (Regulation and Development) Law of 2016 launched the Real Estate Regulatory Authority (RERA) with the aim of improving transparency and accountability in real estate transactions and regulating the entire process. The law requires every real estate agent to register with the Real Estate Regulatory Authority in their state to obtain a RERA registration/license number. Once the license is issued, it will be valid for five years.
As per RERA guidelines, RERA registered/licensed real estate agents will need this
- not facilitate the purchase/sale of an unregistered property.
- obey the rules stated in the Act.
- not indulge in any unfair trade practices such as making a statement (orally or in writing) that is false and misleading or allowing the advertisement of services that will most likely not be offered.
- facilitate the possession of all the documents and information that the homebuyer is entitled to at the time he/she books any apartment, plot, or building.
RERA regulates real estate transactions and ensures that home buyers have access to authorized and responsible agents without having to worry about misleading or fraud. RERA deals with security, fairness, authorization, transparency, and quality. It offers a series of benefits to the developer and buyer as well as to the real estate agent.
Documents required to register with RERA to become a real estate agent in India
For RERA registration, the real estate broker or agent must have an application form duly completed and ready. Apart from this, the following documents are required to be submitted:
- Authenticated copy of the address proof, email address, and phone number of the place from where the business will operate.
- Authenticated copy of the agent’s PAN card.
- Name, contact details, photograph, and address of the real estate agent and the directors or partners.
- The last three years’ Income Tax Returns.
- Name, type of enterprise (company, societies, proprietorship, partnership, etc.), and registered address of the enterprise.
- If it’s a real estate agency, then particulars of the agency, including the MoA (Memorandum of Association), bylaws, and AoA (Articles of Association), must be submitted.
- Registration details in any other state (if applicable).
- Details of any criminal/civil cases pending against the real estate agent or his/her company.
- Copies of acknowledgment receipts, letterheads, and rubber stamp images that the agent wishes to use.
- Details of the real estate projects, promoters, and their advertisers with whom the real estate agent associated for business in the last five years.
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Essential Qualities to Become a Real Estate Agent?
In order to become a real estate agent and have a successful career in the competitive real estate market, it is important to understand consumer behavior and the marketing strategies needed for growth. Here are some of the basic qualities that a real estate agent should have:
Networking: Networking is of paramount importance in real estate. Stay in touch with your colleagues and fellow agents at all times; They will be able to provide information when it comes to difficult clients or projects with unexpected challenges. Additionally, being a part of groups like the National Association of Realtors (NAR), Association of Certified Realtors of India and All India Association of Realtors will help in improving your network globally.
Transparency: In addition to knowing how to become a real estate agent in India, it is essential to follow certain guidelines, such as transparency, to be successful. If you are not clear about any aspect of the property, are unsure about the history of the builder, or are not familiar with the specifics of the property, make sure to be open about it with your client. The customer must be informed of any inconvenience or legal risks associated with the purchase of the property.
Avoid Assumptions When it comes to documentation, property valuations, legal aspects, and other vital information, avoid making assumptions. Make sure to rely only on facts and facts.
References: A good real estate agent is one who satisfies clients. Knowing how to become a real estate agent in India is not enough. You need to learn from your fellow agents, work hard, do your best, and earn the trust of your customers. Doing so will earn referrals from your valued clients and help make a name for yourself in the real estate market.
Online Presence – In this digital age where everyone depends on online information, creating an online presence plays an important role in gaining trusted clients and boosting your business. You have a Google business listing, an active social media page, and/or a basic website where potential customers can search for your business and connect with you. When potential clients easily connect with you, your chances of winning business increase.
The role of the advisor – If you want to know how to become a successful real estate trader in the competitive market, it is important that you not focus only on selling. Working as a consultant rather than just a sales agent will help you understand customers’ requirements, provide them with the right choices, and help them find what’s best for them. This will not only ensure customer satisfaction, but also help you gain the trust of customers, and subsequently, get customer testimonials.
How to Become a Real Estate Agent in India – Eligibility Criteria
Anyone with sufficient knowledge in this field, excellent communication and negotiation skills, and keeping abreast of market trends can register to become a real estate agent. Although there is no mandatory minimum qualification for orientation in this career direction, it is necessary that one fulfill some of the basic requirements listed below:
- The age of the individual must be at least 18 or 19 years, depending on the state from where he/she is applying.
- He/she should clear the concerned state’s real estate license examination.
- Should complete the necessary pre-license education as per the state’s educational qualification requirements for becoming a licensed real estate agent.
What are the disadvantages of not registering?
Every aspiring real estate agent wants to know how to become a real estate agent in India. As we have already seen, the first and most important step is to register under RERA and obtain a professional license. If any broker or agent continues to do business without registration, he will be liable to pay a fine of Rs. 10,000 per day in case of default. The penalty price can also be extended up to 5% of the cost of the property you are selling.
One of the main disadvantages of not being registered is that the agent will not be authorized to sell the property or engage in any real estate business. In addition, a penalty of up to 5% will be applied in case of non-compliance with RERA orders. In the event of leniency in any kind of unfair business practice, the agent will be subject to a year in prison.
Practices to avoid as a real estate agent
Now that you know how to become a real estate agent in India, let’s have a look at some practices that a real estate agent should avoid in order to achieve success and not get into trouble:
- Do not go into business without first registering with RERA.
- Avoid registration through fraud or misrepresentation.
- Avoid saying “no” to small jobs at the last minute just because they don’t appear in your job description. In fact, taking care of last-minute tasks may help you seal the deal.
- Don’t give customers wrong expectations.
- Avoid wasting customer time on bad calls, the abrupt cancellation of plans without valid reasons, no return of calls, etc.
- Avoid selling unregistered property.
- Avoid engaging in fraudulent activities and unfair business practices.
- Don’t be the one who loses important client information and documents or land.
- Avoid advertising services that will not be provided to the customer in the end.
- Avoid having bitter relationships with your colleagues and competitors who are doing well.
- Avoid submitting rate disputes with your customer.
- Avoid placing your own interests over the interests of your client or prioritizing the interests of one client over another.
- Avoid fraudulent, unethical, and/or discriminatory clients.
- The information provided above will surely answer your question: How to become a real estate agent in India. Becoming a real estate dealer is not difficult, as long as you have competent real estate knowledge and have a knack for it.
If you register with RERA and receive your license/certificate, you can proudly say that you are a professional real estate agent. Also, with some tactics and qualities, you can have a very successful real estate career.