RERA Agent Registration - Who Needs It?

Before RERA, anyone could call themselves a property consultant. A visiting card, a phone and a few builder contacts were enough. The Real Estate (Regulation and Development) Act, 2016 changed that for anyone who sells units in registered projects. Agents now have to register with the state authority, display their registration number, keep proper accounts and follow a set of duties, and they can be penalised if they don't.

We still meet brokers and small firms who aren't sure whether the rule applies to them, and developers who don't realise they can get into trouble for using unregistered channel partners. This guide explains who needs to register, who doesn't, how to apply, what you're committing to, and the penalties for getting it wrong. The details vary by state, so treat this as a general guide and check your state authority's current rules.

What the law says

Section 9(1) of the Act says no real estate agent can facilitate the sale or purchase of, or act on behalf of anyone in the sale or purchase of, any plot, apartment or building in a registered real estate project, without first obtaining registration under that section.

The definition of "real estate agent" in Section 2(zm) is wide. It covers any person who negotiates or acts on behalf of one person in a transaction of transfer of a plot, apartment or building in a real estate project, by way of sale, with another person, or who introduces prospective buyers and sellers to each other for negotiation, and who receives remuneration, fees or any other charge, whether as commission or otherwise. It expressly includes property dealers, brokers and middlemen, by whatever name they're called.

Three elements matter:

• The project. The rule applies to sales in projects registered with RERA. That includes ongoing projects and new projects.
• The activity. Negotiating, acting for a party, or introducing buyers and sellers to each other.
• The money. Receiving a fee, commission or any other charge for it.

If all three are present, you need registration.

Who needs to register

• Individual brokers and property dealers who sell units in registered projects for a commission.
• Channel partners of developers, whether individuals, partnerships, LLPs or companies.
• Real estate consultancy firms that market and sell new projects.
• International property consultants selling Indian projects, including to NRIs, where they're paid for it.
• Agents who deal in resale of units in registered projects that are still ongoing, where the transaction is within the Act.
• Online businesses that go beyond advertising and actually negotiate or broker transactions for a fee or commission. A portal that merely publishes listings and charges for the advertisement is in a different position from one that takes a success fee for closing a deal. Where the line falls depends on the business model, so take advice if you run such a platform.

If you operate in more than one state, you need registration in each state where you facilitate sales of registered projects. A registration with Haryana RERA doesn't cover sales of UP projects, for instance.

Who usually doesn't need to register

• The promoter's own employees. A developer's in-house sales staff sell on behalf of the promoter, which is itself registered for the project. They generally aren't treated as separate agents, though they're bound by the promoter's obligations, and the promoter is responsible for what they say.
• Agents dealing only in unregistered or exempt property, such as resale of completed flats in projects that were finished before RERA, independent houses, small projects exempt under Section 3(2), and rentals. Section 9 applies to registered projects. Some states, though, have their own broker laws or rules, so check locally.
• People who introduce a buyer without any fee, such as a friend or relative recommending a project.
• Lawyers, valuers and banks acting in their professional capacity, not as brokers.

The line can blur. A "referral partner" who gets a cash reward for every booking is receiving remuneration and is probably an agent. An employee of an associate company who is paid commission per sale may be too. When in doubt, register. The cost is small compared with the penalty.

Why developers should care

Section 4(2)(j) requires the promoter to give the names and addresses of its real estate agents when it applies to register a project. And Section 10 prohibits a registered agent from facilitating the sale of a plot, apartment or building in a project that isn't registered. Put together, these mean both sides need to be registered: the project and the agent.

A developer that uses unregistered channel partners risks a few things. Its registration disclosures become inaccurate. Buyers who were mis-sold by an unregistered broker may join the developer in their complaints. And the authority may see it as part of a wider compliance failure. In our experience, authorities have increasingly asked developers to confirm that every agent they use is registered. Keeping a register of your channel partners, with their RERA numbers and validity dates, is a simple safeguard.

Documents you'll typically need

The list varies by state and by type of applicant. A typical set:

For individuals

• Application form, as prescribed in the state rules (in many states, Form G or similar).
• PAN card.
• Aadhaar card or other identity proof.
• Address proof of residence and of the place of business.
• Passport-size photographs.
• Income tax returns for the preceding three financial years, or a declaration if you haven't filed.
• Details of any criminal cases or other proceedings, if asked.
• Payment of the registration fee.

For firms, LLPs and companies

• Application form.
• Certificate of incorporation or registration, partnership deed or LLP agreement, memorandum and articles of association.
• PAN of the entity, and PAN, identity proof, address proof and photographs of each partner or director.
• Address proof of the registered and principal business office.
• Income tax returns of the entity for the preceding three financial years.
• Board resolution or authorisation for the person applying.
• Payment of the registration fee, which is usually higher for entities than for individuals.

Some states also ask for GST registration, a bank account statement, or a self-declaration about past convictions or professional misconduct.

How much does it cost?

Each state sets its own fee in its rules. Most charge a lower fee for individuals and a higher one for firms, companies and other entities, and a renewal fee at the end of the validity period. The amounts are modest compared with a single commission cheque, but they change from time to time, so check the current schedule on your state authority's website before applying. Budget a little extra for professional help if your documents are incomplete, for example if your ITRs haven't been filed for every year or your office address proof is in someone else's name. Those are the gaps that most often lead to queries and delay.

The process

1. Create an account on the state RERA portal, under the agent registration section.
2. Fill in the form with your details, business address and, for firms, the details of each partner or director.
3. Upload the documents in the formats required.
4. Pay the fee online.
5. Training or certification, where your state requires it. MahaRERA, for instance, has introduced a training and competency certificate requirement for agents and their sales staff. Check whether your state has something similar.
6. Respond to queries from the authority.
7. Receive your registration number and certificate. Under Section 9(3), the authority has to grant or reject the application within 30 days. If it doesn't, and you've complied with the requirements, the application is deemed to be granted.

Registration is valid for the period set in your state rules, often five years, and has to be renewed before it expires, in the same way. Keep track of the date. Facilitating sales on an expired registration is the same as having none.

Your duties once registered

Section 10 lists what a registered agent must and mustn't do. In summary:

• Don't facilitate sales of unregistered projects. If the developer hasn't registered a project that needs registration, you can't sell it.
• Keep books of account, records and documents as the state rules require.
• Don't engage in unfair trade practices, which the Act describes to include:
  • making false statements, orally, in writing or by visible representation, that the services are of a particular standard or grade, that the promoter or agent has approval or affiliation it doesn't have, or that misrepresent the services;
  • allowing advertisements in any newspaper or otherwise of services that aren't intended to be offered.
• Help the buyer get the information and documents they're entitled to at the time of booking.
• Quote your registration number in every sale facilitated by you, and in your advertisements and marketing material.
• Discharge any other functions the state rules prescribe.

In practice, this means you need to know the project you're selling. Check that it's registered, read its RERA page, and don't promise things that aren't in the registered plans or the agreement. "Possession in 18 months", "assured returns", "OC expected next month" and "no extra charges" are the kinds of statements that come back in complaints.

Penalties

Section 62 sets the penalty for an agent who fails to comply with Section 9 or Section 10: up to Rs 10,000 for every day the default continues, which can add up to 5% of the cost of the plot, apartment or building whose sale or purchase was facilitated. For a busy broker, that can mean a large sum.

Under Section 65, an agent who fails to comply with an order of the authority faces a penalty for every day of default, which can add up to 5% of the estimated cost of the unit. Under Section 66, an agent who doesn't comply with orders of the appellate tribunal can face imprisonment of up to one year, or a fine, or both.

The authority can also revoke or suspend an agent's registration under Section 9(7) for breach of the conditions, misrepresentation or fraud in obtaining registration, or unfair practices. Before doing so, it must give the agent a hearing.

If you've been selling without registration, it's better to regularise now than to wait for a complaint. Apply for registration, stop facilitating sales until it's granted, and take advice on any exposure for past transactions.

Can a buyer complain against an agent?

Yes. Section 31 allows any aggrieved person to file a complaint against a promoter, an allottee or a real estate agent for any violation of the Act, rules or regulations. Buyers sometimes include the agent in a complaint against a builder where the agent made the misleading promises. The authority can direct the agent to comply, impose penalties, and in some cases the adjudicating officer can award compensation against the agent too. See our RERA complaint service.

Commission disputes

A practical question for agents: can you recover your commission from the developer or the buyer if you weren't registered? There's no clear national rule. Some authorities and courts have been reluctant to help unregistered agents enforce commission claims for transactions in registered projects, on the reasoning that the agent was acting in breach of the Act. Others have treated the commission agreement as a separate contract. Either way, registration strengthens your position, and a written agreement with the developer, setting out the commission and when it's payable, matters as much as ever.

A worked example

Here's a made-up example. Vikram runs a three-person property consultancy in Noida as a partnership. He sells new flats for three developers as a channel partner and also handles some resale and rental work.

His new-project work is squarely within Section 9, because all three projects are registered with UP RERA and he's paid commission on each booking. He registers the partnership with UP RERA as an agent, using the partnership deed, the firm's PAN, the partners' KYC, office address proof and three years' ITRs. Registration comes through within the month.

One of his developers also has a project in Gurugram, and asks him to sell it. Vikram's UP registration doesn't cover that, so he applies to Haryana RERA too before taking any bookings.

For his rental work, he doesn't need RERA registration. For resale of flats in a society that was completed in 2014, before RERA, he doesn't either. But when he gets a mandate to sell an under-construction unit in a registered project on resale, he quotes his registration number and makes sure the transfer goes through the developer properly.

A year later, a buyer he introduced to one of the projects complains to RERA that she was promised possession by a date that wasn't in the agreement. Because Vikram had followed the developer's approved brochure, kept a record of what he'd sent her, and quoted his registration number on the booking, he's able to show he didn't make the promise. The complaint proceeds against the developer only.

Sub-agents, salespeople and teams

Larger consultancies often work through networks of sub-brokers, freelancers or "associates" who bring in buyers and share the commission. Each of them is, in law, likely to be a real estate agent in their own right if they negotiate or introduce buyers for payment. Registering the main firm doesn't automatically cover independent sub-brokers who aren't its employees. If your business model relies on a network like this, either bring the people into the firm as employees acting under its registration, or make sure each one is separately registered. Some states also require the firm to keep a record of its sales staff, and Maharashtra's certification requirement extends to them.

Keeping your registration up to date

Registration isn't a one-time event. If your business address changes, partners or directors join or leave, the firm converts from a partnership to an LLP or company, or your contact details change, inform the authority in the way your state rules prescribe. A change in the legal entity may need a fresh registration rather than an update. Keep copies of your certificate and renewal, and update your registration number wherever it appears if it changes. An outdated number on a website or booking form invites questions.

What buyers should check about an agent

If you're a buyer, a few quick checks can save trouble later.

• Ask for the agent's RERA registration number and look it up on the state authority's website. The listing usually shows the name, address and validity.
• Check the project too. An agent's registration says nothing about whether the project is registered or on track.
• Ask for promises in writing. If the agent tells you about a possession date, a discount, a waiver of charges or an assured return, ask for it from the developer in writing. A verbal promise from an agent rarely binds the developer.
• Don't pay the agent money meant for the developer. Booking amounts should go directly to the developer's project account, by cheque or bank transfer, against a proper receipt.
• Keep the agent's messages. WhatsApp messages and emails can be useful evidence if there's a dispute.

If an agent has misled you, you can include them in a RERA complaint. Our guide on documents for a RERA complaint explains what to collect.

NRI buyers and overseas marketing

Many Indian developers market projects abroad through exhibitions, roadshows and overseas consultants, especially in the Gulf, the UK, the US and Singapore. An overseas consultant who earns commission on sales of a registered Indian project is facilitating that sale, wherever they sit. Developers should treat them like any other channel partner and check their registration. For NRI buyers, the same checks apply, and our page on NRI RERA complaints explains what to do if things go wrong.

Good practice for agents

• Register before you sell, in every state where you work.
• Check the project's registration on the RERA website before you market it, and keep a screenshot. Our guide on checking RERA registration explains how.
• Use the developer's approved material. Don't create your own brochures or make your own promises.
• Quote your RERA number on your website, social media posts, ads, visiting cards and booking forms.
• Keep records of what you've told buyers, especially by email and WhatsApp.
• Get your commission agreement in writing.
• Diary your renewal date.
• Train your staff on what they can and can't say.

Good practice for developers

• Keep a register of every channel partner with their RERA numbers, states and validity dates.
• Check registration before appointing a partner and at renewal.
• Put RERA compliance in your channel partner agreements, including an obligation to use only approved material and an indemnity for misrepresentation.
• Update your project disclosures on the RERA portal when you add or remove agents, where your state requires it.
• Don't pay commission to unregistered agents for sales in registered projects.

The bottom line

If you're paid to sell or help sell units in a RERA-registered project, you need RERA agent registration in each state where you do it. Registration is straightforward, the fees are modest, and the penalties for skipping it are significant. Once registered, you take on duties around accounts, honest marketing and quoting your registration number, and buyers can complain against you if you don't meet them. Developers have their own reasons to make sure every channel partner is registered. For help with an application, see our agent registration service, and for the project side, our registration checklist for builders.

Frequently asked questions

Do all property dealers need RERA registration?

Those who facilitate sales in RERA-registered projects for a fee or commission do. Dealers working only on rentals, or resale of property outside RERA, generally don't under Section 9, though state rules may differ.

Does a builder's in-house sales team need agent registration?

Generally not. They sell on behalf of the promoter, which is registered for the project. The promoter remains responsible for what they say.

What is the penalty for selling without registration?

Under Section 62, up to Rs 10,000 per day of default, which can add up to 5% of the cost of the unit whose sale was facilitated.

How long does agent registration take?

Section 9(3) requires the authority to decide within 30 days. If it doesn't and you've complied, the registration is deemed granted.

Is one registration valid across India?

No. You need registration with each state authority where you facilitate sales of registered projects.

How long is registration valid?

For the period set in your state's rules, often five years. It must be renewed before it expires.

Can a buyer file a RERA complaint against an agent?

Yes. Section 31 allows complaints against agents for violations of the Act, rules or regulations, including misleading statements.

This guide gives a general overview of real estate agent registration under the Real Estate (Regulation and Development) Act, 2016. Forms, fees, validity periods, training requirements and documents vary between states and change from time to time. This isn't legal advice; check your state authority's current rules.