RERA Rules for Property Agents: What Buyers Must Know
Many property buyers and sellers remain unaware that any individual or entity facilitating the sale or purchase of a plot, apartment, or building in a RERA-registered project is required to comply with the provisions of the Act. Under Section 9 of RERA, a real estate agent cannot facilitate transactions in a registered project without obtaining registration from the concerned state RERA authority.
Under the Act, a “real estate agent” includes any person who acts on behalf of another party in a property transaction and receives commission, fees, or any other form of consideration. This definition covers property dealers, brokers, consultants, and other intermediaries engaged in real estate transactions.
Section 10 of the Act lays down the duties and responsibilities of registered agents. These include maintaining transparency, avoiding misleading representations, assisting buyers with accurate project-related information, and ensuring compliance with applicable regulations. Registered agents are expected to possess and provide relevant project documents and disclosures to prospective buyers when required.
To obtain registration, agents must apply to the RERA authority in their respective state or Union Territory. Once approved, the authority issues a unique registration number that must be displayed in advertisements, communications, and transactions related to RERA-registered projects. The registration remains valid for a specified period and must be renewed in accordance with state regulations.
The law also grants RERA authorities the power to suspend or revoke an agent's registration if the agent engages in fraudulent practices, violates statutory provisions, or fails to comply with regulatory requirements. Before such action is taken, the agent must generally be given an opportunity to present an explanation.
Penalties for non-compliance are significant. Section 62 of the RERA Act states that any real estate agent who fails to register or violates Sections 9 and 10 can be fined up to ₹10,000 for every day the violation continues. The cumulative penalty may extend up to 5% of the cost of the property involved in the transaction. Continued violations of RERA orders can attract further penalties, and in certain cases, imprisonment provisions may also apply under the Act.
In Telangana, the Telangana Real Estate Regulatory Authority (TG-RERA) oversees the registration and regulation of real estate projects and agents. The authority has repeatedly emphasized compliance by developers and agents and has taken action against violations related to registration and misleading promotions. Buyers are encouraged to verify the registration status of projects and agents through the official TG-RERA portal before entering into any transaction.
The broader objective of this regulatory framework is to ensure that intermediaries operating in the real estate market are accountable and transparent. By bringing brokers and agents under a formal regulatory system, RERA seeks to reduce the risk of fraud, improve disclosure standards, strengthen consumer confidence, and promote a more professional real estate ecosystem across the country.
