How to Become a Real Estate Agent in India? RERA Registration and Guidelines

Real estate agents  act as a bridge between property buyers and sellers. If you are considering becoming a real estate agent in India, skills such as communication, negotiation, and networking are essential.

What is a Real Estate Agent?

A real estate agent  is a professional who facilitates real estate transactions by connecting buyers and sellers and acting as an intermediary or representative in their negotiations. They are licensed professionals working under a real estate broker (a brokerage firm or an individual) with specialized rights and experience.

Whether  you are selling or buying a property, a real estate agent helps you finalize the deal keeping your needs in mind. They guide you through every step, from property research to closing the real estate transaction. Typically, an agent's fee includes a percentage of the property's sale price.

Common Duties of Real Estate Agents

Before  diving into how to become a real estate agent in India, here's a list of common duties involving research, administrative work, and marketing:

- Schedule meetings and showings

- Determine clients' financial capabilities and needs

- Update property listings

- Respond to emails and phone calls

- Search for open listings and identify properties

- Conduct comparative market analysis

- Draft documents (leases, final reports, deeds, contracts) and deliver them

- Stay updated with real estate trends, markets, and best practices

- Network with local businesses and potential clients

- Prepare and distribute promotional materials

- Run advertising campaigns

- Manage social media/online presence

- Create a business website or blog

How to Become a Real Estate Agent?

To become a property dealer in India, it is essential to register under RERA (Real Estate Regulatory Authority). The Real Estate (Regulation and Development) Act 2016 regulates and standardizes real estate businesses for home buyers and agents. The RERA registration process and its fees vary across states.

In addition to RERA registration, agents must also apply for Professional Tax Registration (PTR). PTR is a tax imposed by states for professional services within their jurisdiction. The state tax department issues PTR by charging a fee (varying by state), and this registration certificate must be renewed annually.

Why is Registration Necessary?

If you are interested in knowing how to become a real estate agent in India, you must first understand the importance of registration. According to the Real Estate (Regulation and Development) Act (RERA) 2016, every real estate agent must obtain a registration certificate and license to conduct their business. The primary goal is to regulate the real estate sector and make processes more transparent.

RERA guidelines state that any agent not registered cannot conduct their business. Agents are liable for any errors in the project, and legal action can be taken against them for misconduct.

RERA Guidelines for Registration

The Real Estate (Regulation and Development) Act 2016 introduced the Real Estate Regulatory Authority (RERA) to enhance transparency and accountability in real estate transactions. To obtain a RERA registration number/license, every real estate agent must register with the respective state's RERA. The license, once issued, is valid for five years.

According to RERA guidelines, a registered/licensed real estate agent:

- Cannot facilitate the sale/purchase of unregistered properties.

- Must adhere to the rules specified in the Act.

- Should not engage in any unfair trade practices such as misleading advertisements.

- Must provide all rightful documents and information to home buyers at the time of booking any apartment, plot, or building.

Documents Required for RERA Registration in India

For RERA registration, a broker or real estate agent must prepare a duly completed application form and submit the following documents:

- Certified copy of the business address proof, email address, and phone number.

- Certified copy of the agent's PAN card.

- Name, contact details, photographs, and address of the real estate agent and the directors or partners.

- Income tax returns for the last three years.

- Business details such as the company's name, type of enterprise (company, firm, proprietor, partnership), and the registered address.

- If a real estate agency, details of the agency's MoA (Memorandum of Association), byelaws, and AoA (Articles of Association).

- Details of registration in other states (if applicable).

- Information on any pending criminal/civil cases against the agent or their business.

- Copies of consent receipts, letterheads, and rubber stamps used by the agent.

- Details of real estate projects, advertisers, and associated clients from the last five years.

Key Qualifications for Becoming a Real Estate Agent

Understanding consumer behavior and developing marketing strategies is crucial to becoming and thriving as a successful real estate agent. Here are some essential traits for a real estate agent:

Networking

Networking is vital in the real estate business. Always stay connected with your peers and fellow agents; they can provide insights when dealing with difficult clients or unexpected challenges. Joining groups like the National Association of Realtors (NAR), the All India Real Estate Agents Association, or other certified real estate bodies can enhance your global network.

Transparency

While learning how to become a real estate agent in India, following guidelines like transparency is crucial. If you're unsure about any property aspect, the builder's track record, or the property's details, ensure to be transparent with your client about it. Clients should be informed about any legal issues or risks associated with the property.

Avoid Assumptions

When it comes to documents, property valuation, regulations, and other critical information, avoid assumptions. Ensure to rely only on facts and verified information.

Referrals

A good real estate agent has satisfied clients. Knowing how to become a real estate agent in India is not enough; learning from peers, working hard, providing your best service, and gaining clients' trust is crucial. This approach will help you get referrals from valued clients and build a name in the real estate market.

Online Presence

In this digital era, having an online presence is crucial for gaining reliable clients and improving your business. Maintain a business listing on Google, have an active social media page, and create a basic website where potential clients can learn about your business and connect with you. An easy connection with future clients increases your chances of getting business from them.

Advisor Role

If you want to know how to become a successful property dealer in a competitive market, it's essential not just to focus on sales. Acting as an advisor helps understand clients' needs, offering suitable options, and determining what's best for them. This approach ensures client satisfaction, gains their trust, and earns you testimonials.

Minimum Qualifications for Becoming a Real Estate Agent in India

While there are no strict minimum qualifications to become a real estate agent, meeting the following basic requirements is essential:

- The individual should be at least 18 or 19 years old, depending on the state.

- They must pass the state's real estate licensing exam.

- Complete the pre-licensing education as per the state's educational qualification requirements to become a licensed real estate agent.

Consequences of Not Registering

Every aspiring real estate agent wants to know how to become a real estate agent in India. As we've seen, the first and most crucial step is registering under RERA and obtaining a professional license. If a broker or agent continues to operate without registration, they may be fined ₹10,000 per day. The fine can extend up to 5% of the property's sale price for any wrongdoing.

The primary disadvantage of not registering is that an agent is not authorized to sell properties or engage in real estate business. Additionally, non-compliance with RERA orders can result in a penalty of up to 5%. Involvement in unfair trade practices can lead to a one-year imprisonment for the agent.

Practices to Avoid as a Real Estate Agent

Knowing how to become a real estate agent in India, here are some practices to avoid to succeed and stay out of trouble:

- Do not conduct business without registering with RERA.

- Avoid registering through fraud or misrepresentation.

- Avoid taking on small, last-minute tasks not listed in your job description.

- Do not set false expectations for clients.

- Avoid wasting clients' time with poor communication, sudden cancellations, or not returning calls.

- Do not sell unregistered properties.

- Avoid fraudulent activities and unfair trade practices.

- Do not misplace important information and client or property documents.

- Avoid advertising services that are not ultimately provided to the client.

- Avoid strained relationships with peers and competitors in the business.

- Do not file any fee disputes against your clients.

- Do not prioritize your interests over the client's or one client's interests over another's.

- Avoid engaging with fraudulent, unethical, or biased clients.

The information provided above should answer your question about how to become a real estate agent in India. If you have the knowledge and skills for the real estate industry, becoming a property dealer is not challenging.

Once you register under RERA and obtain your license/certificate, you can proudly call yourself a professional real estate agent. With some tricks and qualities, you can have a very successful career in real estate.