‘A burnt child dreads the fire’- After RERA implementation the entire real estate market becomes uneasy to a great extent in terms of continuance. RERA prescribes that brokers found defaulting RERA rules will be charged heavily as a penalty. Specifically brokers don’t have any involvement in project delay or even inferior supply quality of the project. Now, when the Real Estate (Regulation and Development) Act, 2016 has revealed penalty charge and detention clause for builders, brokers would be brought cheek by jowl through the legal route.
Act says- “Real estate agents/brokers who wrongly represent a certain quality or service are liable for a penalty of Rs 10,000 per day for as long as the default continues, which can extend up to 5% of the cost of the plot or apartment or realty project concerned.”
Already under RERA ambit brokers can’t advertise or initiate any pre-launch sale, this has already impact brokers’ business. Normally they earn 1-2 per cent of the property value from a deal. Naturally 5% penalty costs more than their revenue. Brokers deal in ones and twos, won’t sustain long in the market. Brokers have been penalized for those issues, which they have no direct participation.
“Brokers should be aware of what’s they are promoting. Just for the sake of cordial association with the builder he can’t convince a buyer to invest in something which is not corresponding to his requirements or built of some poor material. An ideal broker should know every bit of a property starting from the land purchase to the constructional growth step-by-step. Alluring a buyer with some feature which is not at all part of the property is something a broker should refrain from,”- said West Bengal RERA expert Mr. Mahesh Somani.
On the same note it’s undeniable that an agent shouldn’t suffer for builders’ high jinks. It’s not something that an agent deliberately does with his client. RERA makes mandatory registration for the brokers by July 1. Since, the deals can’t be authorized without registration, it will cause another 3-4 months excess hold-up for business proceedings. Yet, agents should welcome RERA for future advancement of the real estate sector. It will bring back transparency in realty deals.
- Somani Realtors News Network