REAL ESTATE PROJECT

THIS PROJECT IS THE FULFILMENT OF THE PROJECT SUBMISSION OF REAL ESTATE LAW
OF B.A. LLB (HONS.) FOR THE EIGHT SEMESTER

Compliance of broker under Real Estate Regulation Act, 2017

SUBMITTED BY: SUBMITTED TO:

ISHAN KAUL Dr. GURMANPREET KAUR

ROLL NO. 19144

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 ACKNOWLEDGEMENT

I have put in a lot of effort in the completion of this project. However, it would not have been possible
without the kind support and help of many individuals and organizations.

I would like to extend my sincere thanks to all of them.

I am highly indebted to Dr. GURMANPREET KAUR for her guidance and constant supervision as well
as for providing information regarding the project and also for her support in completing the project.

I would also like to thank the administration for the provision of best facilities without which the
completion of this project .

Lastly I would like to thank the almighty whose blessings helped us to complete this project.

THANK YOU

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 SUPERVISOR’S CERTIFICATE

Dr. GURMANPREET KAUR Date:-

Rajiv Gandhi National University of Law

Patiala(Punjab)

This is to certify that the dissertation titled: Compliance of broker under Real Estate Regulation Act, 2017,
submitted to Rajiv Gandhi National University of Law, Patiala in partial fulfilment of the requirement of
the B.A. LLB. (Hons.) course is an original and bona fide research work carried out by Mr. ISHAN
KAUL under my supervision and guidance. No part of this project has been submitted to any University
for the award of any Degree or Diploma, whatsoever.

Dr. GURMANPREET KAUR

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 CONTENTS

1. Introduction

2. Who is Real Estate Broker?

3. Legal Compliance for Broker under RERA, 2016

4. Registration process of Real Estate Broker

4.1. Documents for registration:

4.2. Functions of Real Estate Broker

4.3. Punishment for non-compliance and non-registration

5. Conclusion

Introduction
The Government of India recently introduced The RERA, 2016 which is been welcomed by all the
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discouraged consumers or home buyers whose money is been struck in real estate projects for many years
and they not have a hope handing over the possession of the project or the date of completion of the project.

The real estate sector is the major contributor in the growth of the nation it contributes 8.53% in total GDP
of the nation. Major performance of the industry with the major rights and liabilities involved in the
transactions has made or able to made governments attention for appropriate regulations and policy of the
real estate sector. This lead to deep-seated legal renovation in the practice of Real Estate (Regulation and
Development) Act, 2016.

This act also bring changes under the regulations and compliance of the promoter and the brokers the key
components which force the Government of India to take a good step for enforcement of the act and restrict
them to take benefits of the innocent home buyer.

Under this research division of the article made into three parts first it talks about thebroker, second part
talks about compliance of broker under RERA and last part talks about rationale of research.

Who is Real Estate Broker?

A real estate agent is person who is given a license to negotiate sell and arrange real estate projects.
Negotiation can lead to showing property to interested buyers; listing property under the individual is
working upon, filling the contracts and listing agreements of the property or project whose sale is been
initiated or the interested person is ready to purchase. Real estate broker are licensed by clearing the exam of
the broker organised by the particular state government.

Real estate agents are working across the globe for the purpose and requirement of buying and selling homes
and property this process will always be there for ever and will be continued for ever, it is worthy industry if
you are honest and trustworthy or devoted to their client.Real Estate Agent has been defined in Section
2(zm)of RERA,2016.

Legal Compliance for Broker under RERA, 2016

Real estate broking is the relaxed business in territory of India as to be a broker there is no need of any
specific stipulation or knowledge requirement as well as there are no standards of practice which establishes
any accountability, clearness or transparency and professional standards. Henceforward to bring further

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accountability, clearness or transparency, agents have now been covered under the scope of RERA,2016 and
a mandatory requirement of registration is set under section 9 of the said Act.

If without procurement of formal registration as prescribed under the Act, no real estate agent should
facilitate or ease the sale or purchase or performance done by him or behalf of any being for any plot,
apartment or building as the event may be, in any project comes under the ambit of RERA, even sold by the
promoter of particular planning area.

Every person under the profession of the real estate broking should make an application to the appropriate
authority for the formal registration in prescribed manner, within time, fee mentioned under the schedule and
all relevant document as prescribed.

Once the application made to the authority and getting satisfied with all the conditions or pre-requisites
within such period of time may prescribe:

a. Grant a registration to the agent for the entire state or territory of India, as the case may be.
b. May reject the application for the certain reasons which shall be recorded in wiring, if such
application made doesn't follow the provisions of the Act or rules or regulation mention under the
Act.

Such application made before authority cannot be rejected until and unless a reasonable opportunity of being
heard is given to applicant.

Once the period prescribed under the act is completed and the applicant doesn't receive any further message
about the paucity of information under the application made by the applicant or any massage for rejection of
his application than the application made is presumed to be registered.

Each and every broker who got registered as per the mentioned requirements or provisions under this act is
granted with a registration number by the appropriate authority and the number issued by the authority
should be refer by broker in every purchase or sale transaction facilitated by himunder the compliance of this
act. The registration identity of the broker is valid for particular period of time as prescribed under the act,
once the time is collapsed than the broker need to apply again to appropriate authority for renewal of
registration number on payment of prescribed fee with the particular period of time prescribed under the Act.

once a registration number is approved to any agent who applied under the Act if done any fraud or breach
in any service provided by him are against the rules and regulation of the Act or there might be a situation

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that if any of the agent is granted registration number and later the authority is satisfied that the registration
is taken through the medium of fraud and misrepresentation than the concerned authority can cancel such
registration which came under their vision shall be suspended.

Further such registration shall not be revoked until and unless a reasonable opportunity to be heard is given
to such individual who commits such fraud or misrepresentation.

Registration process of Real Estate Broker

Rule 8 when read under the light of Section 9 (2)recites that each and every real estate broker is required to
get registered by making an application in written form to the appropriate authority established under the Act
by attaching Form ‘G' with said application.

Documents for registration:

 Proof of Name, resident Address and the enterprises types under the agent is working on.
 Particulars of incorporation i.e. Article of association (A.O.A.), Memorandum of Association
(M.O.A.), bye-laws.
 Photo Stat of Pan Card of person applying for agent.
 Copy of address proof where the business took place.

The registration once made is last for 5 years from the date the registration took place.

Functions of Real Estate Broker

Every broker who has registered themselves under RERA shall facilitate the sale or purchase under their
name and with specified registration number. Along with this they have to do some function in accordance
or in the light of the benchmark settled by the Act as defined in Section 10 of RERA, 2016.

Punishment for non-compliance and non-registration

The real estate broker who has not registered themselves under the Act has be liable to a penalty up-to
Rupees ten thousand per day from the day of default, which may be extended up-to 5% of the cost of the
project for the sale was facilitated by the broker.

Penalty for non-registration and contravention under sections 9 and 10-If any real estate agent fails to
comply with or contravenes the provisions of section 9 or section 10, he shall be liable to a penalty of ten
thousand rupees for every day during which such default continues, which may cumulatively extend up to
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five per cent. of the cost of plot, apartment or buildings, as the case may be, of the real estate project, for
which the sale or purchase has been facilitated as determined by the Authority.

The real estate broker who has failed to comply according to the order passed by the authority shall be liable
to a penalty every day form the date of default is been committed which may be extended accumulatively
up-to 5% of the cost of the project for which the sale was facilitated by the broker.

Penalty for failure to comply with orders of Authority by real estate agent, If any real estate agent, who fails
to comply with, or contravenes any of the orders or directions of the Authority, he shall be liable to a penalty
for every day during which such default continues, which may cumulatively extend up to five per cent., of
the estimated cost of plot, apartment or building, as the case may be, of the real estate project, for which the
sale or purchase has been facilitated and as determined by the Authority".

Conclusion
As the real estate market is very emerging market and directly contributes in development of the nation, if
the infrastructure of a nation is good and attractive it leads upwards in race to being developed nation. The
research discuss about the real estate broker and its compliance and regulation under the RERA Act, 2016
which are made mandatory to practice a profession of broker in nation. If a broker works with good intention
and his motive is not only to earn money but also providing better and satisfying services to his service taker
than he will not only earn money but good reputation in the market and his service will indirectly will lead
India from developing nation to developed nation.