What is a real estate agent?
A real estate agent is someone who connects buyers and sellers for real estate transactions and acts as an intermediary or representative in their negotiations. Real estate agents are licensed professionals who work for a real estate broker (a brokerage firm or an individual) who have a specialized license and more experience.
Whether you are selling or buying property, a real estate agent will help you close the deal with all your requirements in mind. He will guide you through every step from property research to closing the real estate transaction. Generally, the agent’s fee includes a percentage of the property sale price. Before reading about how to become a real estate agent in India, here is a list of common responsibilities of real estate agents that include research, administrative work and marketing:
Update property list
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Answering emails and phone calls
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Search the open list and find properties
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Analyzing comparative real estate markets
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Draft documents (lease, closing statement, deed, contract, etc.) and deliver them
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Stay up to date with real estate trends, markets and best practices
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Network with local businesses and potential clients
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Prepare and distribute promotional materials
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Run ad campaigns
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Manage their social media/online presence
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Create a business website or blog
How to become a real estate agent?
To become a property dealer in India, one needs to get registered under RERA (Real Estate Regulatory Authority). The Real Estate (Regulation and Development) Act 2016 regulates and organizes real estate businesses to facilitate home buyers and agents alike in their transactions. The RERA registration process and its fees vary across states.
Along with RERA registration, the agent also needs to apply for Professional Tax Registration (PTR). PTR refers to the tax levied by each state for the performance of professional services in the territory. The state tax department issues a PTR to the agent by charging a fee (the fee varies between states), and this registration certificate must be renewed annually.
Why is it necessary to register?
If you are interested in finding out how to become a real estate agent in India, you should know that the first step is to register. According to the Real Estate Regulation and Development Act (RERA) 2016, it is mandatory for every real estate agent to obtain a registration certificate and license to run his business. Its main objective is to regulate the real estate sector and make the processes more transparent.
RERA guidelines state that any agent without registration shall be prohibited from conducting his business. It also states that the agent will be responsible for any defect in the project and can be sued for misconduct.
Thus, a client can trust an agent with the property transaction without the fear of being misled as a registered agent will be fully involved in the project and will be responsible for any mistakes.
RERA Guidelines on Registration of Real Estate Agents and Brokers
The Real Estate (Regulation and Development) Act 2016 introduced the Real Estate Regulatory Authority (RERA) with a view to enhance transparency and accountability in real estate transactions and to streamline the entire process. The act requires every real estate agent to register with their respective state real estate regulatory authority to obtain a RERA registration number/licence. Once issued, the license will be valid for five years.
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As per RERA guidelines, a RERA registered/licensed real estate agent will be
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Do not facilitate the purchase/sale of any unregistered property.
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Follow the rules laid down in the law.
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Do not engage in any unfair trade practices such as making statements (oral or written) that are false and misleading or allowing the advertising of services that are not likely to be provided.
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Facilitate possession of all the documents and information a home buyer is entitled to while booking any apartment, plot or building.
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The RERA Act regulates real estate transactions and ensures that home buyers have access to licensed, responsible agents without having to worry about being duped or cheated. Safety, fairness, authorization, transparency and quality are all taken care of by RERA. It also offers many benefits to promoters, buyers and real estate agents.
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Documents required for RERA registration to become a real estate agent in India
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For RERA registration, the broker or real estate agent must have a duly filled application form ready. Also, the following documents must be submitted:
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Attested copy of proof of address, email address and phone number of the place from which the business will be conducted.
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Attested copy of PAN card of agent.
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Name, contact details, photograph and address of real estate agents and directors or partners.
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Income tax return of last three years.
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Name, type of enterprise (company, association, proprietorship, partnership, etc.), and registered address of the enterprise.
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If it is a real estate agency, the details of the organization including MoA (Memorandum of Association), Bye-laws and AoA (Articles of Association) must be submitted.
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Details of registration in any other state (if applicable).
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Details of any pending criminal/civil cases against the real estate agent or his company.
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Copy of Acknowledgment Receipt, letterhead and photo of rubber stamp that the agent intends to use.
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Details of real estate projects, promoters and their advertisers with whom the real estate agent has been associated for business during the last five years.
How to Become a Real Estate Agent in India – Eligibility Criteria
Those who have adequate knowledge of the field, excellent networking, and negotiation skills and are up-to-date about market trends can register to become real estate agents. While there is no minimum qualification mandatory to move into this career path, it is essential to meet a few basic requirements listed below:
The person must be at least 18 or 19 years of age depending on the state from which he is applying. He/she must pass the real estate license examination of the concerned state. To become a licensed real estate agent one must complete the required pre-license education according to the state’s educational qualification requirements.
Avoid deceptive, unethical or discriminatory clients.
The information provided above has definitely answered your question – How to become a real estate agent in India. Becoming a property dealer is not very challenging, provided you have a good knowledge of the real estate sector and have the skills for it. If you register under RERA and get your license/certificate, you can proudly say that you are a professional real estate agent. Moreover, with certain techniques and qualities, you can have a very successful real estate career.
