RERA Registration for Agents
Mandatory registration process for real estate agents under RERA Act 2016.
Registration Fee
₹10,000–25,000
Varies by state. One-time fee for individual agents.
Validity
5 Years
RERA registration is valid for 5 years, renewable before expiry.
Penalty (No RERA)
₹10,000/day
Daily penalty for practicing without RERA registration.
| Requirement | Details |
|---|---|
| Eligibility | Individual or firm dealing in real estate |
| Documents Required | PAN, Aadhaar, address proof, passport photo, business proof |
| Application Portal | State-wise RERA website (e.g. MahaRERA, UP RERA, Karnataka RERA) |
| Processing Time | 15–30 working days after document verification |
| Renewal | Apply 60 days before expiry with updated documents |
📌 Is RERA registration mandatory for all agents?
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Yes. Under Section 9 of RERA Act 2016, no person can act as a real estate agent without obtaining registration from the state RERA authority. Violation attracts penalty of ₹10,000 per day.
📌 Can I register in multiple states?
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Yes. If you operate in multiple states, you must register separately with each state RERA authority. Each state has its own portal and fee structure.
📌 What happens if my registration expires?
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You must stop practicing immediately. Apply for renewal before expiry. If expired, you may need to re-apply as a fresh registration in some states.
ImportantOnly RERA-registered agents can facilitate sale/purchase of RERA-registered projects. Non-compliance attracts heavy penalties.
Pro TipDisplay your RERA registration number on all marketing materials, visiting cards, and property listings to build client trust.
Brokerage Legal Guidelines
Legal framework governing brokerage fees, agreements, and agent responsibilities in India.
Standard Brokerage
1–2%
Typical brokerage on residential property sale. Both buyer and seller may pay separately.
Rental Brokerage
1 Month
Usually 1 month rent from both landlord and tenant for residential rentals.
Commercial
2–3%
Higher brokerage applicable for commercial property transactions.
| Transaction Type | Standard Rate | Who Pays | Legal Status |
|---|---|---|---|
| Residential Sale | 1–2% of sale value | Buyer + Seller | Negotiable, no fixed law |
| Residential Rental | 1 month rent | Landlord + Tenant | Negotiable |
| Commercial Sale | 2–3% of sale value | Both parties | Negotiable |
| Commercial Rental | 1–2 months rent | Both parties | Negotiable |
| Plot/Land | 1–2% of sale value | Seller typically | Negotiable |
📌 Is there a fixed brokerage rate in India?
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No. India has no law fixing brokerage rates. It is mutually agreed between agent and client. However, RERA requires the brokerage amount to be disclosed in the agency agreement.
📌 Can an agent charge brokerage from both buyer and seller?
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Yes, unless agreed otherwise in the brokerage agreement. It is common practice but must be disclosed to both parties to avoid disputes.
📌 Is a written brokerage agreement mandatory?
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Under RERA, agents must maintain written records. A written brokerage agreement protects both agent and client and is strongly recommended.
Legal ProtectionAlways sign a written brokerage agreement before starting work. Verbal agreements are difficult to enforce in disputes.
GST on BrokerageBrokerage income above ₹20 lakh/year attracts 18% GST. Register for GST if your annual brokerage exceeds this threshold.
Agreement Formats
Key legal agreements used in real estate transactions — what they contain and when to use them.
Sale Agreement
Mandatory
Agreement to Sell is mandatory before property registration. Legally binding on both parties.
Token Amount
1–2%
Typically 1–2% of property value paid as token/booking amount at agreement signing.
Stamp Duty
State-wise
Agreement must be stamped as per state stamp duty laws to be legally valid.
| Agreement Type | Purpose | Mandatory? | Registered? |
|---|---|---|---|
| Agreement to Sell (ATS) | Commits buyer & seller before final sale deed | Yes (RERA projects) | Optional but recommended |
| Sale Deed | Final transfer of ownership | Yes | Mandatory (Sub-Registrar) |
| Brokerage Agreement | Defines agent fees and scope | Recommended | Not required |
| Rental Agreement | Terms between landlord and tenant | Yes (>11 months) | Mandatory (>11 months) |
| Power of Attorney (PoA) | Authority to act on behalf of owner | Situational | Mandatory (for sale) |
| MOU (Memorandum) | Intent to transact, non-binding | No | No |
📌 What is the difference between Agreement to Sell and Sale Deed?
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Agreement to Sell creates an obligation to transfer property in future. Sale Deed is the actual transfer document registered at Sub-Registrar office. Both are legally binding.
📌 Can a rental agreement be for less than 11 months?
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Yes. Agreements up to 11 months are typically not registered to avoid stamp duty. However, 11-month agreements have limited legal protection. Registered agreements provide stronger legal rights.
Agent ResponsibilityAlways use a lawyer-drafted Agreement to Sell. Ensure all terms — price, payment schedule, possession date — are clearly mentioned.
Unregistered AgreementsAn unregistered Sale Deed is inadmissible as evidence in court. Always register the final Sale Deed at the Sub-Registrar office.
Builder Project Approvals
Key approvals a builder must obtain before launching or selling a residential or commercial project.
RERA Registration
Mandatory
Projects >500 sqm or >8 units must be registered with state RERA before launch.
Commencement Cert.
Before Start
Commencement Certificate (CC) from local authority required before construction begins.
OC Required for
Possession
Occupancy Certificate (OC) from local authority required before handover to buyers.
| Approval | Issuing Authority | When Required | Buyer Significance |
|---|---|---|---|
| Land Title / NA Order | Revenue Department | Before project launch | Ensures legal land ownership |
| Layout Approval | Local Development Authority | Before plotting | Confirms approved layout |
| Building Plan Approval | Municipal Corporation/BDA | Before construction | Confirms approved design |
| Commencement Certificate (CC) | Municipal Corporation | Before construction starts | Legal permission to build |
| RERA Registration | State RERA Authority | Before sale/marketing | Mandatory for booking |
| Completion Certificate (CC) | Municipal Corporation | After construction | Confirms as-built compliance |
| Occupancy Certificate (OC) | Municipal Corporation | Before possession | Legal to occupy/live in |
| Khata / Property Tax | Local Body (BBMP/PMC) | After OC | Required for utilities |
📌 Can a builder sell flats before RERA registration?
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No. Under Section 3 of RERA Act, no builder can advertise, sell, or book any apartment in a project without first registering with the state RERA authority. Violation attracts penalty up to 10% of project cost.
📌 What is the difference between CC and OC?
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Completion Certificate (CC) confirms construction is as per approved plan. Occupancy Certificate (OC) confirms the building is fit for occupation with all amenities. OC is mandatory for possession. A flat without OC cannot be legally occupied or sold.
📌 Should buyers verify approvals before booking?
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Absolutely. Always verify RERA registration number, building plan approval, and CC before paying any booking amount. Check the state RERA portal for project details and complaints if any.
Red Flag for AgentsNever market or sell a project without RERA registration. As an agent, you can also be penalized for facilitating sale of non-RERA registered projects.
Buyer Protection TipAlways ask the builder for RERA registration number, approved building plan copy, and OC before advising clients to book.
RERA VerificationVerify any project on your state RERA portal. All registered projects must display their RERA number on all marketing materials.