Real estate agents to come under regulator: Ajay Maken

Real estate agents to come under regulator: Ajay Maken

Real estate agents and consultants will have to register themselves with a proposed real estate regulatory authority once a bill governing the sector is passed in Parliament, probably in the coming monsoon session.

Aimed at curbing black money transactions and streamlining the real estate sector, the Real Estate (Regulation and Development) Bill, approved by Union Cabinet on Tuesday, will also make it mandatory for the agents to maintain their books of accounts about transactions and submit it to the regulator periodically.

By legislating, it is proposed to eliminate fly by night real estate agents and also prevent black money transactions in this sector, Housing and Urban Poverty Alleviation Minister Ajay Maken told reporters here. 

As the Ministry of Finance was keen to check black money in real estate sector, it was decided to bring the agents and consultants under the ambit of law, he said.

Name to be disclosed

Even if a developer or builder ties up with any real estate agency or consultant for selling residential apartments or plots, the name of the agency has to be disclosed in their filings with the regulator.

Stating that only developers of residential buildings and plots would come under the regulator, the Minister said agents and property developers failing to register will not be allowed to carry on business.

To bring uniformity in registration of houses, he said his ministry is planning to introduce model sale agreements between buyer and seller which could be adopted by the state governments.

Not for old houses

However, the new law will not apply to purchase or sale of old houses.

Though the provisions were tailored for apartments and plots of 1,000 sq metres or 12 dwelling units and above, the respective states may reduce the dimension.

Once the bill takes effect, all states have to set up Real Estate Regulator, who is required to dispose of complaints from aggrieved buyers within 15 days.

An appellate tribunal headed by a High Court retired judge will hear appeals. In addition to the tribunal, consumers may approach consumer courts as well.