AAP Tax Law

RERA Act, 2016 | Chapter II

Section 10: Functions of Real Estate Agents under RERA

Section 10 of the Real Estate (Regulation and Development) Act, 2016 (RERA) sets out the statutory functions of a real estate agent registered under Section 9. It requires agents to avoid dealing in projects that require registration but are not registered, maintain prescribed records, avoid unfair trade practices and help buyers obtain information and documents at booking.

Who is a real estate agent under RERA?

Under Section 2(zm), a real estate agent broadly includes a person who negotiates or acts on behalf of another in the transfer of a plot, apartment or building in a real estate project, and receives remuneration, fees or other charges. The definition also covers persons who introduce prospective buyers and sellers through any medium for negotiation of a sale or purchase, including property dealers, brokers and middlemen. Section 9 governs their registration for activities covered by that section.

Section 10: Five statutory obligations

1. Do not facilitate sales in unregistered projects - Section 10(a)

An agent must not facilitate the sale or purchase of any plot, apartment or building in a real estate project or part of it, being sold by the promoter in a planning area, where the project is required to be registered but is not registered with the Real Estate Regulatory Authority. Read this with Section 3, which governs project registration and statutory exemptions. Agents should check the project's registration status on the relevant State or Union territory RERA portal before marketing or arranging a transaction.

2. Maintain books, records and documents - Section 10(b)

Agents must maintain and preserve the books of account, records and documents prescribed by the applicable rules. The precise records and retention requirements may vary by State or Union territory. Agents should keep their registration details, transaction records and relevant communications in accordance with those rules.

3. Avoid unfair trade practices - Section 10(c)

Agents must not engage in unfair trade practices, including oral, written or visual statements that:

  • Falsely claim that services are of a particular standard or grade;
  • Claim that the promoter or agent holds an approval or affiliation that they do not actually possess; or
  • Make false or misleading representations concerning services.

The prohibition also covers permitting advertisements, whether in newspapers or otherwise, for services that are not intended to be offered. An agent should verify claims about approvals, amenities, specifications and services before communicating them to buyers.

4. Facilitate access to buyer information - Section 10(d)

At the time of booking, agents must facilitate the allottee's possession of all information and documents to which the allottee is entitled regarding the plot, apartment or building. This duty should be read alongside the promoter's disclosure obligations under Section 11 and the allottee's rights under Section 19. Relevant material may include sanctioned plans, specifications, the project registration details and other disclosures required by law.

5. Perform other prescribed functions - Section 10(e)

Agents must discharge additional functions prescribed under the applicable rules. As RERA is implemented through the relevant State or Union territory Authority, agents should check local rules and regulations for any additional obligations.

Practical compliance checklist for real estate agents

  1. Confirm that the agent's registration under Section 9 is valid and quote the registration number as required by Section 9(5).
  2. Check whether a project requires registration under Section 3 and, if so, verify its registration and disclosures on the appropriate RERA website.
  3. Retain the books, records and documents required under local rules.
  4. Ensure all advertisements, approvals and project descriptions are accurate and supportable.
  5. Help the allottee obtain the required information and documents at booking.

Consequences of non-compliance

Under Section 62, an agent who fails to comply with Sections 9 or 10 may be liable to a penalty of ten thousand rupees for every day during which the default continues, cumulatively up to five per cent of the cost of the plot, apartment or building in the real estate project for which the sale or purchase was facilitated. Other provisions may apply depending on the nature of the contravention. Under Section 9(7), registration may also be suspended or revoked for qualifying breaches, misrepresentation or fraud, after giving the agent an opportunity of being heard.

Frequently asked questions

Can a registered agent market an unregistered project?

Not where the project is required to be registered under RERA. The applicability of registration and any exemption must be assessed under Section 3.

Do RERA agents have to keep transaction records?

Yes. Section 10(b) requires preservation of books, records and documents as prescribed in the applicable rules.

Can an agent be penalised for misleading advertisements?

Yes. False or misleading representations and advertisements for services not intended to be offered may breach Section 10(c), attracting consequences under the Act.

Official legislation and regulatory resources

Consult the Real Estate (Regulation and Development) Act, 2016 on India Code, the Ministry of Housing and Urban Affairs RERA resources and the relevant State or Union territory RERA Authority for current rules, notifications and project or agent registration details.

This article explains the central Act. State and Union territory rules, regulations and applicable orders should be checked for procedural requirements.