MahaRERA gets tough, suspends 20,000 estate agents

Agents who failed to obtain a MahaRERA Real Estate Agent Certificate of Competency have now been stopped from doing transactions

MUMBAI: Housing regulator MahaRERA has suspended the registration of about 20,000 real estate agents who failed to obtain a MahaRERA Real Estate Agent Certificate of Competency or did not register the certificate on the website despite multiple opportunities. The agents have now been stopped from doing transactions.

Housing regulator MahaRERA has suspended the registration of about 20,000 real estate agents who failed to obtain a Certificate of Competency. Representational Image

The decision to have qualified agents was taken on January 10, 2023, and the date for this was extended multiple times before finally becoming binding for all agents on January 1, 2024. A MahaRERA spokesperson said that on that date, agents were told to undergo training and clear examinations and also upload their certificate, failing which they would not be able to do business.

“So far, approximately 20,000 real estate agents have failed to fulfil the conditions laid down by MahaRERA,” said the spokesperson. “One of the factors is non-uploading of the Certificate of Competency on the website. Registration in such cases has been suspended for a period of one year. If the agents complete the mandatory training, obtain the certificate and upload it on the portal within a year, their license will be renewed. The registration of those who don’t will stand cancelled after a year.”

Those whose registration gets cancelled will not be able to apply for fresh registration for the following six months, which translates into being unable to do real estate transactions. “Those found violating the rules will be subject to appropriate action,” said the spokesperson. There are approximately 47,000 agents officially registered with MahaRERA since its inception on May 1, 2017.

This is the second big step taken by MahaRERA. Earlier this year, it cancelled the registration of 13,785 real estate agents for not renewing their licences. There were also several previously registered agents who made an appeal to MahaRERA to terminate their registration on different grounds. “Keeping in mind the genuine need to permit real estate agents to exit the system, MahaRERA has announced a de-registration procedure,” said the spokesperson.

MahaRERA officers said that agents who face deregistration now will have to fulfil several conditions for getting registered again. For example, the applicant should not be listed by promoters as their authorised real estate agent for any project. There should not be any pending complaints against the applicant and they should have submitted yearly reports of their transactions over the last two years, immediately prior to their de-registration application date. “In case these have not been submitted, they have to give the reasons for this on their letterhead,” said the spokesperson.

MahaRERA chairman Ajoy Mehta said, “In the real estate sector, the agent plays an important role, as they are the link between a homebuyer and a developer. Homebuyers often contact them first. Usually, a potential homebuyer receives primary project-related information directly from these agents. It is thus essential for agents to be well versed with the Real Estate (Regulation and Development) Act, 2016.”

Elaborating on this, Mehta said that agents needed to be knowledgeable about various aspects of the project and the industry such as the developer’s credibility. “They also need to know about the projects, validity of land titles, RERA-compliant carpet area, commencement certificates received, and approvals from the local authorities,” he said. “Besides, they should know how to obtain details on defaults, the financial standing of developers and related matters. Based on all this information, customers can make an informed choice about purchasing a property. Therefore, MahaRERA has made it mandatory for agents to undergo training, clear the examination, and obtain certification.”

MahaRERA will also not hesitate to cancel the registration of developers who continued to engage with unqualified agents. “Developers must not overlook this warning,” said Mehta.

Chandrakant Kank, a real estate agent from Ghatkopar East, said, “A real estate agent has to appear for the RERA exams. This is mandatory nowadays for all agents who want to continue in business.”