Confusion as realtors rush to give MahaRERA’s exam

The certification mandate for brokers engaged in the sale of properties under construction in Maharashtra is widely supported by those who recognise its potential to bolster consumer confidence. Nevertheless, numerous independent agents seem to lack awareness regarding this requirement, and some erroneously believe their existing RERA certification is sufficient

Mumbai: On January 10, a directive was issued by Maharashtra Real Estate Regulatory Authority (MahaRERA) mandating all property agents to undergo an exam and acquire a certificate from the authority to offer professional services before September 1, 2023. The authority also introduced a training programme to prepare realtors for this exam – the idea being that the training and certification would promote consistent practices, improve realtors’ knowledge of regulatory frameworks and ensure that agents are professionally qualified to assist home buyers. Although there is significant support for the initiative, a notable number of agents remain unaware of the certification requirement, and a considerable portion mistakenly assume that their existing MahaRERA certification exempts them from taking the exam. Moreover, the issue of a low passing grade raises concerns about the effectiveness and purpose of the entire process.

Mumbai, India - November 23, 2017: Under construction buildings at Lower Parel and Worli in Mumbai, India, on Thursday, November 23, 2017. (Photo by Anshuman Poyrekar/Hindustan Times) (Anshuman Poyrekar/HT Photo)

Earlier this year, MahaRERA reported that there are 5,756 stalled projects in the state. While under-construction projects offer cost advantages to buyers, fostering trust in the industry and the system is crucial to reinstating buyer confidence. The MahaRERA certification may, thus, be the need of the hour. Many of the realtors that HT spoke to were well aware of this.

The entire team at Nagarwalla Estates, with operations across Mumbai and its head office in Napeansea Road, has been training for the agents’ exam through a 20-hour online course, and many of the agents have already appeared for it, says Karl Nagarwalla. “The exam is mandatory for anyone in the industry who operates in or plans to operate in the primary sale market, i.e., transactions made directly with the developer – the certificate of completion will allow you to deal in ‘under construction’ properties,” Nagarwalla explains.

“Our business relies heavily on goodwill and relationships. And most of the buyers who come to us want ready properties, where they can see what they’re getting rather than having to wait for five years to do so,” says Nagarwalla, who shares that when it comes to primary sales the firm only works with select developers as they want to ensure that “buyers are secure”.

The MahaRERA directive has been welcomed by agents like these who feel the training programme and exam will help them dive deep into the technicalities of the RERA Act.

Vinita Saxena, an independent broker with over two decades of experience, who specialises in high-ticket luxury properties and heritage properties, adds that the certification is particularly important in India as it’s an unorganised sector and “people start operating as brokers here almost on a whim.” This certificate is valid for five years, at the end of which the brokers have to sit for the exam again.

But at least seven independent brokers HT spoke to – in Matunga, Mahim, Dadar and Bandra – said they had no idea about any such exam or requirement. “I have my MahaRERA certification already; I received it two years ago, so I don’t need to do all this. This is for new entrants into the industry,” said one Mahim-based broker.

Santosh Hinduja, a realtor who has his head office in Opera House and focuses primarily on commercial real estate in and around that area told HT that the RERA-certification these brokers are referring to was very easy to get. “You had to fill a form with some basic KYC details and information about your practice and that was it. It was a registration process really, but it was also mandatory, and like with the current certification, it needed to be revalidated every five years.”

The new course curriculum – which has been chalked out by MahaRERA – includes an introduction to Real Estate (Regulation and Development) Act 2016 (RERA) and to MahaRERA, an understanding of the MahaRERA portal as well as the responsibilities of agents, allottees and promoters; it also spells out what due diligence is required when agents facilitate the sale of properties along with details of the sales process, the forms, agreements, and how real estate calculations are made.

Hinduja, who has yet to enroll for the training programme, is unfazed by this. “It will hold no surprises for those of us who have been actively working in the line,” he says.

The problem is that with a passing grade set at a low 40% and an exam format based on multiple-choice questions, the exam may pose no challenge for anyone at all. In fact, it is likely that most agents will pass easily, which could potentially undermine the value of the certificate.

But many, like Saxena, believe this initiative is a step in the right direction. “Agents will now have to be extra careful when they scrutinise the paperwork,” she says. “Equipped with all the necessary knowledge on the subject, they’d need to be absolutely sure of what they’re proposing to potential buyers – which is great,” says Saxena.