A licenced real estate person who helps clients in purchasing, selling and renting a property is known as a realtor. A commonly used term for a realtor in India is the real estate agent, whereas realtors are more widely used term in the global market. Realtors deal in transactions across categories —residential, commercial, and industrial, based on their training.
Check how to become a real estate agent in India
In case of buying a property, realtors are the link between buyers and sellers and earn a commission, that is some percentage of the property value, once the deal is done.
In case of property rentals, real estate agents are the link between owners and tenants and earn a commission, generally a percentage of the rental value of the property, once the deal is done.
Various kinds of realtors
Listing agents
These are real estate agents who work only for the seller and list their properties for sale. Based on the listing agreements, they are responsible for the following.
- Pricing
- Advertising
- Showing properties
Buyers’ agent
These are real estate agents who work for clients interested in buying properties — residential and commercial. They are responsible for the following.
- Home tour
- Negotiating property price
- Fixing a real estate lawyer
Dual agents
Some realtors are trained to provide services to both buyers and sellers. They are known as dual agents.
Brokers
- Principal brokers: They take care of the entire property transaction.
- Managing brokers: They hire, train, and manage principal brokers.
Responsibilities of real estate agents
- Understanding client requirements
- Setting up property tour appointments
- Negotiating the property value
- Closing the purchase/rent by enabling payment of token money
- Doing all documentation work associated with property purchase, including registration of property.
What should real estate agents know to succeed?
- Sector and segment knowledge: Understand the evolving real estate market and the consumer behaviour. It is good to work beyond a person aiding sale, or purchase of property. Knowing the segment helps a consultant and he will be able to give good suggestions helping the client take an informed decision.
- Know the right people: Know the right people who will advise you and give leads. It is recommended to join realtor organisations, such as the National Association of Realtors (NAR) that will ensure learning and exposure.
- Have a good track record: The realtor segment is localised. Having utmost transparency and honesty in this line is necessary as it may backfire in future. While undertaking a deal, inform your client about any potential risk the property is associated with. Give the customer all details about the property and do not hide anything.
- Clarity in transactions: The client is entrusting a realtor with his money while opting for a property. So, a realtor should assume that the client wouldn’t be aware of the smallest details, this ignorance may later become an issue. It is in the best interest of the client to chalk out every aspect of the deal.
- Work towards referrals: The realtor segment thrives on referrals. Once you have provided good service to your clients, you will get recommended by your clients that will help your business to grow.
What are the fees charged by real estate agents?
Realtors work for real estate agencies, or brokers and make money through commissions. These commissions are based on the property value. More sale value of the property means more earning by the realtor. While commissions are negotiable based on the quantity of projects a realtor sells, experts believe that the commission falls around 6% of the total sale value. This commission is divided between the buyer agent, the seller agent and the brokerage firm associated with the deal.
How can you become a real estate agent?
- To become a realtor, it is imperative to register with the Real Estate Regulatory Authority (RERA) of the state.
- Agents should appear in exams mentioned as per state requirements to keep their license valid.
- Some states like Maharashtra have a comprehensive realtor course that one should undertake and appear in exams. Agents passing the exam will have active MahaRERA registration.
- Realtors should apply for Professional Tax Registration (PTR), which comes under state tax department. A PTR is provided on paying fees prescribed by states. It should be renewed every year.
How can a real estate agent register with RERA?
- To register with RERA, visit states’ RERA portal.
- Click on ‘register’ as agent.
- You can register as an agent individually or under a company. For this, the application form should be filled, which differs from state-to-state. For instance, a realtor to be registered with RERA Delhi should fill form G. A realtor to be registered at Haryana should fill form REA-I.
- Submit the required documents.
- Pay the fees required for registration.
- Once you get the license, it should be renewed every five years.
What happens if a realtor is not registered with RERA?
- A realtor, not registered with RERA, will have to pay a penalty over Rs 10, 000 per day.
- No realtor can engage in real estate business without being registered with RERA. Similarly, a RERA-registered realtor cannot transact properties not registered with RERA.
- Once RERA registered, the agent will be responsible for the project. Any misinformation about the project will be the realtor’s responsibility. If found guilty, the realtor can be penalised, and his license can be revoked.
RERA registration: Fee
The RERA registration fee, for a realtor, differs from state-to-state.
- For instance, in Haryana RERA, one should pay Rs 25,000 for individual agent fee or Rs 50,000 if a real estate company is getting registered. This gets renewed by paying Rs 5,000 and Rs 10,000 respectively after five years.
- For Maharashtra RERA, one should pay Rs 10,000 for individual agent fee or Rs 1,00,000 for getting a real estate company registered. If a firm’s annual turnover is over Rs 40 lakh, it should apply for Goods and Services Tax (GST) registration.
RERA registration: Documents required
- Address proof of realtors
- IT Returns for the last three years
- PAN card
- Aadhar card
- Details of RERA registration in any other Indian state
How long does it take for agents’ RERA registration? The RERA authority gives the RERA registration within 30 days.
Housing News viewpoint
The real estate agent segment has seen a change in its working methods in India. Earlier, anyone looking for an entry in the realty segment would become a real estate agent. After a few years, he joins a brokerage firm, however, the rules have changed today. Like in the west, where a realtor becomes one after studying the subject and gets certifications, in India too it is mandatory for a real estate agent to get himself registered with regulatory bodies and get certifications. The system is well-defined today and every agent should take the onus of the transaction he is involved in, thus building the trust.
FAQs
Who are those clients who don’t take help from realtors for the property sale transactions?
Those not taking help from realtors for property sale transactions are listed as ‘for sale by owner’.
Is it illegal to practice for an agent without being RERA registered?
Yes, it is illegal. A penalty of Rs 10,000 per day may be charged.
What is the work of a real estate agent?
A realtor should communicate effectively. He should be in touch with the market and have negotiation skills.
Can a realtor practice on his own?
Yes, a realtor can practice individually, or join a brokerage firm.
How long does it take for a realtor to get RERA license?
After paying the fees and submitting the documents, a realtor will get the RERA license in 30 days.
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