Purchasing a property requires a proper understanding of the market and careful selection of a property based on one’s requirements. Real estate agents or brokers play a crucial role in helping prospective buyers find the right property of their choice. Real estate agents serve as middlemen between sellers and buyers. They help negotiate, document, and finalise property deals.
Check why you should hire a real estate agent to sell property
To survive in a versatile and competitive real estate market, real estate agents must have a thorough understanding of the market, consumer behaviour and marketing innovation ideas. How do you become a real estate? This is a common question many people ask when looking to pursue a career in real estate. Some essential skills for becoming a successful real estate agent in India include excellent communication, negotiation, and networking skills. In this article, we share a useful guide on how to become a property dealer in India.
What is a real estate agent?
A real estate agent or property dealer is a licensed professional who connects seller and buyer and helps them finalise real estate transactions. Property agents can be self-employed or associated with a real estate brokerage firm. These professionals have sound knowledge of the industry and guide buyers from property search to deal finalisation. They typically charge a fee, which is a percentage of the property sale price.
Responsibilities of a real estate agent
- Scheduling appointments with buyers or sellers
- Assessing client’s financial needs
- Updating property listings
- Browsing through listings and finding properties
- Responding to emails and phone calls
- Conducting real estate market analysis
- Preparing documents (leases, deeds, contracts, etc.)
- Staying updated with market trends and best practices
- Networking with local businesses and prospective clients
- Organising campaigns
- Preparing and distributing promotional materials
- Handling social media and managing online presence
Types of services that real estate agents provide
- Purchase or sale of residential and commercial properties
- Purchase or sale of properties for rent and investment purposes
- Services for new, resale, ready-to-move and under-construction properties
How to become a real estate agent?
Meet the eligibility criteria
There is no specified qualification to pursue a career in real estate, but having good networking and negotiating skills can be an advantage.
- Individuals must have adequate knowledge of the real estate industry.
- They should be 18 years or above as per the applicable laws in the state.
- They should have a clean criminal record.
- They must have cleared the real estate license examination. Most states require agents to complete pre-license education. The course covers real estate law, ethics and real estate market.
Research and explore
Like in other professions, an individual must acquire knowledge of the real estate industry before starting a career as an agent. One can connect with seasoned professionals and real estate experts or search the internet to gather valuable knowledge of the industry.
Acquire relevant education and skills
Typically, there are no mandatory educational qualifications to become a real estate agent. However, one can enrol in professional courses designed for real estate agents. A BBA degree course in real estate and urban infrastructure or an MBA in real estate management can be an advantage in helping gather knowledge about the industry. Real estate agents can also specialise in residential properties, commercial properties and industrial real estate. One can select their field based on their interest.
Get the necessary licenses and registration
One must meet the mandatory requirements for becoming an agent, such as registering their company, getting a real estate agent license, Professional Tax Registration (PTR), GST registration, etc. Professional tax is the tax imposed on all types of trades and professions in India. The state tax department issues a PTR to the agent by levying a fee that differs from state to state. One must also get the registration certificate renewed annually.
As per the Real Estate (Regulation and Development) Act 2016, all real estate agents must register themselves with the state-level Real Estate Regulatory Authority and obtain the RERA registration number/ license. The license is valid for five years. The criteria pertaining to licensing and registration in India may differ from state to state.
Create a plan
After obtaining the real estate agent license, one must create a plan for their business. It is beneficial to be associated with a real estate firm in the initial days to gather experience before starting your own real estate agency. One can partner with existing real estate agents, take franchises of reputed companies, and become an independent consultant or a commercial broker. However, an essential aspect to consider when starting your journey is to decide on the path to follow, set up a budget, develop a business model and define your objectives.
Promote your business
Create plans to market your business. Having an online presence can be greatly beneficial for your business. Consider creating a website listing your services and contact details. Adding your license information and testimonials from clients helps strengthen your credibility. Create plans to reach out to your target audience through different social media platforms and share relevant updates about the real estate industry. Choose paid online and offline advertisements to promote your services. Moreover, word-of-mouth marketing and referrals work well for real estate agents. Request your customer base to refer you to their friends and families.
Build your network
Real estate agents can look to boost their career from networking. Build your connections and gain knowledge about industry trends. You can participate in seminars, conferences, property agent clubs and real estate gatherings to network with other real estate agents.
Skills required to become a real estate agent
- Communication: Real estate agents are required to interact with customers by phone, email, or in person and help them find a property based on their requirements. Thus, having good verbal and written communication skills is extremely essential for real estate agents.
- Negotiation: Property agents must have the knack to negotiate in order to get attractive commissions for the sales. They are required to negotiate with the clients on behalf of the owner or negotiate with the owner for buyers.
- Integrity: In their effort to earn attractive, lucrative commissions, real estate agents must stay honest with their buyers. They must share correct information with their clients, which ensures transparency and helps build long-term relationships.
- Problem-solving: Real estate agents are required to solve various issues their clients might face, such as finding suitable properties, processing documents or closing deals. Effective problem-solving skills can enable agents to identify solutions to various problems.
- Persistence: Home seekers may be looking at several options. An agent may also be required to show their clients a number of properties before the selection is made. Persistency is an important trait that help them achieve their goals.
- Organisational skills: Real estate agents are required to multitask, such as handling paperwork, following up with their clients, etc., and they require organisational skills.
- Time-management skills: They must know how to manage their time effectively and prioritise various tasks to meet deadlines.
Some additional skills that can help them in their professional include:
- Learning the local language to help them communicate effectively with their potential clients
- Deliver excellent customer service and making efforts to find properties for their clients
RERA Guidelines on Registration of Real Estate Agents
The Real Estate (Regulation and Development Act), 2016 (RERA) aims to regulate the real estate sector in India and ensure transparency by protecting the interests of buyers and regulating the sector that was earlier heavily in favour of the builders. Real estate agents are required to register themselves under RERA. Moreover, it ensures fair transactions between property buyers and sellers through licensed and responsible agents.
According to the RERA Act, real estate agents must comply with the various guidelines, which include:
- Adhering to the various provisions of the act
- Not facilitating the buying or selling of unregistered properties.
- Avoid unfair commercial practices such as making false and misleading statements, orally or in writing, or supporting advertisements of services that may be unlikely to be delivered.
- Facilitating the possession of various documents and information to which a buyer is entitled when booking a property.
Why is it necessary to get registered with RERA?
- To protect homebuyers: RERA registration is a must as it ensures that buyers interact with authorised real estate agents, thus protecting their interests. During registration, the agents must share educational qualifications, experience, financial background, etc.
- To promote transparency: Registered agents are bound by the RERA rules and are required to share complete information with buyers, such as project details, terms of the sale, fees, etc.
- To resolve disputes: RERA is the authority that resolves disputes between home buyers and real estate agents. Buyers can file a complaint with RERA if a dispute arises, and the authority will take suitable action.
- To improve the quality of services: Agents must meet specific criteria and standards during registration, which makes them competent and reliable.
Disadvantages of non-registration as per RERA
- Agents cannot operate their business: A real estate agent is not permitted to operate without RERA registration.
- Penalty will be imposed: In case an agent operates their business without RERA registration, a penalty of Rs 10,000 per day is imposed in case of any defaults. The penalty price may be increased up to 5% of the price of the property being sold.
- Agents cannot engage in transactions: The agent will not be allowed to engage in the sale of properties or any real estate business. A penalty of up to 5% in case of non-compliance with the RERA orders is levied. Moreover, one year of imprisonment is applicable in case of indulgence in any unfair trade practice.
- Agents cannot avail of the RERA benefits: Unregistered agents will not be able to avail of the benefits under RERA. This includes the right to receive payments from the developer and the right to withdraw from a deal if the developer defaults.
- Agent’s reputation will be harmed: Unregistered agents will not be seen as trustworthy and may find it difficult to attract clients.
RERA enrolment duration
A dealer’s real estate authority (RERA) license becomes active from the issue date. The permit can be extended for another five years after filling out a form 60 days before the expiration date.
RERA certification process
- Check eligibility: The individual should meet the eligibility criteria defined by the state RERA. This can include having a bachelor’s degree or a real estate course, minimum experience of 2 years, etc.
- Gather required documents: The documents required for certification may differ from state to state. These include PAN card copy, Aadhaar card, educational qualification certificates, experience certificates, etc.
- Submit RERA registration form: The RERA registration form can be accessed from the official RERA website in your state. Fill and submit the form along with documents online or offline.
- Pay registration fee: The registration fee must be paid to the RERA authority in your state. The amount may vary from state to state.
- Track application status: Once the application is submitted, applicants can check their status on the respective state’s RERA website.
RERA registration for real estate agents: Documents and details required
- Duly filled application form
- Copy of PAN card
- Name, contact information, photographs and address of the agent and directors or partners
- Copy of address proof, email address and phone number of the area from where the agent will operate the business
- Income Tax Returns of recent three years
- Name, type of enterprise (for example, company, society, proprietorship, partnership, etc.), and registered address of the enterprise
- In case of real estate agencies, particulars such as the MoA (Memorandum of Association), byelaws, and AoA (Articles of Association)
- Registration details in any other state, if applicable
- Details about any criminal/civil cases pending against the agent or the company
- Information about real estate projects, promoters and advertisers with whom the agent has associated for business in the past five years
- Copies of acknowledgement receipts, letterheads and rubber stamp images
How to obtain a real estate license?
- Visit the official RERA website in your state.
- Register as an individual agency or a business. Fill out the application form and provide the supporting documents. The documents include ITR for the last three years, address proof, PAN Card, registration details in any other state, etc.
- Complete the payment of the real estate license fee, which varies from state to state. In Maharashtra, the license fee is Rs 10,000 for individuals and Rs 1 lakh for businesses.
- Real estate agent license will be issued within 30 days from the date of application.
Tips to become a successful real estate agent
- Maintain connections with past clients: Satisfied customers are likely to give referrals. Thus, make sure to connect with them and get their testimonials published on your website and social media accounts.
- Ensure transparency: It is essential to share complete information with your clients. For example, if you are unable to ascertain the builder’s track record or if there are legal issues related to the property, communicate with the buyers so that they do not get involved in a stalled project.
- Serve as a consultant: It helps if you focus on understanding your client’s requirements and shortlisting options based on their preferences instead of focusing too much on the sales.
- Create an online presence: In today’s scenario, having a strong online presence is a must, as a majority of the buyers search for properties online. Start with a simple website or a Google Business listing and improve upon it. Make sure the website has a call-to-action button, such as a contact form or WhatsApp number, so that customers can directly reach out to you.
- Networking: Some clients may be tough to deal with or you may not have the options they are seeking. Instead of turning down these clients, you can approach your peers to help your clients find the right option.
Cost involved in becoming a real estate agent
The cost involved in becoming a real estate agent includes:
- RERA registration fee to be paid to RERA to obtain a license to practice as a real estate agent. It varies from state to state.
- The cost of real estate courses, which one may plan to pursue, typically ranging from Rs 5,000 to Rs 20,000.
- The cost involved in marketing and advertising your services to attract clients. This includes the costs of printing business cards, creating a website, conducting advertising campaigns, etc.
RERA registration fees for real estate agents in some other states:
| State | Cost for individuals | Cost for firm/company |
| Maharashtra | Rs 10,000 | Rs 1 lakh |
| Tamil Nadu | Rs 25,000 | Rs 50,000 |
| Delhi | Rs 10,000 | Rs 50,000 |
| Uttar Pradesh | Rs 25,000 | Rs 50,000 |
| Haryana | Rs 25,000 | Rs 50,000 |
A professional tax registration fee is levied by the state government imposed on professionals, including real estate agents. The annual tax varies from state to state and is around Rs 2,500 to Rs 7,000.
FAQs
What if a broker is not registered with RERA?
If a real estate broker/ agent conducts business without registering with RERA, it is a violation of the RERA rules by a real estate agent. This may lead to suspension of registration or license, a penalty of Rs 10,000 per day and a maximum of up to 5% of the value of the deal. Without registration, the agent will not be authorised to sell properties or engage in real estate business.
How long does it take for a real estate agent to get registered?
It takes around 30-60 days from the time the application is submitted for a real estate agent to get registered with RERA.
What is the average salary of real estate agents in India?
The salary for entry-level real estate agents in India ranges between Rs 1 lakh to Rs 7 lakh per annum. The average annual income of Rs 2.5 lakh.
Is a real estate agent a good career in India?
With the growth of the real estate industry in India, pursuing a career in real estate can be beneficial as agents can earn good commissions or fees. As per reports, the real estate market in India is expected to grow at a CAGR of 11% from 2022 to 2027.
What is the difference between a real estate agent and a broker?
A real estate broker is a licensed professional who can work independently or may employ agents while an agent works for a broker or brokerage firm.
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com |