Since 1 May 2016 the implementation of the Real Estate Act (RERA), it has become difficult for small brokers to remain in the business, to stay in business, it is mandatory for brokers to provide the right information to the state agencies. Due to RERA Act it may be possible about 75 per cent of small brokers business will be close in the next 3 years. Property business has become easy for big brokers, because they will get relief from the off-record business of local agents.
The Future of Small Brokers is in the Dark: According to the real estate agent Body National Association of Realtors India (NRA), 75 percent of the total brokerage may be closed in the next three years as regulatory reforms in the real estate market will increase. According to the Confederation of Real Estate Brokers Association of India, Nearly 50 percent of local real estate agents have future in darkness. Real estate business is more competitiveness in the world but more opportunity having in this business.
Number of Brokerage Firms Limited to 5 Million: The new system will exclude non Serious Real estate agents. By 2020, the number of such agents will be reduced from 2 million to 5 lakh. Due to RERA, a series of integration between brokerage firms will also be encouraged. It will be difficult to register the firms of non-Serious real estate agents due to the implementation of the RERA, as they will be charged according to the size of the business. However, the big players will get the benefit.
Responsible for Giving False Information: Brokers of all property under RERA have to register themselves with their real estate rules in their states. They will be held responsible for giving false information about any projects. If they fail to comply with the rules, they will have to pay a penalty of up to 5% of the total property cost.