Real estate bill, decoded

The amendment of the Real Estate (Regulation and Development) Bill, 2013, to include real estate agents and registrations of realty projects in the Central Advisory Council, is likely to introduce transparency and accountability in the real estate sector.

The amendment of the Real Estate (Regulation and Development) Bill, 2013 to include real estate agents and registrations of realty projects in Central Advisory Council is likely to bring in transparency and accountability in the real estate sector. This move is now expected to assist the government in understanding the issues better that prevail in the real estate industry. The same bill also lays down the proposal for the formation of the Real Estate Regulatory Authority, which will act as a body to defend the interests of real estate agents, promoters as well as the allotters. Shammi Sethi, director, Rare Earth Strategic Real Estate Consultant, says, "Making real estate agents a part of the Central Advisory Council is great news as the government recognises brokers as key stakeholders of the industry, but there should be a bigger plan and the idea should recognise real estate agents as true professionals."

Brotin Banerjee, MD and CEO, Tata Housing Development Company, adds, "Since real estate agents deal closely with the homebuyers, they are privy to the customer expectations regarding the real estate transactions. By including them in the council, the government will be in a better position to discern the consumer sentiment regarding the real estate market." Experts from the industry are of the view that in principal, this is a fantastic step being taken by the government, as the first step in solving any issue is recognition. According to Jay Patel, CEO, IndiaMLS, "Until recently, the voice of the real estate brokers and agents had never been considered in matters relating to the real estate industry. For an industry that accounts for almost 10 percent of the nation's GDP, recognising one of the most important players in the sector was long overdue. An important follow-up action in recognising the real estate brokers as professionals is enacting some form of licensing, regulation, or qualifications necessary to become a real estate professional." The genuine real estate agents in India want and deserve this recognition.Without it, anyone can claim to be a broker, as it is the case today. Numerous countries such as Philippines require brokers to be licensed, and other countries such as Uganda are planning to put in place regulation in the near future.

Ram Raheja, director of S. Raheja Realty, says, "Now, the industry would get insight into the ground level realities, which these agents experience from dealing with developers and consumers on a dayto-day basis. Now, there would be an assurance of transparency in the purchasing process, which will benefit both, the real estate companies and consumers." Sanjay Dutt, managing director, Cushman and Wakefield (India), informs, "Now, this body would be responsible for advising the central government on issues related to the real estate industry such as policy recommendations, protection of consumer interests, grievances, redressal and the overall development of the real estate industry." Further, the Real Estate Bill seeks to establish the Real Estate Regulatory Authority (RERA) at the state level for the regulation and development of the real estate sector, as well as to defend the interests of the consumer, real estate agents and promoters.This move would assist the government to better understand the issues prevailing in the real estate industry as the amendment would place property brokers as 'stakeholders' in the highly fragmented real estate sector. Rohit Poddar, managing director, Poddar Developers, says, "Real estate agents are important stakeholders in the real estate space. If one professes to be inclusive of all stakeholders, it is high time that they also have a seat at the table."

By including the real estate agents, the government seeks to gain a better comprehension concerning issues that real estate buyers face when it comes to real estate transactions, and to the real estate business as a whole. Ramesh Nair, COO-business and international director, JLL India adds, "Brokers are better placed to understand such issues, as they have direct dealings with end users of real estate. It is clear that the government depends of receiving relevant information from the most informed sources, in order to formulate its policies."

Chandrabhan Vishwakarma, director, Maharashtra Property and Interior says, "It is a very good move. Now onwards, we can highlight the key issues on which the government can work. However, we have been suggesting to set up the registration format and minimum criteria for property brokers where they need to have minimum educational qualification, if they want to raise their voice and concern for the real estate sector."

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