Karnataka Realtors Seek Single Pan-India Licence

Karnataka Realtors Seek Single Pan-India Licence
09/08/2021 , by , in News/Views

The number of real estate brokers in the state could run into several thousands. Yet, almost five years after Real Estate Regulation and Development Act, 2016 was enforced, only about 2,787 such agents have registered under Karnataka Real Estate Regulatory Authority (K-RERA).

The Act not only makes it compulsory for agents to register, but also binds them to deal with only RERA-registered properties. The reasons for poor registration range from lack of awareness about the mandatory requirement to the fear of being held accountable. But one of the major reasons why many leading brokers are not coming forward, according to some realtors, is because of an unscientific licensing system.

Ayub Khan, president, Bangalore Realtors Association of India (BRAI), said: “Realtors today work in multiple cities and as per RERA they have to apply for licence in every state they operate. This is creating problems and is unnecessarily burdening and affecting secondary sales. Although RERA is a central act, each state has a different fee ranging from Rs 1-2 lakh. An advocate or CA is allowed to practise in any part of the country without any such hindrance, so why a different set of rules for realtors,” he asked.

With several brokers reeling under pressure due to all-time low business (nearzero secondary sales in many cities) in the past one year and more owing to a series of lockdowns, the Indian chapter of International Real Estate Federation (FIABCI) has taken up their cause now.

It has written to Prime Minister Narendra Modi, seeking a single licence for brokers to operate throughout the country irrespective of the state they belong to.“This will enable realtors and all brokers to carry out business across all states seamlessly,’’ said Farook Mahmood , founder president, FIABCI. Currently, he said, “Realtors have to apply for licence to the respective state governments for primary sales and cannot operate beyond the jurisdiction of the licence being granted.”

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