Starting January 1, 2024, Maharashtra Real Estate Regulatory Authority (MahaRERA) has mandated property agents to obtain a 'Real Estate Agent Certificate of Competency' by passing the MahaRERA exam, affecting fresh registrations and renewals. Introduced in January 2023, the initiative aims to enhance estate agents' knowledge of property laws and regulations, fostering transparency in real estate transactions. While estate agents appreciate the move, some suggest a more encouraging approach and extended timelines for compliance to accommodate the industry's transition.
Starting from January 1, 2024, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has mandated that all property agents must possess a valid 'Real Estate Agent Certificate of Competency' obtained by clearing the MahaRERA exam. Without this certification, agents will be ineligible for fresh registration or the renewal of existing registrations.
In January 2023, MahaRERA took a proactive step by introducing a mandatory exam for estate agents, requiring them to undergo training and successfully clear the exam. The intention behind this initiative is to equip agents with comprehensive knowledge of the legal aspects and regulations governing property transactions, considering their crucial role as intermediaries between buyers and sellers. It aimed to enhance the knowledge of estate agents regarding property laws, rules, regulations, and sales procedures, thereby fostering transparency and accountability in the real estate sector
Under the new order, developers and promoters of real estate projects, as well as property firms, are urged to engage only those agents who possess a valid competency certificate. Failure to comply may result in suitable actions being initiated against the defaulting parties. This measure emphasizes the importance of ensuring that property transactions are facilitated by qualified and knowledgeable agents, ultimately safeguarding the interests of investors.
Estate agents have responded positively to the initiative, recognizing its potential to enhance the professionalism of the industry. Pallavi Upadhaya, an estate agent operating in South Mumbai and Pune, commends MahaRERA's move, stating that it will help filter out unqualified individuals from the system. She emphasizes the significance of protecting the interests of investors, given that real estate constitutes a substantial investment for individuals across income strata. Upadhaya highlights how the training and exam process equips agents with the necessary knowledge to adhere to laws, rules, and regulations, ensuring accountability and accurate communication of the developers' visions to buyers.
Amit Shah, another broker based in Mumbai's Prabhadevi area, acknowledges the positive impact of the new order in terms of enhancing brokers' understanding of rules, regulations, and legalities in property sales. However, while recognizing the benefits of the certification process, Shah advocates for a more flexible time frame to allow agents to meet the new requirements gradually. He notes that out of the 44,000 registered estate agents with MahaRERA, many have yet to appear for the exam, and providing adequate time would facilitate broader compliance.
The underlying sentiment is that encouraging compliance through positive reinforcement and extending the timeline for implementation would be a more effective approach in achieving industry-wide adherence to the certification mandate.
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