A real estate agent or broker facilitates transactions between a builder and a prospective buyer. It is a lucrative and amazing career option for those having a penchant for real estate and the necessary soft skills like the art of negotiating etc. To become a licensed real estate agent in India, it is necessary to register under the Real Estate(Regulation and Development Act),2016(RERA) and obtain a real estate license.
The real estate business has become increasingly organized in India, especially since the introduction of the Real Estate (Regulation and Development Act),2016 (RERA).The Central Act mandates the registration of property agents with the concerned State-level real estate regulatory authority to obtain the RERA registration number which is usually valid for five years. Real estate licensing compliance in India usually follows a protocol issued under the RERA (Real estate Regulation and Development Act,2016).
A real agent is an individual who helps facilitate property-related transactions between a seller and buyer, who might work independently or in association with an agency/In any case, the agent or the agency must be registered with the State RERA with all relevant documentations done and formalities completed.
If the agent is helping a potential homebuyer, the responsibility will primarily include looking for suitable options as per the decided budget, scheduling meetings with the seller, checking the legal viability of the property in question, negotiating the price, assisting with home loan options if required and carry out the sale and registration process.
In case the agent is looking for suitable buyers for a property, the responsibilities include putting up necessary advertisements of the property, looking for buyers, responding to customer enquiries, getting the best possible price and preparing paperwork for ownership transfer. In both cases, the real estate agent or the real estate agency charges a fee or commission.
The real estate broker or agent who is registered with a private company or firm and is working in broke raging the real estate brand licensing deals should be well aware of all the terms and conditions of the luxury real estate brand licensing agreement. It is essential for a real estate agent to have an understanding of the luxury real estate sector, prevailing market trends in an area and relevant State or government policies.
The luxury real estate brand expansion in India depends on the licensing agreements and partnerships entered with the developer. A real estate agent is responsible for real estate licensing agreement negotiations in India. The registration process for the real estate agent begins with visiting the official website of RERA, of the respective state from which the individual or agency wants to operate from. They should then fill out the necessary application form on the website and pay the associated fee. The registration fee varies as per State and it is different for a single agent and an entire agency. Relevant documents should be submitted for proper official verification, vigilance and scrutiny.
Typically, the licensing and registration of property agents requirements in India vary across States. For instance, in Haryana, realtors need to pay a license fee of Rs 25,000 whereas a real estate company has to pay Rs 50,000 to obtain a RERA license which can be renewed after five years by paying a fee of Rs 5,000 in case of individuals and Rs 10,000 in case of company. In Bangalore, company has to pay Rs 2 lakh to obtain the license whereas the fee for individuals remains the same. In Maharashtra, the fee for obtaining the license is Rs 10,000 in case of individuals and Rs 1 lakh in case of registration of a real estate brokerage firm. In case, the aggregate turnover of the realty firm exceeds Rs 40 lakh then, the agent needs to apply for Goods and Services Tax (GST) registration as well.
A real estate broker in India must also apply for Professional Tax Registration (PTR),which is a tax imposed by the State for carrying out professional services in that province. The agent can visit the concerned tax department of the State and apply for PTR by paying a fee which usually varies between Rs 2,500 and Rs 7,000, depending upon the State. The documents needed for verification include, particulars of the applicant, his income tax returns for the last three years, copy of PAN and a copy of an authenticated address-proof.
Some soft skills required for real estate professionals include negotiating and communicating, patience and tactfulness in dealing with the prospective parties-the developer and the licensing brand and the customer, the buyer.
Skilled real estate professionals and agents make a significant contribution to luxury real estate license selection in India with their knowledge of real estate and proficient skills in negotiating the licensing agreement to the developer or the buyer. They can be an instrumental anchor with their accurate analysis of the situation with respect to both the parties, legal skills in conducting the real estate transactions as well as in brokeraging and fixing up licensing agreements as well.
Skilled real estate agents are the need of the hour as the real estate is expanding at a rapid pace. To keep up with the smooth functioning of the real estate transactions, brand licensing deals and for business communication between the developer, builder, licensing brand and the customer, agents are essential. For all B2B and B2C business communications in real estate, qualified agents or brokers are an urgent requirement.
7 benefits of having a real estate license
A real estate brand license is a premium opportunity to enter the domains of the real estate industry, leverage the brand name of the licensing brand and reap substantial benefits from a brand association. A real estate brand license rewards tremendous potential in the lucrative sector of luxury real estate and facilitates the developer as well as the licensing brand to exercise a plethora of choices regarding the real estate development.
The several benefits of having a real estate license are enlisted below:
- Become the leader in real estate industry – A premium real estate brand license is the perfect option to exercise rights in brokerage and luxury real estate property transactions. A real estate brand license provides ample opportunities to connect various licensing brands and developers regarding the development of several luxury real estate projects. Real estate licenses are crucial in the formulation of licensing strategy for real estate developers in India wherein the legal technicalities of the licensing agreement are explained to the developers and also the usage of the intellectual property of the licensing brand is conveyed to them.
- Build your network with real estate experts- A real estate brand license helps the developer to connect with the top-most brands in the real estate industry, leading to a diverse network formation across cross-marketing channels. The licensing brand gets the benefits of expanding their business to newer horizons and thereby increasing the revenues of the company without being much involved in the sales aspect. The bottom line is that a real estate license firstly ensures the real estate project from any kind of fraudulent activities, too as well as assigns the brand name to the luxury property, gaining commercial appreciation and recognition for it.
- Assured commercial success of the real estate project – Real estate licensee management in India is a part of the brand licensing for the development of luxury real estate projects. The real estate thus constructed, designed and developed by the builder or the developer in sync with the guidelines laid down by the licensing brand is assured of a premium return in the real estate market, fetching global accreditation and recognition to it.
- Increasing the ROI associated with the luxury property- The return on initial real estate investment gets manifold with the brand name and brand value of the licensing brand. Licensing ROI in real estate of India is mutually beneficial and increases tremendously in worth with the comprehensive support of a real estate brand license. Returns on luxury property are enhanced with a luxury brand name that attracts potential investors and customers and elevates the credibility of the real estate development and enhances its estimated value.
- Preventing fraudulent activities in real estate management- Real estate licensing legalities in India involve imposing legal technicalities regarding the usage of the brand logo, design, trademark and other intellectual property by the licensee brand. The licensing brand is simultaneously bound to grant the usage of its intellectual property to the licensee, albeit in a guided way. The real estate brand license thus involves two-party legal contracts without any third-party interference and is relatively free from any kind of possible fraud.
- Gaining a global recognition for your real estate- The brand licensed real estate project gains in worth, recognition and prestige in the real estate market. The association with an established, globally recognized licensing brand say Fashion TV instantly uplifts the prospects of the licensee or the real estate developer. The licensee can reap the benefits of the brand license and gain substantial leverage across the nation as well as gain global acceptance and recognition for the luxury property.
- Expanding business horizons for both the developer and the brand- A real estate brand license facilitates the B2C, as well as the B2B business communication for both the licensing brand and the licensee developer. The licensing brand gets the exclusive privilege of entering into newer business markets and tap into their unexplored potential without having to strategize or invest into business. On the other hand, the licensee gains access to a diverse network of real estate investors and brands and a chance to consolidate his position in the real estate market.
Thus there are innumerable benefits of having a real estate brand license for both the licensing brand as well as the licensee developer. A real estate brand license leverages the prospects of the luxury real estate development and elevates its net worth in the real estate market.