The real estate industry plays a pivotal role in any economy, serving as a cornerstone for economic growth and development. Property brokers, also known as real estate agents, are key players within this sector, facilitating transactions between buyers and sellers. Recognizing the need for enhanced professionalism and expertise in this domain, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has taken a proactive step by making training and certifying agents across the state mandatory. Structured training and certification programs are designed for property brokers to enhance their competencies, empowering them to assist home buyers in making well-informed choices and decision-making.
Through its recent action to educate and officially endorse agents throughout the region, MahaRERA has provided an elevated status and credibility to the initial tier of the channel partners, bringing positive implications for the industry. By utilizing the PMLA Act to ensure the implementation of structured processes among prominent agents generating an annual turnover exceeding Rs. 20 lahks, MahaRERA has effectively established the limits for safe and secure operations within the sector. The mandatory knowledge and skills upgradation for property brokers will further professionalize the real estate industry and limit miss-selling.
The Role of Property Brokers
Property brokers act as intermediaries, connecting property buyers and sellers. Their role involves understanding the needs and preferences of clients, providing information about properties, negotiating deals, and ensuring smooth transactions. Given the significance of their role, it becomes imperative that property brokers possess a comprehensive understanding of real estate laws, regulations, market trends, and ethical practices.
The Need for Professionalisation
Historically, the real estate industry has suffered from a lack of standardization and professionalism. This has sometimes resulted in unscrupulous practices, misinformation, and inadequate services. By introducing mandatory knowledge and skills upgradation, MahaRERA aims to elevate the professionalism of property brokers, instilling a higher level of trust and confidence among customers.
Key Features of Mandatory Training and Certification
MahaRERA's initiative to professionalize property brokers through mandatory knowledge and skills upgradation involves several key features:
• Structured Training Programs: MahaRERA has collaborated with industry experts to design structured training programs that cover various aspects of the real estate sector. These programs include in-depth modules on legal frameworks, market dynamics, customer service, and ethical standards.
• Periodic Renewal: Property brokers are required to renew their registration periodically. To facilitate this, they must undergo refresher courses that update them on the latest regulations and trends in the real estate market. This ensures that brokers are equipped with the most current knowledge.
• Ethics and Professional Conduct: The training programs emphasize ethical practices and professional conduct. Property brokers are educated about the importance of transparent communication, fair dealing, and maintaining the confidentiality of client information.
• Consumer Protection: By ensuring that property brokers possess accurate and up-to-date knowledge, MahaRERA is indirectly safeguarding the interests of consumers. Informed brokers are less likely to engage in practices that could potentially harm clients.
Benefits of Mandatory Knowledge and Skills Upgradation
• Enhanced Trust: Consumers can have greater confidence in property brokers who have undergone professional training, leading to more transparent and trustworthy transactions.
• Reduced Legal Issues: Proper understanding of legal frameworks reduces the likelihood of legal disputes arising from misunderstandings or misinterpretations.
• Market Awareness: Brokers with updated market knowledge can provide clients with better insights into property values, investment opportunities, and potential risks.
• Industry Reputation: Elevating the professionalism of property brokers contributes to a positive reputation for the real estate industry as a whole.
Challenges and Future Outlook
While the mandatory upgradation of knowledge and skills is a commendable step, challenges like compliance enforcement, access to quality training, and managing costs must be addressed. Regular assessment and fine-tuning of the training programs will be essential to ensure their relevance.
In the future, this initiative by MahaRERA could serve as a model for other states and even countries looking to enhance professionalism in the real estate sector.
As per the data, to date, only 7.2% of RERA registered property brokers have appeared for the training and cleared the exam. Hence approximately 93% of real estate brokers are yet to complete the full training and clear the exam. ASAP RealTech is therefore taking all the initiatives to encourage the property broker agents to appear for the exam and complete the training certification.
As per data from MahaRERA, a mere 2,134 individuals have completed the registration process, with 423 candidates having taken the examination and 405 candidates having successfully passed. It is estimated that approximately 39,000 real estate agents are currently active in the state. These agents are mandated to fulfill the training requirements and acquire certification by the deadline of September 1, 2023, as per MahaRERA guidelines.
A circular dated January 10 was issued by MahaRERA, underscoring that agents failing to obtain the certification would be ineligible to continue working as agents after the specified date. As a prompt, MahaRERA has sent notifications to developers and agents, urging them to ensure that their agents complete the requisite certification, even for those who are already registered as agents.
MahaRERA's move to mandate knowledge and skills upgradation for property brokers marks a significant step toward professionalizing the real estate industry.
By equipping brokers with the necessary knowledge and ethical foundation, this initiative not only enhances consumer trust but also contributes to the overall growth and credibility of the sector. As other regulatory bodies consider similar measures, the real estate industry stands to benefit from a new era of transparency, competence, and ethical conduct.
Authored by: Swapnil Patil: Founder and CEO, ASAP RealTech
Swapnil Patil: Founder and CEO, ASAP RealTech |