How to Become a Real Estate Agent in India in 2023

How to Become a Real Estate Agent in India? One of the biggest problems faced by people trying to become real estate agents in India is the lack of clear and concise information on how to do so. Different government bodies in different states regulate the real estate industry, and the requirements for becoming an Indian real estate agent vary accordingly. This can make it difficult for people to know where to start and what to do to get licensed.

This problem arises because the real estate industry is complex and ever-changing. The industry’s laws and regulations are constantly being updated, and it can be difficult for people to keep up with the latest changes. Additionally, the real estate market is highly competitive, and there are many ways to become a real estate agent in India. This can make it challenging to know which path is right for them.

In this in-depth guide, we will provide clear and concise information on how to become a real estate agent in India in 2023, regardless of your state. We will help you navigate the complex process of becoming licensed and getting started in the industry. We will also provide you with the right tools and knowledge you need to succeed in your career in real estate in India. But first, let’s understand what a real estate agent is.

What is a Real Estate Agent?

Before diving deep into how to become a real estate agent in India, it is important to understand what is a real estate agent. A real estate agent is a licensed professional who guides home buyers and sellers through the process of buying or selling property. They typically work for a real estate brokerage firm but can also be self-employed.

The specific duties of an Indian real estate agent vary depending on the state, but they typically include:

• Creating and managing property listings
• Running marketing and advertising campaigns to sell properties
• Acting as representatives of buyers and sellers
• Showing properties to potential buyers
• Negotiating prices
• Preparing and reviewing contracts and paperwork
• Keeping clients up-to-date with market conditions
• Closing the real estate transaction
• Providing financial guidance such as mortgage pre-approval
• Networking with other real estate agents
• Managing clients’ social media/online presence

Real estate agents in India are typically paid a commission, which is a percentage of the property's sale price. The commission rate is typically split between the buyer's and the seller's agent.

Hiring a real estate agent can be valuable for people buying or selling a home. They can help you find the right property, negotiate a fair price, and navigate the legal paperwork involved in a real estate transaction.

How to become a real estate agent in India?

To become a real estate agent in India, follow these steps:

1. Meet the eligibility criteria: The eligibility criteria for becoming an Indian real estate agent vary from state to state. However, the general requirements are:
   • You must be at least 18 years old.
   • You must have completed your 12th or equivalent.
   • You must have a clean criminal record.
   • You must pass an examination to get a real estate license in India.


2. Complete the pre-license education: Most states require real estate agents to complete a pre-license education course. The course typically covers real estate law, ethics, and the real estate market.


3. Apply for a real estate license: Post-completing your pre-license education, you must apply for a real estate license in India from your state’s Real Estate Regulatory Authority (RERA). The application process and fees vary from state to state. It is necessary to get registered with RERA.


4. Obtain a Professional Tax Registration (PTR): In addition to RERA registration, you must also obtain a Professional Tax Registration (PTR) from the state government. The PTR is a tax that is levied on professionals, including real estate agents.


5. Join a real estate brokerage firm: You can join a real estate brokerage firm after obtaining your real estate license. The brokerage firm will provide you with the support and resources you need to succeed in your career in real estate in India.

Why is it Necessary to Get Registered with RERA?

If you are really interested in knowing how to become a real estate agent in India, the first thing you need to do is get registered with RERA.

The Real Estate (Regulation and Development) Act, 2016 (RERA) is a law enacted by the Government of India to regulate the real estate sector in India. The Act mandates all Indian real estate agents to register with the RERA in the state where they are operating.

There are several reasons why getting registered with RERA and getting a real estate license in India is necessary.

• To protect homebuyers: RERA registration helps protect home buyers by ensuring they are dealing with a legitimate Indian real estate agent. The registration process requires agents to provide certain information, such as their educational qualifications, experience, and financial background.


• To promote transparency: Agents must disclose certain information to home buyers, such as the project details, the terms of the sale, and the fees involved.


• To resolve disputes: RERA provides a mechanism for resolving disputes between home buyers and real estate agents. Home buyers can file a complaint with the RERA if a dispute arises. The RERA will then investigate the complaint and take appropriate action.


• To improve the quality of services The registration process requires agents to meet certain standards, such as having a professional indemnity insurance policy. This helps to ensure that agents are competent and reliable.

If you want to be a successful Indian real estate agent, getting registered with RERA and a real estate agent license is crucial. This will help you to protect home buyers, promote transparency, resolve disputes, and improve the quality of your services.

Getting registered is the best way to protect yourself, your clients, and your business.

What Are the Disadvantages of Non-registration for Real Estate Agents?

There are several disadvantages of non-registration under RERA for Indian real estate agents. These include:

• The agent will not be allowed to operate. A real estate agent who is not registered with RERA will not be permitted to sell or purchase properties on behalf of clients.
• The agent will be liable to pay a penalty. A real estate property dealer who is not registered with RERA and continues to operate can be fined up to Rs. 10,000 per day. The penalty can also be increased up to 5% of the price of the property being sold.
• The agent will not be able to avail of the benefits of RERA. An unregistered agent will be unable to avail of the benefits RERA provides, such as the right to receive payments from the developer and the right to withdraw from a deal if the developer defaults.
• The agent's reputation will be harmed. An unregistered real estate agent will be seen as less credible and trustworthy than a registered agent. This can damage the agent's reputation and make it difficult to attract clients.
• The agent may be held liable for any losses or damages that the client incurs due to the agent's actions.
• The agent may be barred from practising as a real estate agent.
• The agent may face criminal charges, such as fraud or misrepresentation.

RERA Guidelines for Registration of Real Estate Agents and Brokers

The objective of this registration requirement is to protect the interests of the buyers and sellers of real estate properties by ensuring that the agents and brokers are qualified and have the necessary knowledge and skills to facilitate real estate transactions.

The RERA registration requirements for real estate agents and brokers vary from state to state. However, the following are some of the common requirements:

• The agent or broker must be a citizen of India.
• The agent or broker must have a valid PAN and Aadhaar cards.
• The agent must have a bachelor's degree or equivalent.
• The agent or broker must have completed a real estate training course and passed a certification exam.
• The agent must have at least two years of experience in the real estate sector.
• The agent or broker must have a valid business license.
• The agent or broker must not have been convicted of any real estate-related crimes.

RERA Certification Process for Real Estate License in India

The RERA registration process for real estate license in India varies from state to state. However, the following are the general steps involved:

The RERA registration process is as follows:

1. Check the eligibility criteria. Not everyone can register as a real estate agent. You must meet the eligibility criteria set by the RERA authority in your state. These criteria may include having a bachelor's degree, completing a real estate course, and having a minimum experience of 2 years in the real estate industry.


2. Gather the required documents. The required documents may vary from state to state. However, some common documents include a copy of your PAN card, Aadhaar card, educational qualification certificates, experience certificates, etc.


3. Fill out the RERA registration form. The RERA registration form is available on the website of the RERA authority in your state. You must fill out the form carefully and provide all the required information.


4. Pay the registration fee. The registration fee is also payable to the RERA authority in your state. The amount of the fee may vary from state to state.
5. Submit the application form and documents to the RERA authority. You can submit the application form and documents either online or offline.
6. Track your application status. After submitting your application, you can check its status on the respective state's RERA authority's website.

Your RERA registration certificate will be issued once your application has been approved.

The RERA enrolment duration for getting a real estate agent license is 5 years in most states of India. After the license is issued, it is valid for five years. However, the agent can renew the license for another 5 years by submitting an application 60 days before the expiry of the current license.

Documents Required for RERA Registration to Become Real Estate Agent in India

Here are the documents required for RERA registration to become a real estate property dealer in India:

1. Properly filled application form. The application form is downloadable from the website of the respective RERA authority.


2. Authenticated copy of PAN card. The PAN card of the real estate agent or the authorized person.


3. Authenticated copy of address proof. The address proof of the real estate agent or the authorized person, such as Aadhaar card, voter ID card, passport, or driving license.


4. Photograph. A recent passport-size photograph of the real estate agent or the authorized person.


5. Name, contact details, and address of the real estate agent. The name, contact details (phone number and email address), and address of the real estate agent or the authorized person.


6. Name, type of enterprise (company, proprietorship, societies, partnership, etc.), and registered address of the enterprise.


7. For a real estate agency, particulars of the agency. The Memorandum of Association (MoA), byelaws, and Articles of Association (AOA) of the real estate agency, if applicable.


8. Registration details in any other state (if applicable). If the real estate agent is already registered with RERA in any other state, then the registration details of that state must be submitted.


9. Details of any civil/criminal cases pending against the real estate agent or their company.


10. Last three years' Income Tax Returns. The previous three years' Income Tax Returns of the real estate agent or the authorized person.

In addition to these documents, the RERA authority may require other documents such as a bank statement, a business license, or a professional tax registration certificate. The documents required may vary from state to state, so checking with the respective RERA authority for the latest requirements is advisable.

Cost Involved in Becoming a Real Estate Agent in India

The following are the general costs that you can expect to incur:

• RERA registration fee. This is the fee that you need to pay to the Real Estate Regulatory Authority (RERA) to obtain a license to practice as a real estate agent. The RERA registration fee for an Indian real estate agent license varies from state to state. In Karnataka, the registration fee for an individual real estate agent is Rs. 25,000. For a firm or company, the registration fee is Rs. 50,000.

  Here are the RERA registration fees for real estate agents in some other states:

  • Maharashtra: Rs. 10,000 for an individual and Rs. 1,00,000 for a firm or company.
  • Tamil Nadu: Rs. 25,000 for an individual and Rs. 50,000 for a firm or company.
  • Delhi: Rs. 10,000 for an individual and Rs. 50,000 for a firm or company.
  • Uttar Pradesh: Rs. 25,000 for an individual and Rs. 50,000 for a firm or company.
  • Haryana: Rs. 25,000 for an individual and Rs. 50,000 for a firm or company.


• Professional tax registration fee. This is a tax that the state government imposes on professionals, including real estate agents. The professional tax registration fee varies from state to state but is typically around Rs. 2,500 to Rs. 7,000 annually.


• Course fee. There are several real estate courses from where you can get an overview of the real estate business in India. The cost of these courses are different, but they typically range from Rs. 5,000 to Rs. 20,000.


• Marketing & advertising expenses. To succeed as a real estate property dealer, you must market your services and attract clients. This can involve costs such as printing business cards, creating a website, and running advertising campaigns.

In addition to these costs, you may also incur expenses such as travel, accommodation, and meals when showing properties to clients.

Must Have Qualities to Become a Real Estate Agent in India

Until now, we discussed the complete procedure on how to become a real estate agent in India, but just having a real estate license in India is not enough. You need to develop some key qualities to succeed as a real estate agent in India:

• Communication skills: Real estate agents must explain complex parts clearly and concisely, both verbally and in writing, as well as properly listen to and understand the needs of their clients. This is a crucial quality when learning how to become a real estate agent in India.


• Negotiation skills: Real estate agents must negotiate effectively with sellers, buyers, and other agents. They need to be able to understand the bargaining power of each party involved, and they need to be able to reach agreements that are fair to everyone.


• Problem-solving skills: Real estate agents will encounter many problems in their work, such as finding properties that meet the needs of their clients, dealing with paperwork, and resolving disputes. They need to be able to think critically and creatively to solve these problems.


• Organizational skills: Real estate agents need to be able to keep track of a lot of information, such as the properties they have listed, the clients they are working with, and the paperwork involved in a real estate transaction. They need to be able to stay organized and efficient to succeed in their career in real estate in India.


• Time-management skills: Real estate agents must manage their time effectively. They often have to juggle multiple tasks at once, and they need to prioritize their work in order to meet deadlines.


• Ethics & Integrity Real estate agents need to be honest and trustworthy. They need to act in the best interests of their clients, and they need to avoid any conflicts of interest.


• Knowledge of the Indian real estate market: Real estate agents must have a good understanding of the real estate market in the area where they work. They need to know the prices of properties, the availability of properties, and the trends in the market.


• Networking skills: Developing relationships with other real estate agents, lenders and other industry professionals is crucial for real estate agents These relationships can help them find properties for their clients, get referrals, and close deals. Additionally, joining groups like the National Association of Realtors (NAR), the Association of Certified Realtors in India, and the All India Real Estate Agents Association will help enhance your network globally.

6 Best Tips to Become a Successful Real Estate Agent in India

Apart from knowing how to become a real estate agent in India, here are some tips that are going to help you succeed in this industry:

• Get involved in the real estate industry. Attend real estate, meets, seminars and workshops and network with other real estate professionals.


• Build your knowledge of the real estate market. Keep yourself updated on industry publications and the latest trends.


• Develop your communication and negotiation skills. These are essential skills for a successful real estate agent.


• Be patient and persistent. It takes time and consistency to build a successful career in real estate in India.


• Provide excellent customer service. Don’t just learn how to become a real estate agent in India; instead, learn how to become a trustworthy real estate agent. Be responsive to your clients' needs, and go the extra mile to help them find the perfect property.


• Learn the local language. Learning the language will help you communicate effectively with potential clients and show you are serious about doing business in India.

FAQs

How long does it take for a real estate agent to get registered?

The time it takes for a real estate agent to get registered in RERA typically takes 30-60 days after all required documents and fees are submitted.

What is real estate agent salary in India?

The entry level real estate agent salary in India is between INR 1 lakh to INR 7 lakh per year, with an average annual income of INR 2.5 lakh.

Is real estate agent a good career in India?

Yes, real estate agent can be a good career in India. The real estate market in India is expected to grow at a CAGR of 11% from 2022 to 2027. You can earn a good income as a real estate agent.

What is the difference between a real estate agent and a broker?

The difference between an Indian real estate agent and a broker in India is that a broker is a professional who is licensed and can work independently or may employ agents. An agent, on the other hand, must work for a broker.

What is Real Estate Agent registration fees?

The real estate agent registration fees for individuals is INR 25000 for most states, and for non-individual it is in the range of INR 50000 to INR 200000 in different states.