RERA set to rein in real estate agents
When realty prices hit the roof in Bengaluru and other major cities in the past two decades, small time brokers and agents had a free run as they became indispensable in the sector. But now with property brokerage coming under the ambit of the Karnataka Real Estate (Regulation and Development) Act (RERA), tough times are ahead for them. "It has been tough for brokers to sustain themselves for the past two years because of the sluggish real estate market, especially in Bengaluru. Now, with RERA coming in, it will become more difficult because of the penal factor and credibility issues.Only serious brokers who register will survive in the market,'' said a senior executive working with a leading realty brokerage firm. According to estimates, there are around 10 lakh brokers in the state, who are neither registered nor regulated. "Many of them are unqualified and inexperienced.More often than not, agents tend to drive their own agenda to earn higher commissions.Even politicians have doubled up as real estate brokers in many cities. There have been numerous instances of real estate agents taking customers for a ride by selling the same property to one or more persons. Lack of adequate regulations and certifying bodies for real estate agents is one of the reasons for unprofessionalism in the sector," said Madhusudhan S, a property consultant.
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