Code of Conduct for Real Estate Agents in India by Nikhil Pattani

If you want 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. 

Every real estate agent is mandated to make an application to the state Real Estate Regulatory Authority, for registration, along with the fee and documentation that is prescribed. For example, MahaRERA charges Rs 10,000 from an individual, proprietor, or proprietorship firm and Rs one lakh from partnership firms, societies, private limited/limited company, LLP, etc.

Once the authority scrutinises your application, it will grant a single registration for the state or union territory, as per your case. The authority may even reject your application at this stage with sufficient reason that will be provided to you in writing. However, before such a rejection, your reasons will also be heard. If you do not receive any communication from the authority, consider your application to be accepted. Note that the authorities shall deliver the registration number, along with the certificate, within 30 days from the date of registration.

According to recent notification of  MahaRERA, now all channel partners and property agents are mandatorily required to take exam and obtain certificate from authority before facilitating any service. As effect of this notification/ guideline issued on  10th January, 2023- “With effect from May 1, 2023, only those real estate agents who have a valid MahaRERA Real Estate agent traning certificate of competency can apply for MahaRERA real estate agent registration/renewal of registration.”

Code of Conduct for Real Estate Agents in India 

While there isn't an official code of conduct specifically for real estate agents in India, there are certain ethical practices and guidelines that are generally expected to be followed. These practices help ensure transparency, fairness, and professionalism in the real estate industry. Here are some key aspects that real estate agents in India are expected to adhere to:

1. Honesty and Transparency: Agents should provide accurate and truthful information about properties, including the area, amenities, and legal documentation, without misrepresentation or concealment of facts. They should also disclose any conflicts of interest they may have.

2. Fair Pricing: Agents should set realistic and fair prices for properties, considering market rates and other relevant factors. They should not engage in price manipulation or exploitation of buyers or sellers.

3. Confidentiality: Agents should maintain the confidentiality of clients' personal information, including financial details and other sensitive data.

4. Professional Competence: Agents should possess the necessary knowledge and expertise about real estate laws, regulations, and market trends. They should constantly update their skills and be aware of the latest developments in the industry.

5. Avoidance of Discrimination: Agents should not discriminate against clients based on their caste, religion, gender, or any other protected characteristic. They should treat all clients fairly and equally.

6. No Misleading Advertisements: Agents should ensure that their advertisements are not misleading, false, or deceptive. All claims made in marketing materials should be accurate and verifiable.

7. Responsive and Timely Communication: Agents should promptly respond to client inquiries and provide regular updates throughout the process of buying or selling a property.

8. Avoidance of Unfair Practices: Agents should refrain from engaging in unethical practices, such as bribery, extortion, or any illegal or fraudulent activities.

9. Compliance with Laws: Agents should comply with all applicable laws and regulations related to real estate transactions, including those pertaining to property registration, taxes, and consumer protection.

10. Professionalism and Respect: Agents should maintain a professional demeanor and treat all clients, colleagues, and stakeholders with respect, integrity, and courtesy.

While these guidelines are not legally binding, they function as a suggested code of conduct that real estate agents in India are expected to follow to maintain the credibility and trustworthiness of the industry.

Nikhil Pattani, a knowledgeable Real Estate Expert, blogger, sustainability advocate having more than 27 years of work experience in India and UAE. His expertise and dedication have helped more than 3,000 happy families find their dream home. Nikhil Pattani is also a prolific writer, painter, life coach, and motivational speaker who has changed many lives and helped many people fight against all the odds of life. Under his eponymous brand called 'Nikhil Pattani- Your Realtor', he is providing real estate and interior design consultancy. Additionally, he is offering Green Brokers' certification to the real estate professionals under his venture Scholars' Takshashila.

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