On January 10, the Maharashtra Real Estate Regulatory Authority (MahaRERA) issued a directive stating that all property agents must undergo an exam and obtain a certificate from the authority by September 1, 2023, in order to provide professional services. To prepare realtors for the exam, a training program was introduced with the aim of promoting consistent practices, enhancing their understanding of regulatory frameworks, and ensuring their professional qualifications to assist home buyers. While the initiative has received significant support, a notable number of agents are still unaware of the certification requirement, and some mistakenly believe their existing MahaRERA certification exempts them from the exam. Additionally, concerns have been raised about the effectiveness and purpose of the process due to the issue of a low passing grade.
According to a recent report by MahaRERA, there are 5,756 stalled projects in Maharashtra. Although under-construction projects can provide cost advantages to buyers, rebuilding trust in the real estate industry and the regulatory system is crucial to restore buyer confidence. In this context, the MahaRERA certification emerges as a timely and necessary measure. Several realtors interviewed by HT acknowledged the importance of this certification in addressing the current challenges.
Karl Nagarwalla, speaking on behalf of the entire team at Nagarwalla Estates, which operates in Mumbai with its head office in Napeansea Road, stated that they have been diligently preparing for the agents' exam through a comprehensive 20-hour online training course. Many of their agents have already taken the exam. Nagarwalla emphasized that this exam is mandatory for all individuals in the industry involved in or intending to operate in the primary sale market, specifically, transactions conducted directly with developers. Obtaining the certificate upon completion of the exam enables agents to deal with "under construction" properties, as clarified by Nagarwalla.
Nagarwalla emphasizes that their business heavily relies on goodwill and relationships. They primarily cater to buyers who seek ready properties, allowing them to see what they are purchasing rather than having to wait for an extended period of time. Nagarwalla further explains that when it comes to primary sales, their firm selectively collaborates with developers to ensure the security and satisfaction of buyers. This approach reflects their commitment to prioritizing the buyers' interests and ensuring a trustworthy and secure transaction process.
Agents like Nagarwalla Estates welcome the MahaRERA directive as they believe the training and exam will enhance their understanding of the RERA Act's technicalities.
Vinita Saxena, an experienced independent broker specializing in luxury and heritage properties, emphasizes the significance of certification in India's unorganized real estate sector, where individuals often become brokers without proper qualifications. The certification obtained through the exam holds particular importance in this context. It is worth noting that the certification remains valid for five years, after which brokers must retake the exam to maintain their certification.
However, HT spoke to at least seven independent brokers in Matunga, Mahim, Dadar, and Bandra, who claimed to have no knowledge of the exam or certification requirement. One broker in Mahim even stated, "I already have my MahaRERA certification which I received two years ago, so I don't need to go through all this. This is for new entrants in the industry."
Santosh Hinduja, a realtor specializing in commercial real estate with a head office in Opera House, explained to HT that the RERA certification mentioned by those brokers was a relatively straightforward process. He mentioned that it involved filling out a form with basic KYC details and information about their practice. It was primarily a registration process, but it was mandatory, and similar to the current certification, it required revalidation every five years.
The newly designed course curriculum by MahaRERA covers various essential aspects. It includes an introduction to the Real Estate (Regulation and Development) Act 2016 (RERA) and MahaRERA, an understanding of the MahaRERA portal, as well as the roles and responsibilities of agents, allottees, and promoters. The curriculum also focuses on the importance of due diligence when agents facilitate property sales, providing details of the sales process, forms, agreements, and real estate calculations. The comprehensive curriculum aims to equip agents with the necessary knowledge and skills to navigate the regulatory framework and conduct their professional duties effectively.
Hinduja, who has not enrolled in the training program, remains unfazed, stating that it holds no surprises for experienced professionals familiar with the industry.
There are concerns regarding the effectiveness and value of the certification due to the low passing grade set at 40% and the multiple-choice format of the exam. It is anticipated that the exam may not present a significant challenge for most agents, potentially undermining the credibility and worth of the certificate.
Many individuals, including Saxena, view this initiative as a positive step forward. Saxena believes that agents will now need to exercise extra caution when reviewing paperwork and documentation. With their enhanced knowledge on the subject, agents will be required to provide potential buyers with accurate and reliable information, which is seen as a significant improvement in the industry. Saxena appreciates the notion that agents will be more diligent and confident in their dealings with clients as a result of the certification process.
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