Mumbai: Despite stringent measures implemented by the Maharashtra Real Estate Regulatory Authority (MahaRERA), illegal real estate agents continue to flourish across the state, posing significant challenges to homebuyers.
MahaRERA, established to regulate and promote transparency in the real estate sector, mandates that all real estate agents be registered under the authority. However, a significant number of agents operate without proper registration, exploiting loopholes and undermining the regulatory framework.
According to MahaRERA, there are 13,370 agents registered with the Authority who are trained and aware of all the details of the projects. However, thousands of unregistered or illegal agents often lure unsuspecting homebuyers with promises of lucrative deals and quick transactions, only to trap them in fraudulent schemes or substandard properties. The lack of accountability for these unregistered agents leaves homebuyers vulnerable to financial losses and legal complications.
When contacted, an official from MahaRERA said, “The developers need to come forward and report about such unregistered agents. If they file a complaint, MahaRERA will definitely take a suitable action against the agents.”
President of National Real Estate Development Council (NAREDCO), Maharashtra, Prashant Sharma said, “The presence of unregistered agents in the real estate market is a matter of serious concern, and it undermines the integrity of the sector. However, the persistence of unregistered agents highlights the need for more stringent enforcement and greater awareness among consumers. MahaRERA can identify such agents and take appropriate legal action against them. We are also advocating for a robust mechanism that will allow consumers to easily verify the credentials of agents before engaging with them.”
“Furthermore, NAREDCO is committed to educating the public about the risks of dealing with unregistered agents and encouraging them to only work with those who are registered and well-informed about the projects they are promoting. We believe that with collective effort and enhanced vigilance, we can curb this practice and ensure a more transparent and reliable real estate market in Maharashtra," he added.
To combat this growing menace, stricter enforcement, increased public awareness, and stronger collaboration between MahaRERA and local authorities are essential. Homebuyers are urged to verify the credentials of agents through the MahaRERA portal to safeguard their interests.
Director of Mumbai Realtors Pvt Ltd, Dhiraj Mandal said, “MahaRERA has made it mandatory for only those agents who deal in primary sales (under-construction projects) that are registered with the Authority to register and obtain the Certificate of Competency (CoC) examination so that they are well versed with the nuances of dealing in under-construction projects. There is a growing demand that even agents who deal in secondary sales (resale and rental transactions) be made to get registered with MahaRERA and compulsory take the CoC, so that the entire service industry of the broking business becomes professional.”
“We also request the Authority to conduct the exam monthly which is currently being conducted every 4/6 months. The MahaRERA should also make it compulsory for the sales staff of the developer as also large mandate agencies to take the CoC as they make up for bulk of the primary market sales,” Mandal added.
Co-Founder of PropFina, Nitin Singhal said, “Unregistered agents continue to operate in the primary market due to several factors. Many agents, especially in smaller towns, lack awareness of the regulations or the penalties for non-compliance. Enforcement by MahaRERA is challenging due to the large number of agents and limited resources. Some developers may still engage unregistered agents to expedite sales, prioritizing speed over compliance.”
“Additionally, the informal nature of the real estate market allows unregistered agents to thrive on word-of-mouth referrals. The cost and complexity of the registration process can deter smaller agents from registering, and a lack of consumer awareness about MahaRERA's importance enables unregistered agents to operate with minimal scrutiny. Stronger enforcement, better education, and simplifying registration could help address these issues,” Singhal added.
