RERA vs. Real Estate Referrals: What You Should Know

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“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.” – Franklin D. Roosevelt

 

The quote still holds true today as Real Estate can be considered to be one of the most popular and rock solid business in the world. The Real Estate (Regulation & Development) Act (RERA) 2016 has been getting its fair share of attention since it was implemented from May 1 2017. On one hand it has created waves of excitement and delight among the Indian promoters and developers but also fear and frustration on the other. Real Estate Referral was taken  for granted at one point of time and has become an illegitimate activity after RERA has been implemented. The Real Estate Referral business specifically is bound to be most affected by it.

 

So what exactly is a Real Estate Referral?

Real Estate Referrals occur when a past customer or buyer of any real estate entity decides to refer a prospective buyer to the promoter or developer to carry out a deal. The past customer forwards prospective leads and gets his small percentage of cut from the deal. Such real estate referrals could be carried out by anybody and everybody before the implementation of RERA.

Up to nearly 30% of all real estate deals in India are done through referrals and often Real Estate Referrals have high margins. This whole business of referring buyers and sellers in India still now is very unorganized and unpredictable with very less accountability and no rules to govern anyone.

This has led to many complaints and grievances from both the buyers’ side as well as the promoters’ side due to delayed projects or other misrepresentations. The Indian government had decided to regulate this sector and an earlier concept of the Real Estate (Regulation & Development) Act was drafted in 2008 but it was finally implemented after a long process on May 1, 2017.

 

How does RERA affect us all?

RERA 2016 has already been implemented in many states such as Maharashtra, Tamil Nadu, Karnataka etc with others states to follow having already set their registration deadlines accordingly. The new Act plainly states that you have to register yourself as a legitimate real estate agent (REA) to carry any kind of real estate business. The ones who are not registered and caught would have to pay fines as much as up to 5% of the real estate asset. This cuts out a lot of middlemen giving a relief to the middle class buyers or sellers. Though on one hand raises valid questions as compliance fee for smaller agents eats out into the profits motivating them not to register their deals or go for shady deals as any approval for a project would take months.

 

Is there an easy solution to all these?

Yes. Here is where Loyalie comes into the picture with its USP of being RERA 2016 Compliant. The power of the Loyalie Referrals Platform with its advanced tracking will help you do and grow your business in an exponential manner. Any registered developer firm or promoter can get connected to us and we will not only manage the referrals digitally and offline but also help you run your reward programs.

Loyalie handles all the work thereafter freeing you of any legalities or liabilities. It’s a revolutionary and hassle free method to run your business in this digital age.

 

 

Is it an easy process?

Absolutely. It is a quick, easy and hassle free method. To request a quick demo click here. We want to help you to help yourself and grow your business as smoothly without any liabilities after the RERA implementation.

Make your real estate goals come true and grow with the help our expertise and technology.

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