Despite stringent regulatory measures introduced by the Maharashtra Real Estate Regulatory Authority (MahaRERA) to bring transparency to the state’s real estate sector, the presence of illegal real estate agents continues to undermine these efforts, posing significant risks to homebuyers.
This growing menace not only threatens the integrity of the market but also leaves many potential homeowners vulnerable to fraud and financial loss. MahaRERA, established to regulate and promote transparency in the real estate sector, mandates that all real estate agents be registered under the authority. Currently, the authority has approximately 13,370 registered agents who are trained and knowledgeable about the various real estate projects. However, a significant number of agents continue to operate without proper registration, exploiting loopholes in the system and evading regulatory oversight.
These unregistered agents often lure unsuspecting homebuyers with the promise of quick and lucrative deals, only to trap them in fraudulent schemes or substandard properties. The lack of accountability for these illegal agents is a major concern, as it leaves homebuyers exposed to various risks, including financial losses and legal complications. According to an official from MahaRERA, developers are urged to report any unregistered agents they encounter. “If developers come forward and file complaints about unregistered agents, MahaRERA will take appropriate legal action against them,” the official stated.
Prashant Sharma, President of the National Real Estate Development Council (NAREDCO), Maharashtra, expressed serious concerns about the pervasive presence of unregistered agents. “The presence of unregistered agents in the real estate market is a significant issue that undermines the integrity of the sector. However, it also highlights the need for more stringent enforcement and greater awareness among consumers. MahaRERA has the capability to identify and take legal action against such agents, but we also advocate for a robust mechanism that enables consumers to verify the credentials of agents before engaging with them,” Sharma said.
NAREDCO is also focused on educating the public about the risks associated with dealing with unregistered agents. “We are committed to informing consumers about the importance of working only with registered agents who are well-informed about the projects they promote. Through collective efforts and increased vigilance, we can curb this illegal practice and ensure a more transparent and reliable real estate market in Maharashtra,” Sharma added.
Industry professionals are also advocating for broader regulatory measures. An official from Mumbai Realtors Pvt. Ltd. Suggested that agents involved in secondary sales (resale and rental transactions) should also be required to register with MahaRERA and obtain the Certificate of Competency (CoC), a measure currently mandatory only for agents dealing with primary sales of under-construction projects. “This would professionalise the entire broking industry,” the official noted, adding that the CoC exam should be conducted more frequently to keep up with market demands.
Furthermore, an official from PropFina highlighted the challenges MahaRERA faces in enforcing compliance, particularly in smaller towns where agents may be unaware of the regulations or the penalties for non-compliance. “The informal nature of the real estate market allows unregistered agents to thrive, often through word-of-mouth referrals. The registration process itself can be a deterrent for smaller agents due to its complexity and cost, compounded by a lack of consumer awareness about MahaRERA’s role in protecting their interests,” the official explained.
