Code of Ethics
For the NAR-INDIA’s Code of Ethics, click here
There are no entrance requirements for a real estate practitioner in India. No prior education/certifications are mandatory. A practitioner can market properties anywhere in the country, There are no regional/local restrictions — only the local/regional legal framework may vary. Stamp and registration rates may differ. A non-resident can market properties through joint ventures and with prior Reserve Bank of India permission.
Reserve Bank of India regulates foreign ownership. Foreign direct investment has been allowed in real estate to the extent of 100%.
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Land Registration System
The government is responsible for the registration of property ownership. The system is computerized only in states like Maharashtra, Tamil Nadu and Andhra Pradesh. The systems there are web based and accessible to the public. Other states are actively looking at computerizing their land records as well. The current systems are run by governmental machinery.
Other industry professionals
This information is currently being compiled by the ICREA-member association in this country. Please check back or contact NAR-INDIA directly for further information.
The present economic scene indicates the trend towards owner occupied premises in the residential and lease rentals for commercial properties. The real estate practitioner provides a wide range of services such as :
- Showing the Property
- Advertising Property
- Legal Contracts
- Negotiating the Sale
- Neighborhood analysis
Property Marketing Systems
A marketing system exists to some extent but it is very often manual, particular for smaller agencies. Computerized systems may yet gain routine acceptance but are currently restricted to bigger players and practitioners. It is highly local and moderately regional and rarely national in its scope.
Web based marketing systems are increasingly available in the big cities. The net penetration is enabling web-based marketing systems. Also a high degree of Non Resident Indians is compelling many mid-sized as well as small outfits to become web based. All types of properties including residential, commercial, sale or rental are covered in the web based systems. These systems are highly proprietary in nature.
The owner of the database has access to and operates marketing systems.
Only http://www.indiaproperties.com runs a referral system at its website that is very national in its design.
Relationship of Buyer/Seller to Practitioner
The real estate environment in India is quite informal in its nature and practice. In fact there is to date no system for licensing of Brokers/professionals connected to real estate. . In such an environment there is more of the informal system of transactions prevalent. There are prima facie no “legal” obligations that bind the parties to the contract.
Recently, the construction industry (represented by a developer) and the agency (the ‘broker’) have now been included under the “Consumer Protection Act”. The knowledge of legal redressed of grievances pertaining to the above entities is however not too known amongst the general public.
Parties do not typically sign contracts. Deals are more verbal and based on trust than on written contracts. The informal sources such as homemakers, friends and relatives, kiosk owners, janitors etc., are particularly visible in their presence and vigorous in their pursuit of business. Thus we have this as the ‘facilitator’ category.
In such a scenario, there are emerging new entities led by multinational brokerage houses, realty arms of home loan finance institutions and other professionally qualified firms which typically have moved from the above image to more formally organized brokerage entities, providing value added services.
Having mentioned the scenario, contract signing is restricted to the latter category. Contracts may be in the form of a letter of intent or actual legal contracts depending upon the property type and the quantum of business. Typically, contracts are verbal in nature for made by the informal segment, but written in case of professional firms/ organizations
Commission in case of sale. Fee in case of rental. Paid by the party who contacts the agent. The payment occurs after the deal is done. No governmental control as the market is highly disorganized in nature. The market evolves its own norms based on the forces of Demand and Supply at a particular time and for a particular location. There is no statutory restriction.