Telangana Agent Gets ₹3.69 Lakh Fine for No License

Acting as real estate agent without registration has serious consequences in Telangana, as proven by a recent order from the Telangana Real Estate Regulatory Authority (RERA). In a strict move to uphold real estate transparency, Telangana RERA has imposed a penalty of ₹3.69 lakh on an individual for illegally operating as a real estate agent.

This case marks a significant step toward enforcing the provisions of the Real Estate (Regulation and Development) Act, 2016, more commonly known as RERA. The act requires that all real estate agents be registered with the appropriate RERA authority before conducting any transactions. Telangana RERA’s recent action has sent a clear message to unauthorized agents across the state.

Details of the Case

The penalized individual had been acting as real estate agent without registration, directly violating Section 9 of the RERA Act. Section 9 mandates that no person shall function as a real estate agent without obtaining registration from the regulatory authority.

The complaint was registered with Telangana RERA, which investigated the matter and concluded that the person had carried out multiple real estate transactions despite lacking official credentials. The authority held that these unlicensed activities not only breached the law but also compromised the interests of buyers and investors.

After verifying the evidence, Telangana RERA imposed a monetary penalty of ₹3,69,000, calculated under the provisions of Section 62 of the RERA Act, which allows for financial punishment up to ₹10,000 per day of default.

Legal Perspective and RERA’s Mandate

RERA was implemented to bring greater accountability and transparency in India’s real estate sector. One of its core principles is ensuring that only licensed developers and agents engage with consumers. This helps eliminate fraudulent practices and protect homebuyers from being misled.

When someone is acting as real estate agent without registration, they are violating not just legal obligations but also the trust of property buyers. Registered agents are required to follow ethical practices, submit periodic reports, and ensure transparent dealings. Unregistered agents do not fall under any scrutiny and often engage in misleading or unlawful transactions.

Telangana RERA’s action reiterates the importance of following due process. It has also been emphasized that anyone found flouting the law, especially by acting as real estate agent without registration, will face significant penalties and potential legal consequences.

Why Registration Matters

Real estate registration under RERA brings multiple benefits:

• Credibility: Buyers can verify the agent’s credentials.
• Accountability: Registered agents are subject to penalties and disciplinary action.
• Transparency: Clients are provided with documented agreements and receipts.
• Legal Protection: Disputes can be resolved through RERA’s grievance redressal mechanism.

Operating without registration removes all of these safeguards. Consumers engaging with such agents may not even be aware of their unlicensed status, putting their investment at risk.

Market Impact and Consumer Awareness

This case sheds light on the widespread issue of unregistered agents, particularly in Tier-II cities and emerging real estate zones of Telangana. Many such individuals market properties via social media and word-of-mouth, claiming to offer “better deals.” However, without proper registration, their actions remain outside the legal framework.

Buyers are advised to conduct due diligence before engaging with any property agent. Telangana RERA provides a public portal where consumers can check the registration status of agents and developers. Before paying even a token advance, one must ensure the agent has a valid RERA number.

This landmark case is expected to improve market practices and increase awareness among real estate stakeholders.

What Happens If You Don’t Register?

The penalty imposed in this case is not an isolated one. RERA authorities across India have taken similar steps. Here’s what happens if someone is found acting as real estate agent without registration:

• Financial Penalty: Up to ₹10,000 per day of default or 5% of the cost of property involved.
• Legal Proceedings: Repeated offenses may attract stricter enforcement or even criminal action.
• Name Blacklisting: Public records of RERA display penalties and blacklisted agents, impacting future business.

Therefore, registration is not merely a formality; it is an essential step for anyone looking to earn a living through property transactions.

Expert Opinions

Industry experts believe this penalty will encourage stricter compliance in the sector.

According to a Hyderabad-based real estate lawyer:
“This fine sends a strong message. Registration is no longer optional. Ignorance or intent, both carry weight under RERA. Agents must be prepared or face legal heat.”

A certified real estate agent from Telangana added:
“I’m glad this happened. Honest professionals suffer due to unlicensed agents who undercut prices and mislead buyers. Enforcement will restore professionalism in our sector.”

Conclusion

The Telangana RERA’s decision to impose a ₹3.69 lakh penalty for acting as real estate agent without registration is a landmark action that reinforces legal compliance in the real estate sector. This case sets a clear precedent and serves as a warning to all unregistered operators.

Buyers must stay alert and verify agent registrations before any property deal. Simultaneously, agents must ensure that they are officially registered with the RERA authority to avoid legal repercussions.

With regulatory bodies stepping up enforcement, the future of Indian real estate looks more secure, credible, and consumer-friendly. Agents must take this as a reminder that in today’s regulatory environment, there is no room for shortcuts or negligence.

Also Read – Are Real Estate Brokerages Dying? 7 Alarming Industry Shifts