Section 9 & 10 RERA Registration & Duties: Solved Practice Questions for Real Estate Agents

Section 9 & 10 RERA Registration & Duties: Solved Practice Questions for Real Estate Agents

The Real Estate (Regulation and Development) Act, 2016 (RERA) places specific obligations on real estate agents through Sections 9 and 10. These sections form the legal backbone of agent compliance in Maharashtra under MahaRERA. With the enforcement of MahaRERA Circular 50/2024 in November 2025 tightening penalties for non-compliance, understanding these sections through practice questions has become essential for agents seeking or maintaining certification.

This guide provides solved practice questions covering Sections 9 and 10, aligned with the Certificate of Competency framework mandatory since January 2024. Each answer explains the practical application and regulatory interpretation relevant to your daily operations.

Understanding Sections 9 & 10: The Foundation

Section 9: Requirement of Registration of Real Estate Agents

Section 9 mandates that no person shall act as a real estate agent unless registered with the State Real Estate Regulatory Authority. In Maharashtra, this registration is managed by MahaRERA. The section creates a legal barrier: unregistered agents cannot legally practice, and agents operating without registration face penalties, suspension, or cancellation of registration.

The registration requirement covers any individual or entity that facilitates the purchase, sale, or lease of immovable property for consideration, directly or indirectly.

Section 10: Duties of Real Estate Agents

Section 10 outlines the affirmative duties agents must perform. These duties are not optional—they are mandatory obligations that form the standard of care expected in the profession. Violation of Section 10 duties constitutes a breach of regulatory compliance and can result in disciplinary action.

Practice Question Set 1: Registration Requirements

Question 1: When Must an Agent Complete Registration?

Scenario: Rajesh has been informally helping buyers and sellers connect for the past two years without formal registration. His friends now ask him to handle property transactions on a small fee. He plans to apply for registration with MahaRERA next month. Can he continue operating until his registration is approved?

Answer: No. Under Section 9, registration must be completed before acting as an agent. The law does not provide a transition period or "pending registration" status. Rajesh must discontinue all agent activities immediately, even informal ones involving consideration. Operating without registration exposes him to:

• Penalties up to ₹50,000 for the first offense under Section 9
• Potential criminal liability under Section 79
• Rejection of his registration application on grounds of prior non-compliance
• Civil action by clients claiming transactions conducted by an unregistered agent

Practical Guidance: Complete all registration requirements and receive written confirmation of registration before engaging in any agent activity. Keep your registration certificate accessible during all client interactions.

Question 2: Does Registration Expire?

Scenario: Priya registered as an agent with MahaRERA three years ago. She received her registration certificate but hasn't updated it. Can she continue operating under the original registration?

Answer: Registration validity depends on the terms specified in your registration certificate. Most MahaRERA registrations are valid for five years from the date of issue. However, you must:

• Renew your registration before expiry
• Update any changes in information within 15 days of occurrence
• Maintain proof of continuous compliance with Section 10 duties

Priya should verify her certificate's expiry date and initiate renewal at least 60 days before expiration to avoid lapse in registration.

Practical Guidance: Mark your registration renewal date on a calendar. Submit renewal applications well in advance. Non-renewal results in automatic deregistration and inability to practice.

Practice Question Set 2: Core Duties Under Section 10

Question 3: Disclosure of Interest—What Must Be Disclosed?

Scenario: Vikram is an agent representing a buyer for a property worth ₹75 lakhs. Unknown to the buyer, Vikram's brother is the actual seller. Vikram receives commission from both sides but discloses only that he is "involved in this transaction." Has Vikram complied with Section 10(1) duties regarding disclosure?

Answer: No. Section 10(1) requires agents to disclose all "material facts" to parties, including any interest the agent holds in the property or relationship to parties. The disclosure must be:

• Complete and unambiguous
• Made before the transaction is negotiated
• Documented in writing
• Specific, not vague or partial

Vikram's disclosure is inadequate. The buyer is entitled to know:

• The agent's family relationship to the seller
• That Vikram is earning commission from both sides
• Any potential conflict of interest
• The buyer's right to independent representation

Regulatory Consequence: This constitutes a serious breach of Section 10(1). MahaRERA can suspend or cancel Vikram's registration and impose penalties up to ₹1,00,000 for deliberate misrepresentation.

Practical Guidance: Maintain a Conflict of Interest Register. Document all personal or financial interests in every transaction. Use standardized disclosure forms that capture all relevant information. Never assume that vague disclosure is sufficient.

Question 4: Accuracy of Property Information

Scenario: Deepa is marketing a residential property listed as "2-BHK apartment" in the MahaRERA portal. During a site visit, the buyer discovers it is actually a 1-BHK with an additional room that is not properly ventilated. The seller claims Deepa provided incorrect information. Is Deepa liable under Section 10?

Answer: Yes. Section 10(2) requires agents to maintain accuracy in all information about the property, including dimensions, configuration, legal status, and amenities. The agent is responsible for:

• Verifying information before publishing
• Ensuring all promotional materials are factually correct
• Disclosing any defects or structural issues known to the agent
• Not making misleading statements about property specifications

Deepa's misrepresentation of the property as 2-BHK violates Section 10(2). She should have:

• Physically inspected the property before listing
• Verified the actual configuration with property documents
• Disclosed the lack of proper ventilation in the additional room
• Corrected the listing immediately upon discovering the error

Regulatory Consequence: MahaRERA will likely impose a penalty of ₹50,000 to ₹1,00,000 and mandate correction of all listings within 7 days.

Practical Guidance: Always conduct a thorough on-site inspection before listing. Cross-reference all information with property documents, title deeds, and municipal records. Update listings immediately if you discover discrepancies. Photograph all relevant areas and maintain inspection reports.

Question 5: Handling Client Money—Trust Account Requirements

Scenario: Mahesh, a registered agent, receives ₹5,00,000 as earnest money from his client to be held pending the purchase agreement. He deposits the money in his personal savings account and issues a personal receipt to the client. The transaction later falls through. What violations has Mahesh committed?

Answer: Mahesh has committed serious violations of Section 10 duties regarding client funds. The correct procedure requires:

• Maintaining a separate trust/escrow account (not personal)
• Deposits made only in the client's name or jointly with all parties
• Maintaining detailed records of all transactions
• Issuing official receipts with trust account details
• Holding funds in trust, not as personal funds
• Paying interest if applicable (as per agreement)

Mahesh's violations:

• Commingling client funds with personal funds
• Failing to maintain transparency in fund handling
• Exposing client money to personal financial liability
• Violating trust obligations under Section 10

If Mahesh becomes bankrupt or the account is attached by creditors, the client's earnest money becomes unsecured.

Regulatory Consequence: Cancellation of registration, penalties up to ₹2,00,000, and potential criminal prosecution for breach of trust.

Practical Guidance: Open a dedicated trust account with a scheduled bank. Ensure the account is explicitly labeled as a trust account. Maintain separate ledgers for each transaction. Reconcile accounts monthly. Never withdraw funds from the trust account for personal use. Maintain all client documentation for at least five years.

Practice Question Set 3: Transparency & Documentation

Question 6: Commission Disclosure and Receipt

Scenario: Neha negotiates a property sale at ₹50 lakhs. She verbally agrees with the buyer that her commission is ₹50,000 but writes a receipt for ₹25,000, planning to collect the remaining amount later from the seller. The buyer does not receive a written confirmation of the full commission. Does this comply with Section 10?

Answer: No. This violates multiple provisions of Section 10:

• Section 10(1): Material facts (full commission amount) must be disclosed in writing before the transaction
• Section 10(2): All information must be accurate and complete
• Transparency requirement: Clients must have clear knowledge of all costs

The correct procedure requires:

• Written disclosure of the full commission amount before negotiation begins
• Specification of who pays the commission (buyer, seller, or both)
• Clear breakdown if commission is split between parties
• Single official receipt reflecting the actual amount collected
• Signed acknowledgment from the client

Regulatory Consequence: Registration suspension for 6-12 months and penalties up to ₹1,00,000 for misrepresenting commission.

Practical Guidance: Use standardized commission agreements. Provide these to clients in writing at the first consultation. Calculate total commission transparently. Issue one comprehensive receipt after full collection. Maintain copies of all commission agreements for MahaRERA audit.

Question 7: Documentation and Record Maintenance

Scenario: During a MahaRERA compliance audit, Amit cannot produce documented records of transactions conducted over the past 18 months. He maintains loose notes on various properties but has no organized client files, no transaction ledgers, and no copies of agreements he facilitated. What violations occur?

Answer: Amit has violated Section 10(2) requirements for record-keeping and documentation. Section 10 mandates agents maintain:

• Detailed transaction records for each property
• Client identification information
• Copies of all agreements facilitated
• Proof of compliance with disclosure obligations
• Commission agreements and payment receipts
• All communications with parties
• Records of earnest money, deposits, or client funds

Records must be maintained for a minimum of five years and made available to MahaRERA within 15 days of request.

Amit's absence of documentation suggests:

• Lack of professional standards
• Inability to prove compliance
• Risk of disputes with clients
• Potential fraudulent activity

Regulatory Consequence: Immediate suspension of registration pending investigation. Cancellation likely if violations are confirmed. Penalties up to ₹2,00,000.

Practical Guidance: Implement a file management system immediately. Create a master transaction register with date, parties, property address, amount, and commission. Maintain separate folders for each transaction. Digitize records with backup systems. Conduct quarterly audits of your documentation. Train any staff on record-keeping procedures.

Practice Question Set 4: Compliance with MahaRERA Regulations

Question 8: Certificate of Competency Compliance

Scenario: Suresh completed his RERA registration in December 2023 but has not obtained the Certificate of Competency mandated as of January 1, 2024. MahaRERA Circular 50/2024 now requires proof of this certificate for continued operation. Can Suresh continue as an agent without this certificate?

Answer: No. Effective January 1, 2024, all real estate agents must possess a Certificate of Competency. This is not optional; it is a regulatory requirement. Suresh must:

• Enroll in an approved Certificate of Competency course immediately
• Complete all modules covering RERA sections, agent duties, compliance procedures
• Pass the final examination with required marks
• Submit the certificate to MahaRERA within 30 days of issue
• Renew the certificate every three years

Continuing without the certificate after the deadline violates Section 9 and subjects Suresh to:

• Suspension of registration effective immediately upon notice
• Penalties up to ₹1,00,000
• Cancellation of registration if non-compliance persists
• Prohibition from re-registration for a specified period

Practical Guidance: If you have not obtained your Certificate of Competency, enroll in an approved course immediately. RERAExam.com provides comprehensive Certificate of Competency training aligned with MahaRERA requirements. Maintain your certificate copy and ensure copies are submitted to MahaRERA on time. Treat this as a non-negotiable compliance requirement.

Question 9: Misleading Advertisements

Scenario: Ritu posts an advertisement on a property portal showing "Prime Location, 5-Star Amenities, Gated Community" for a property that is actually located on a busy main road, has basic amenities equivalent to standard residential societies, and has no gating. The advertisement attracts buyers based on false representations. Has Ritu violated her duties under Section 10?

Answer: Yes. Section 10(2) and general transparency principles prohibit misleading advertisements. Advertisements must be:

• Factually accurate
• Not exaggerated or deceptive
• Representative of actual property conditions
• Free from misleading terminology

Ritu's violations:

• "Prime Location" misrepresents busy road location
• "5-Star Amenities" exaggerates basic amenities
• "Gated Community" falsely suggests security features
• Advertisement attracts buyers under false pretenses

Regulatory Consequence: Immediate removal