Saga of Real estate Brokers/Agents in Goa.

Year 2012, The  BJP Government came to power in Goa, inheriting a whooping  6000 crores debt.   The state economy  was in shambles. Then came the Infamous mining ban. Almost 30percent of the Goan population, depending on mining activities are in financial distress. Then came the ban on sand extraction, sale of brick and laterite crushers etc. The real estate prices moved to southwards. The real estate activities came to standstill. The regional plan is still in the cupboards waiting for the daylight and the realty investors as well as the developers  are anxious to hear in the next move by the CM. 

Goa is an international brand. And In this tiny state of Goa, real estate market is viewed as a place of endless opportunities. This is the reason why a lot of people still want to buy the properties in Goa. Investors from Delhi, Mumbai Gujarat, Hyderabad, Bangalore, Kashmir as well as NRIs and foreign nationals are still seeking a place of land or a home in Goa. The property market in Goa is quite attractive  and hence the breed of so called real estate brokers or agents is also growing at a supersonic speed. In Goa, a motor cycle pilot is a realty broker.  A taxi driver is a broker. A waiter  in a hotel is a broker and even a salesman in the textile shop in the market is a real estate broker. 

It is assumed that,  It is very easy or any one can become a real estate agent or a broker in Goa.  One don't even need any educational qualification nor any certification or registration from authorized bodies to operate as a broker or agent.  One don't even need an office! One  needs just a mobile phone and Some hear say information of the property for sale or some one who is scouting for the property. Some smart guys will place an advert in the local news papers. Few elite ones will advertise on the Web  with Olx.com or Quikr.com.  Buyers and sellers fall prey to these ads. 

Several instances have come  to light that the imposters have sold the properties by forging the signatures of the rightful owners.  There are cases, wherein the buyers and sellers have been duped or put to financial losses by these unscrupulous agents. The fly by night operators, or the so called brokers, in collussion with the legal help execute the registry. There are instances of persons, calling themselves as agents or brokers, who even can't pronounce the Names of the Goan villages. They dont have the mandate to sell the property by the owner.  There is no MOU or a simple document signed by the owner permitting to put the property for sale. Neither they are aware  of the documentation nor the legalities. The only USP is "so and so property" is for sale. If by chance the deal is struck by the initiative of the buyer and the seller, the broker wants 2% brokerage commission on that! 

During my residency abroad, many  foreigners, mostly from UK were keen to purchase flats or villas in Goa, and some have even bought the homes in Candolim, Calangute. Perhaps, some foreigners are made to believe that they can legally purchase and own property in Goa if they first set up an Indian company and make the purchase transaction through it.  That is incorrect. Foreign nationals of non Indian origin, residing outside India are not allowed to purchase any immovable property in India.  Brokers or real estate agents who advise foreigners that they can purchase property in Goa are attempting to mislead. Several brokers are unaware of this regulations. There are strict laws in Goa that prevent the sale of properties to foreigners. Inspite  of that, scams do take place. Before parting your money, One should make sure to seek legal advice from well known lawyers to check the documents and their  legal implications before buying any property in Goa through a broker.

     

Leaving  aside a few that could be counted on your fingures, majority of the brokers are un professional and unethical.  Common examples of operations and behaviour of these unprincipled brokers in real estate are as follows. 

- Advertising, Listing the  property too high or too low in price without written consent and agreement from the Owner.

-Placing a misleading advertisement in the news papers or on the web about the price, features or benefits of a property causing loss or financial harm to investors.

-Intimidating the client to sign a document without reading, or understanding the document and their legal obligations.

-Denying the opportunity to seek legal advice prior to signing the document if the buyer or seller so desire.

-Taking an arbitrary decision regarding the sale without prior consent of the Owner of the property.

-Telling outright lies.

To control this menace, we need some sort of regulations and laws. Goa government needs to set up A regulatory body that keeps a watch over the real estate brokers  or agents. That could include: 

-All the brokers must be registered with the Revenue Department. 

-There must be a graduation as a minimum educational qualifications or specialization course in real estate sector.  

-At the same time there should be categorization based on the type of business being handled. For example real estate buying and selling broker, Real Estate leasing broker, mortgage broker, property management services, real estate valuation services, property inspection services, real estate survey services etc.

 Meanwhile, the elite, well established, professional and experienced realty dealers, brokers, agents can form an apex body of their own and maintain their own register. Imply some rules of conduct and ethical principles to their members. The fly by night brokers could be watched out, reported to the authorities and weeded. It is high time that,  there needs to be a professionalism in the real estate brokerage field in Goa. Otherwise this lucrative service sector will wind up in the grey area of mistrust and end into oblivion.