What is the Difference between Real Estate Agent & Builder?

6 Sep, 2021

Real Estate business is a wide category that involves different professionals. It is essential to understand what each profession entails and the kind of service it offers. One of the primary two pillars of any real estate project is the builder or developer. The second is the real estate agent or broker that helps in selling and buying of property. This article aims to depict a detailed difference between these two professions.

Obviously, the first major distinction between a realtor and builder is their role in the development process of a construction project. In most cases, builders have greater control over their project once it is under construction as they know how to maintain quality standards at every stage in the process. An agent does not usually have this advantage.

An agent can help you find properties within your budget and get loans for the purchase. Here we bring you the difference between the work done by real estate agents and builders, as well as other details on how you can register as a real estate agent in India.

What is a Real Estate Agent?

A real estate agent is a professional who acts as an intermediary between the seller and buyer. The agent helps in finding out buyers for the property and also helps in negotiating good prices on behalf of the seller. Financial arrangements, like loan application and documentation, are also handled by the real estate agents. Agents help buyers find properties within their budget, as well as get them loans from banks.

Real estate agents are also required to give legal advice, including drafting of contracts and agreements or representing buyers in the court if any dispute arises. Agents can be employed by a realty firm or they may independently carry out real estate business. These individuals may also happen to be property dealers, and they work independently.

What is a Builder?

A builder between closely with the municipal corporation or other authorities to get a piece of land approved for building a residential or commercial real estate venture on it. A construction permit is required for this purpose and the builder will be responsible for ensuring that all the rules related to building regulations are followed while constructing his property on the given plot of land.

Builders are also required to get structural design and safety compliance inspections done, as well as ensure that these are carried out to the satisfaction of concerned authorities. Builders can be classified into three categories - construction companies, real estate agents, or property dealers. A few of them may operate in all three fields, however, most of them usually opt for one profession only. Registering with the developer from whom you purchase a new home reduces your costs of real estate. This is because you are not required to pay any commission or fees to the broker. The developer also takes care of all legal formalities for you and this helps in saving a lot of time, too.

What is the Difference between Real Estate Agent & Builder?

Though these terms are quite intermixed, a distinction is quite clearly made between the two, especially when it comes to their professional affiliations. Real estate agents are affiliated with real estate regulatory authorities and builders are registered with the Chamber of Construction Industry or any other similar organization.

Real estate agent can give you legal advice but they cannot get involved in the construction process. While a real estate agent acts as an intermediary between the seller and buyer, a builder is concerned with all activities related to land and construction. An agent has insight into the market and is knowledgeable about the available properties. In contrast, the builder knows how to construct a building with efficiency for best value.

A real estate agent can guide you in buying a property and help you choose the right location, but your decision will ultimately depend on what type of house or building you want to buy. A builder can construct any style of house that you want according to your needs and requirements. These days, many agents are taking the services of builders to construct the property that they have sold. This is especially beneficial for people who don't have time to spare on finding a builder or designing the house themselves.

The fee structure of an agent is largely based on commission percentage, while that of a builder depends upon the size and type of project undertaken. The builder is also responsible for the timely completion of construction projects by his team and is accountable to all concerned authorities. In most cases, builders have greater control over their project once it is under construction as they know how to maintain quality standards at every stage in the process. An agent does not usually have this advantage.

How to register as a real estate agent?

Becoming a registered real estate agent is not a difficult process, but it does require some research and understanding of the system. Once you have procured the required license, you will be issued an identification number that can be used to market your services as well as get a PAN card. You will have to obtain a registration certificate from RERA to get yourself registered as an agent. You will also need to fulfill other conditions like obtaining a specified license or registration from different local bodies and paying registration fees before you can start earning commission on the sale of properties.

The documents you will need include:

1. Type of your enterprise, as well as a permanent address
2. Name, Address, Photograph, and Contact Details of the Applicant, or that of his Partners.
3. Authenticated Copy of Your PAN Card
4. Authenticated Copy of the Specified Address

It is interesting to note that RERA has specified that the real estate agent would be responsible for the projects undertaken by him and is required to ensure that the said project should be completed within a stipulated time frame. They are also responsible for making sure there are no flaws in the construction and the building should be safe and secure for its inhabitants.

Wrapping it up

You will agree with us that, while an agent has the responsibility to connect buyers and sellers of properties, a builder is required to construct the property according to the owner's choice. Builders are often responsible for design, construction, and registering the building with the appropriate government offices. Multiple people are required to complete this process; an agent cannot do it by his own. That is why this combination of agents + builder is often the best way to get quality property, at affordable prices.