Brokers or agents play a central role in transactions in the Indian real-estate sector. However, so far, they have never been within the ambit of any formal regulatory framework. The Real Estate (Regulation and Development) Act 2016 will change this.

One of the highlights of the recently passed Real Estate Regulatory Act 2016 is a set of provisions to govern real estate agents (or brokers) across the country. The act mandates all agents to register with their respective state regulatory authority and to comply with all provisions of the law.

While some expert speculations say that the brokerage market will see consolidation, others are afraid that there are too many loopholes for these provisions to have a lasting impact. While consolidation will be a test of time, there is no doubt that, after this act, the market will become untenable for freelance or part-time brokers.

If you are a broker and want to be prepared for the upcoming change in the market, here are some things you can do:

• Strengthen your legal teams to ensure that you are compliant. It is important to have an in-house legal team or a legal consultant as the new policy will bring in a lot of legal changes; make sure that you miss the small print.

• Be transparent with your customers. Unfortunately, homebuyers often have little trust in brokers; developers also often put the blame on brokers. Given such a situation, being completely transparent with all parties involved is the best way forward. It is also best to do your own diligence for all properties that you choose to promote. It is easy to get lured in by the promises of the developer and sell these the buyer. However, staying true to ethical practices will require you to verify all claims for yourself.

• Acquire new skills. Staying relevant in in changing times and a changing marketplace is difficult, but important. Improve your business models by incorporating new technologies. Maintaining an up-to-date website is only one example—technology is changing the world; do your best to use it to your advantage.

• Proper documentation and record-keeping. It will be very important, going forward, to comply with all proper documentation processes and to keep record of all transactions and information exchanged, whether with the home buyer or the developer.

• Promote only registered properties. While the act makes it mandatory for all units greater than 500 square meters to hire only registered brokers, it applies equally to brokers (or agents) as well. As a broker, ensure that you promote only registered properties to avoid any legal trouble.

These are, in effect, simply pre-emptive measures that all brokers can take to be compliant and prepared for the challenging times ahead. This latest act states only what a broker is not expected to do—it does not inform brokers what they are expected to do. However, increasing regulations are a sign that the market is attempting to be seen as more credible; this will attract more investors and build trust among buyers. In such an environment, it is important that brokers, or agents, also take steps to cement their trust and credibility. This can happen if you always act in the most professional and ethical way possible. As global standards start to apply to the Indian market as well, it is best to be prepared and future-proof yourself—by adopting new technologies, considering specialized education in your field, and ultimately, making sure that you always provide the best value to your clients.