Only 1% Property Broker’s Combined Commission: Haryana’s RERA

Only 1% Property Broker’s Combined Commission: Haryana’s RERA
27/10/2020 , by , in News/Views

Taking cognisance that property dealers charge arbitrary commission both from the sellers as well as the buyers of a property, Haryana’s Real Estate Regulatory Authority, Gurgaon has put up a ban on charging more than one per cent commission (combined) from buyer and seller.

RERA’s bench headed by Dr KK Khandelwal said, “It is for the first time in the interest of the buyers of real estate, the nefarious activities of the brokers are under the investigation and likely to lead to strict action against them.”

For real estate registered projects RERA has decided to issue restrain orders to all promoters and brokers not to charge commission more than what is prescribed in the Haryana Regulation of Property Dealers and Consultants Rules, 2009 made under the Haryana Regulation of Property Dealers and Consultants Act, 2008. Rule 10 of the said rules provides for one per centum commission on agreed consideration value to be paid by the seller and purchaser of the property i.e. ½ per cent by each of them on finalization of the deal as per their agreement entered in the register of the dealer under the valid receipt.

Several cases of arbitrary commission as high as 5 per cent to 10 per cent of the value of the property being charged by the agent came to the notice of RERA. Licenses to the brokers/property dealers are granted by the Deputy Commissioner concerned under the Haryana Regulation of Property Dealers and Consultants Act, 2008.

The registration of the property dealer to negotiate/mediate real estate deal of a registered project is done by the RERA under Section 9 of the Real Estate (Regulation and Development) Act, 2016 and the registration is then granted subject to the condition that the real estate agent shall not contravene the provisions of any other law for the time being as applicable to him.

It is mandatory for the brokers to keep a copy of relevant approvals/plans, specifications, brochures etc of the projects where deals are being facilitated by them. “The brokers/ property dealers who do not have the necessary documents shall also be penalized including cancellation of their registration with the Authority alongwith recommendation to the Deputy Commissioner for withdrawal of the license. In the code of ethics it is proposed to make it mandatory for displaying the details of the real estate project and units at a place where sale is being facilitated by them”, said SC Kush.

Khandelwal added that “the promoters shall also be asked to provide details of brokers in the prospectus and advertisement so that unauthorized brokers, acting on behalf of main brokers, do not indulge in malpractice and burden the buyers both with commission by the brokers and margins by the sub-brokers”.

About Realty Plus

Loading...