Maharashtra RERA Streamlines Payments to Real Estate Agents
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued a landmark order to streamline payments to real estate agents. The order mandates the inclusion of a clause in the model form of agreement for sale, which states that the transaction is facilitated by a registered real estate agent and documents the commission, brokerage, charges, etc. that the promoter or allottee has agreed to pay the agent. This move is expected to recognize the role of agents, promote transparency, and ensure timely payment while minimizing disputes.
Fair Recognition and Organized Work
Real estate agents have welcomed the order, stating that it recognizes their entitlement to brokerage in transactions enabled by the agent. The circular issued by MahaRERA is a result of the National Association of Realtors NAR-India’s advocacy for fair recognition of real estate agents’ contributions over the past one and a half years. The circular was issued based on a Gazette issued by the state Housing Department in 2019.
According to Pramod Vyas, vice-chairman of RERA, NAR-India, the inclusion of real estate agents’ role in the agreement for sale and allotment letter will provide proof of the transaction and bind the agent to both the allottees and the developers. It will ensure that the agents are protected while carrying out transactions and bring organization to their work.
Mandatory Details for Developers
MahaRERA has been taking initiatives to enhance transparency and accountability in the real estate sector. Previously, it made it compulsory for developers to include all details related to parking in annexures to the allotment letter and agreement for sale, following complaints regarding parking spaces. In addition, the regulatory authority issued a draft order that requires promoters to provide comprehensive details, including the size and area of all amenities and facilities, both within the building and in the overall layout.
Advancing the Real Estate Sector
The Maharashtra RERA’s order to streamline payments to real estate agents marks a significant step in promoting transparency and accountability in the sector. By recognizing the role of real estate agents and ensuring that their commission and brokerage are documented, this move will lead to better working conditions for agents and reduce disputes over payments. The inclusion of mandatory details in agreements for sale and allotment letters will also enhance transparency for buyers, allowing them to make informed decisions about their investment.
The Maharashtra RERA continues to undertake initiatives that drive positive change in the real estate landscape. With these measures, the sector is sure to witness increased trust and confidence from both buyers and sellers, bolstering the overall growth of the industry.
