MahaRERA Mandates Clear Commission Terms for Real Estate Agents in Sale Agreements
The Maharashtra Real Estate Regulatory Authority (MahaRERA) recently announced a new mandate to enhance transparency in property transactions involving registered real estate agents. Under this directive, agreements for sale must now include a clause specifying the commission, brokerage, and associated charges that promoters or allottees agree to pay agents. This development aims to recognize the role of real estate agents formally and to promote accountability. By having such terms documented within the model form of agreement, the directive ensures that agents have legal validation of their role, which may reduce payment disputes and hold developers accountable for their commitments.
For years, real estate agents have been advocating for measures that protect their rights and ensure timely payment for their services. This order signifies an acknowledgment that agents deserve compensation for their role in facilitating transactions. This directive builds on a 2019 Gazette notification issued by Maharashtra’s Housing Department, which outlined the need for organized practices within the real estate sector.
The National Association of Realtors (NAR)-India, a self-regulatory organization of real estate agents, worked closely with MahaRERA over the past year and a half, pushing for a fair recognition of agents’ contributions. Pramod Vyas, Vice-Chairman of the RERA committee at NAR-India, explained that the circular is a result of this collaboration and marks a shift towards greater organization and protection for agents who work between allottees and developers.
The new rule will document the agent's involvement, ensuring proof of their service in the agreement for sale and allotment letters. This could be a significant step towards transforming real estate practices that have often seen agents working in an unorganized and overlooked manner. Mr. Vyas further highlighted that the order holds agents accountable from both the allottee's and the developer's sides, which, in turn, could foster more standardized industry practices.
This mandate by MahaRERA follows a series of other reforms aimed at increasing transparency and standardizing practices in Maharashtra's real estate sector. Earlier, MahaRERA had mandated that developers must disclose details regarding parking in annexures attached to allotment letters and agreements, a step taken after receiving numerous complaints regarding unclear parking allocations.
Additionally, a recent draft order required developers to provide comprehensive information on the amenities and common area facilities available within the project, including specifics on size, layout, and location. These changes reflect MahaRERA’s commitment to addressing ambiguities in property agreements and improving the experience for property buyers.
The new mandate is expected to strengthen the role of real estate agents within the industry, potentially encouraging a more professional and organized market. The directive is likely to standardize commission payments, minimizing disputes between agents and developers. It also brings a new level of transparency to transactions, benefiting all parties involved—agents, developers, and property buyers.
With clearly documented payment obligations, agents can work more confidently, knowing their commissions are legally supported. Developers, too, will face increased accountability, which may ultimately foster a more trustworthy environment within Maharashtra’s real estate market.
