The Haryana Real Estate Regulatory Authority (HRERA) has approved a maximum of one percent brokerage on sale and purchase of property in the state.
On Tuesday, taking cognizance of the complaints that property dealers are charging arbitrary commission from both sellers and buyers, bench headed by HRERA Chairman Sh. K.K. Khandelwal and member S.C. Kush arrived at the decision.
For registered real estate projects, it has been decided to issue restraint orders to all promoters and brokers to refrain from charging commission more than what is prescribed in the Haryana Regulation of Property Dealers and Consultants Rules of 2009 under the Haryana Regulation of Property Dealers and Consultants Act, 2008.
Rule 10 provides one per cent commission on agreed consideration value to be paid by the seller and purchaser of the property i.e. half percent by each on the finalization of the deal as per their agreement entered in the register of the dealer under valid receipt.
Sh. Khandelwal said that property dealer and brokers in connivance with the promoters are charging more than prescribed commission both from sellers and buyers.
The HRERA Chairman said that certain real estate agent and brokers were also involved in issuance of misleading advertisements for upcoming projects.
He said that it has been noticed that some brokers and property dealers are indulging in sale of property in unauthorized colonies as well. A vigil is kept on such brokers so that their registrations are cancelled and criminal as well as civil action, as per law, must be initiated against them. It is mandatory for the brokers to keep the copies of relevant approvals from authorities and sanction plans, specifications, brochures etc. of projects, where deals are facilitated by them. HRERA was in the process of prescribing a code of conduct for property dealers to make sure that they abide by such norms so that there are no unfair trade practices, he added.
Khandelwal also said “We have noticed that some property dealers/agents do not have necessary documents. They shall also be penalized, including cancellation of their registration with the Authority along with recommendation to the Deputy Commissioners concerned for withdrawal of their licenses”.
The code of ethics would prescribe not only additional books of accounts to be maintained by the property dealers of commission charged as per the law and also records of transactions which may be perused by the authority in case of any dispute arise between the buyers and the brokers.
Originally published October 27, 2020
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