Brokerage issues to come under MahaRERA ambit
The development cost or cost of construction of a project shall not include marketing and brokerage following the sale of apartments, states the latest amendment.
The development cost or cost of construction of a project shall not include marketing and brokerage following the sale of apartments, states the latest amendment. Such expenses though part of the project cost, should not be borne from the amount that is required to be deposited in the designated separate account which essentially means that a broker can now approach the authority if his brokerage is due.
Every developer has to maintain a separate account where he deposits money that has to be used for the development of the project. The money in this account has to be used only for construction and purposes related to the development of the project. That means the money cannot be diverted for other things which include marketing, explained property watchers.
The notification further reads, "In case the transaction being executed by this agreement between the promoter and the allottee is facilitated by a Registered Real Estate Agent, all amounts (including taxes) agreed as payable remuneration / fees/ charges for services/commission/brokerage to the said registered real estate agent, shall be paid by the promoter/ allottee/ both, as the case may be, in accordance with the agreed terms of payment."
While developers are apprehensive, the decision to eliminate the marketing and brokerage expenses from the cost of development is a good move from consumer's point of view but it also means that it can impact the prices for the end-consumers.
Real estate industry feels that in order to make a sale, advertising, marketing, and brokerage costs are a part and parcel of the project cost and should have ideally be part of project cost.
Real estate agents feel that it is a good move.
"With RERA covering brokerage we are sure that we will finally get our dues. We had also recommended the standardisation of brokerage fees which is yet to be approved. However, this is a good move." said an agent.