H-RERA approves maximum 1% real estate brokerage in Haryana
CHANDIGARH: It has been announced by the officials on Tuesday that the Haryana Real Estate Regulatory Authority (HRERA) has approved a maximum of one percent brokerage on buying or selling of property in the state.
Considering the complaints that property dealers are charging arbitrary commission from sellers and buyers both, a bench headed by HRERA Chairman KK Khandelwal and comprising member SC Kush took this decision recently.
The government has decided against issuing restraint orders to all promoters and brokers to refrain from charging commission more than what is prescribed. The brokers can’t charge the commission more than what is prescribed as per the Haryana Regulation of Property Dealers and Consultants Rules of 2009 under the Haryana Regulation of Property Dealers and Consultants Act of 2008.
Rule 10 gives one percent commission on agreed consideration value to be paid by the buyer and seller of the property. It implies that half percent by each on the finalization of the deal as per their agreement entered in the register of the dealer under valid receipt.
Furthermore, Khandelwal said that property dealers or brokers are indulging in malpractices in collusion with promoters and charging more than prescribed commission both from sellers and buyers.
Commission as high as five to 10 percent of the property value was allegedly charged by agents and the burden was ultimately shared by buyers.
Now all real estate agents have been notified not to charge commission more than what was prescribed in the rules. Doing so will be considered as an outright violation of the provisions of the law, he added.
The bench ordered a forensic audit of accounts of around two dozen guilty builders and brokers.
Besides that, some instances have been noticed by the authority where some property dealers were falsely representing services of a particular standard or grade and making false or misleading representation concerning approvals for various projects.
The HRERA Chairman said that certain real estate agents and brokers were also involved in this matter of issuing misleading advertisements for upcoming projects.
“It has been seen that some brokers/property dealers are involved in the sale of property in unauthorized colonies as well. A vigil is kept on such brokers so that their registrations can be canceled and criminal/civil action, as per law, initiated against them. It is now mandatory for the brokers to keep the copies of relevant approvals/plans, specifications, brochures, etc of projects where deals are facilitated by them,” Khandelwal said.
Licenses to brokers/property dealers are provided by Deputy Commissioners concerned under the Haryana Regulation of Property Dealers and Consultants Act, 2008. The registration of property dealers to negotiate/mediate real estate deals of a registered project is done by the Real Estate Regulatory Authority under Section 9 of the Real Estate (Regulation and Development) Act, 2016. Furthermore, the registration has then subjected the condition that the real estate agent should not go against the provisions of any other law as applicable to him.
He further added “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 a recommendation to the Deputy Commissioners concerned for withdrawal of their licenses”.
HRERA was in the process of prescribing a code of conduct for property dealers to make sure that property dealers abide by the norms so that there are no unfair trade practices, said Khandelwal.
The code of ethics will prescribe both additional books of accounts to be maintained by property dealers to the commission charged as per the law and also records of transactions which may be perused by the authority in case of a dispute between buyers and brokers.
