In a first, the Haryana Real Estate Regulatory Authority(HRERA) has approved a maximum one per cent brokerage on sale or purchase ofproperty in the state, officials said on Tuesday.
Taking cognizance of the complaints that property dealerswere charging arbitrary commission both from sellers and buyers, a bench headedby HRERA Chairman KK Khandelwal and comprising member SC Kush took thisdecision recently.
For registered real estate projects, it has been decided toissue restraint orders to all promoters and brokers to refrain from chargingcommission more than what is prescribed as per the Haryana Regulation ofProperty Dealers and Consultants Rules of 2009 under the Haryana Regulation ofProperty Dealers and Consultants Act of 2008.
Rule 10 provides one per cent commission on agreedconsideration value to be paid by the seller and purchaser of the property,i.e., half per cent by each on the finalization of the deal as per theiragreement entered in the register of the dealer under valid receipt.
Elaborating, Khandelwal said that property dealers orbrokers are indulging in malpractices in connivance with promoters and chargingmore than prescribed commission both from sellers and buyers.
Commission as high as five to 10 per cent of the propertyvalue was allegedly charged by agents and the burden was ultimately shared byallottees.
Accordingly, all real estate agents have been cautioned notto charge commission more than what was prescribed in the rules. Doing so wouldbe deemed as an outright violation of the provisions of the law, he added.
The bench ordered a forensic audit of accounts of nearly twodozen erring builders and brokers.
Furthermore, instances have come to the notice of theauthority that some property dealers were falsely representing services of aparticular standard or grade and making false or misleading representationconcerning approvals for various projects.
The HRERA Chairman said that certain real estate agent andbrokers were also involved in issuance of misleading advertisements forupcoming projects.
"It has been noticed that some brokers/property dealersare indulging in sale of property in unauthorised colonies as well. A vigil iskept on such brokers so that their registrations are cancelled andcriminal/civil action, as per law, initiated against them. It is mandatory forthe brokers to keep the copies of relevant approvals/plans, specifications,brochures etc of projects where deals are facilitated by them," Khandelwaladded.
The licenses to brokers/property dealers are granted byDeputy Commissioners concerned under the Haryana Regulation of Property Dealersand Consultants Act, 2008. The registration of property dealers tonegotiate/mediate real estate deals of a registered project is done by the RealEstate Regulatory Authority under Section 9 of the Real Estate (Regulation andDevelopment) Act, 2016 and the registration is then granted subject to thecondition that the real estate agent shall not contravene the provisions of anyother law as applicable to him.
"We have noticed that some property dealers/agents ...do not have necessary documents. They shall also be penalised, includingcancellation of their registration with the Authority along with recommendationto the Deputy Commissioners concerned for withdrawal of their licences,"he said.
HRERA was in the process of prescribing a code of conductfor property dealers to make sure that they abide by such norms so that thereare no unfair trade practices, said Khandelwal.
The code of ethics would prescribe not only additional booksof accounts to be maintained by property dealers to commission charged as perthe law and also records of transactions which may be perused by the authorityin case of inter se dispute between buyers and brokers.