In a Benchmark Decision MahaRERA Mandates Transparent Payment Terms for Real Estate Agents in Sale Agreements

Defining Agent Entitlements: Clear Commission and Brokerage in Agreements

Mumbai:In a landmark move, MahaRERA has issued a new directive requiring developers to specify agent commissions, brokerage fees, and charges in agreements for sale where a registered real estate agent is involved. This mandate not only reinforces the formal role of agents in transactions but also ensures transparency and accountability in real estate dealings, which have historically lacked clear compensation protocols for agents.

An Organized Industry: Minimizing Disputes and Ensuring Timely Payment

The directive aims to streamline the payment process, making it mandatory for developers to acknowledge and honor their commitments to agents. Real estate agents view this order as a significant step toward preventing payment delays and minimizing commission disputes, with a clear record of compensation to support fair and prompt transactions. According to industry experts, this mandate also makes promoters accountable for timely and full payments.

A Joint Effort for Recognition: NAR-India and MahaRERA’s Collaborative Achievement

This initiative builds upon the foundational work of the National Association of Realtors (NAR)-India, which has collaborated with MahaRERA for over a year to gain rightful acknowledgment for agents. Pramod Vyas, vice-chairman of RERA at NAR-India, shared that the order’s issuance follows a 2019 Gazette by Maharashtra’s Housing Department and signifies an overdue recognition of agents’ contributions in real estate.

Transforming Real Estate Brokerage into a Respected Profession

In a sector that has often operated informally, this regulation represents a decisive move to transform real estate brokerage into a respected and organized profession. Real estate agents, now documented within agreements, gain validation as key players in transactions, marking a significant step toward establishing a white-collar standard for the industry.

Strengthening Consumer Protection: Comprehensive Project Transparency

Earlier, MahaRERA introduced measures mandating the inclusion of all parking details in allotment letters to address ongoing concerns regarding parking allocations. Additionally, MahaRERA's draft order compels developers to disclose comprehensive details of shared amenities, including size, area, and location of facilities within both building interiors and the project layout. This initiative empowers consumers, ensuring clarity in promises made by developers and reinforcing the push for transparency across Maharashtra’s real estate industry.

This new mandate from MahaRERA represents not only a victory for real estate agents but a structured approach toward organizing the sector, protecting agents, and instilling confidence among consumers and industry stakeholders alike.