Brokerage issues to come under MahaRERA ambit

Mumbai Real Estate Regulatory Authority will now take up the problems of brokerages. This rule has now been issued in the rule book by the housing department from 6th of June.

It has been said that the cost of the construction and the development will not include in the brokerage and marketing for any of the particular apartments. Even though there the expenses are huge, the amount must be deposited in a separate bank account. 

More to Know…

The developer had to create and maintain a different bank account where the money for the property development will be deposited and will be used only when the developer will need for the construction and its other purposes, but no matter what reason, it has to be related to the building developing only.

‘’RERA registration comes with a status for brokers in the industry. There are above one lakh brokers in Maharashtra but only 12,000 are registered.’’ Said MahaRERA chairman Mr. Gautam Chatterjee at the National Convection for Brokers which was organized by SAI estate consultants and the confederation of Real Estate Brokers Association of India.

Here, the brokers or developers not only will have to open their bank accounts but also need to register themselves. Basically, at first, if you are a broker, you will need to register yourself and then you will have to open a bank account for the money you receive for the real estate development. The broker must have the license, registration number and the license symbol for further official work including the construction.

The further notice claims that ‘’ 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.’’

The main cause is to eliminate the marketing with the money of building construction plus since it is illegal to not be a registered broker with no license, the expenses after construction work are rising higher every new day. It is felt by most of the people who belong to this industry that marketing, advertising, and sale must not be conducted by the money that is being invested for the construction, and the buildings. Not only this is applicable for those who are known for residential construction, but also the commercial construction.

The project amount must be kept aside and the marketing amount must be kept aside so that both the parts are well maintained instead of the imbalance of either the marketing going high but the quality construction is left behind. In a recent interview with one of the agents belonging from the real estate industries said ‘’ With RERA covering brokerage we are sure that we will finally get our dues. We had also recommended the standardization of brokerage fees which is yet to be approved. However, this is a good move. ‘’ Even though a lot of brokers have shown wishes against this rule but they are compelled to do what has already been said now. This anyway has become an issue for illegal property developers since the banking process has been linked with their registered number and cards. So even if you wish to spend your black money after some of the few construction works in Maharashtra, you are bound to get your name registered as a broker, get your license, open a bank account for construction money and then start your property.