Brokerage is a key factor to find a comfortable home in any metro city in India. This is often ignored by authorities. But the Maharashtra government has made a revolutionary decision regarding the brokerage issue. The housing department of Maharashtra made some positive amendments in the rules on June 6 of this year. As per this new rule the Maharashtra Real Estate Regulatory Authority (MahaRERA) can now treat the brokerage as a legal matter. This in turn, gave somewhat government reorganization to brokers and brokerage charges.
According to this new amended law, the marketing charges and brokerage charges cannot be added to the development charge or construction cost of a residential project before selling an apartment. These all expenses are part of the project cost and cannot be treated as separate charges. It also states that, brokerage charges no longer can be deposited to separate accounts. Earlier a buyer had to deposit brokerage directly to the brokers. This often led to unnecessary problems. That means, now brokerage charges can be regulated as per the government rules to give a safe guard to the buyers. Besides that, the new rule will also protect the brokers. Because, if in any case brokerage charge is due then the broker may approach the legal authority to claim his dues. Hence, this state government has legalized the brokerage.
From now on, every construction developer must have one account to deposit the construction cost only. The money of this particular account cannot be used in other areas like marketing, awareness campaign etc. Property experts applauded this decision of Maharashtra government.
The notice also states that if the transaction is being done between the promoter and allottee who has purchased any apartment from that promoter through a broker then the broker must be given his due. The broker has to be given a service charge or remuneration including taxes as per the usual agreement. Both allottee and developer have to pay brokerage charges to that agent as per mutual agreement. A broker has to be registered with the authority to avail this facility.
But, there are still many things to consider. It may seem a good move that now since the marketing charges and brokerage charges is removed consumers will be benefited. But that is not true. In the end one buyer still has to pay brokerage charges and other charges while purchasing the flat. That’s why many developers are still in a dilemma about this new law.
It is true that advertisement and marketing strategies are the key factors to influence the buyers. Hence, it is an integral part of any project development. Brokerage is also a often an important part in case of a real estate transaction. The developers often she’ll a great amount of money in advertising and marketing and brokerage. Thus, these should be included in the project cost.
Whatever the other factors may be, brokers are really happy in this move. They believe that this move has finally recognized their efforts in the real estate. Many agents hope that government will now start a process of registration for every broker. This will also help to obtain a standard brokerage charge so that the consumers are also saved from harassment. Hence, for the brokers, this is definitely a great news.