Chandigarh, Oct 27 (IANS) In a first, the Haryana Real Estate Regulatory Authority (HRERA) has approved a maximum one per cent brokerage on sale or purchase of property in the state, officials said on Tuesday.
Taking cognisance of the complaints that property dealers were charging arbitrary commission both from sellers and buyers, a bench headed by HRERA Chairman KK Khandelwal and comprising member SC Kush took this decision recently.
For registered real estate projects, it has been decided to issue restraint orders to all promoters and brokers to refrain from charging 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 provides one per cent commission on agreed consideration value to be paid by the seller and purchaser of the property, i.e., half per cent by each on the finalisation of the deal as per their agreement entered in the register of the dealer under valid receipt.
Elaborating, Khandelwal said that property dealers or brokers are indulging in malpractices in connivance with promoters and charging more than prescribed commission both from sellers and buyers.
Commission as high as five to 10 per cent of the property value was allegedly charged by agents and the burden was ultimately shared by allottees.
Accordingly, all real estate agents have been cautioned not to charge commission more than what was prescribed in the rules.
Doing so would be deemed as an outright violation of the provisions of the law, he added.
HRERA was in the process of prescribing a code of conduct for property dealers to make sure that they abide by such norms so that there are no unfair trade practices, said Khandelwal.
Furthermore, instances have come to the notice of the authority that 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 real estate agent and brokers were also involved in issuance of misleading advertisements for upcoming projects.
The code of ethics would prescribe not only additional books of accounts to be maintained by property dealers to commission charged as per the law and also records of transactions which may be perused by the authority in case of inter se dispute between buyers and brokers.