In a landmark order, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued a directive mandating that real estate sale agreements facilitated by registered agents must now explicitly document all associated commissions, brokerage fees, and other charges.
This inclusion in the standard model agreement aims to clarify financial responsibilities and uphold the rights of real estate agents, with the added benefit of bringing greater transparency and accountability to property transactions, as published by the The Times Of India.
Real estate agents view the order as a significant step forward. By formalizing commission payments and binding developers and buyers alike to clear payment terms, the directive is expected to minimize payment disputes, enhance timeliness, and hold promoters accountable to their commitments.
“This directive confirms that agents have a right to brokerage when they enable transactions,” noted one real estate agent, expressing confidence that the new measure will foster a more structured industry and improve trust in agents’ roles.
This development comes as a result of collaboration between MahaRERA and the National Association of Realtors (NAR)-India, a self-regulatory organization of real estate agents. Following extensive discussions that began after the Maharashtra state housing department’s 2019 Gazette notification, NAR-India worked closely with MahaRERA for over a year to advocate for agent protections. This effort was aimed at addressing long-standing issues, including the need for clearer recognition of agents’ contributions in property transactions.
“Real estate agents often lacked the formal protections needed when guiding clients through transactions,” said Pramod Vyas, vice-chairman of NAR-India’s RERA committee. “Now, with the sale agreement documenting commission payments, agents have greater assurance that their work is acknowledged and protected.”
MahaRERA’s directive is expected to enhance accountability by legally binding both developers and agents to agreed-upon financial arrangements. For agents, it provides formal documentation proving their entitlement to fees, while for developers, it clarifies their obligation to honor commitments made to agents. This move toward a more regulated system offers much-needed protections for agents and adds a layer of structure to what has traditionally been an informal sector.
By including commission clauses in sale agreements, MahaRERA has paved the way for a more transparent real estate transaction process, where all parties are clear on financial terms from the outset. Agents are now bound by both developers and buyers, effectively cementing their role in transactions.
This order is part of a series of actions taken by MahaRERA to improve transparency and fairness for property buyers in Maharashtra. Previously, the authority mandated that developers disclose detailed information about parking spaces in sale agreements following buyer complaints. Additionally, MahaRERA issued a draft order requiring developers to provide comprehensive details about the size, area, and layout of all shared amenities within the project, including both individual buildings and overall layouts. These measures, like the new agent commission clause, aim to prevent disputes and foster trust in the real estate process.
The inclusion of transaction documentation for agents offers a way to recognize and validate the work agents do to facilitate real estate sales, ensuring they are respected as key players in the sector. According to Vyas, “The directive organizes the role of agents, requiring their involvement to be formally documented and respected in transactions.” With the transaction now recognized formally in the sale agreement and allotment letters, agents can expect a more structured professional environment where their contributions are acknowledged.
With MahaRERA’s recent order, the Maharashtra real estate sector stands to gain increased transparency, reduced disputes, and a fairer process for agents, buyers, and developers alike. This formalization of agent roles and responsibilities through sale agreements sets a new standard for accountability, strengthening Maharashtra’s real estate market by ensuring that every participant’s role and compensation are clearly outlined and enforceable.