The Maharashtra Real Estate Regulatory Authority (MahRERA) has introduced a significant update to the model sale agreement. Clause 15A of the agreement now recognises the right of real estate brokers to receive clear and fair compensation for their services, whether in the form of commissions, fees, or remuneration. This change aims to address longstanding issues surrounding brokerage payments, ensuring both buyers and sellers are fully informed about their financial obligations.
Clause 15A is part of the Available for Sale (AFS) document, which builders use as a reference for drafting individual sale contracts. By clarifying the responsibility for brokerage payments—whether it lies with the allottee, the promoter, or both parties—this update seeks to prevent misunderstandings and disputes between real estate agents, buyers, and developers. Jinal Mehta, partner at Cyril Amarchand Mangaldas, highlighted that this addition will improve accountability and reduce conflicts, ensuring that all parties are clear on their roles. Although Clause 15A is not mandatory, its inclusion in the AFS is highly recommended for ensuring a structured and transparent approach. In cases where it is not included, experts suggest that brokers, promoters, and buyers should formalise a separate written agreement detailing payment obligations, milestones, and penalties for delays. The new clause is expected to have a direct impact on buyers by bringing more transparency to all financial dealings related to real estate agents. Alay Razvi, managing partner at Accord Juris, noted that this change ensures buyers are aware of any fees or commissions payable to the agent, potentially preventing future disputes.
However, experts caution buyers to thoroughly review their agreements to safeguard their interests. Kunal Sharma, partner at Singhania & Co., emphasised that the agreement should clearly outline payment terms, the timeline for payments, and the responsibility for covering brokerage fees. He also pointed out that a breach of Clause 15A by the promoter would not affect the buyer’s right to possession or ownership of the property. To avoid legal complications, buyers must ensure the agreement also includes a robust dispute resolution mechanism for any failure to make payments as per the terms outlined in Clause 15A. Failure to address these aspects could result in financial liabilities, delayed possession, and potential legal issues. This development marks a step forward in creating a more transparent and structured real estate market, giving buyers greater confidence and clarity when engaging with property transactions.
