MahRERA-The Maharashtra Real Estate Regulatory Authority has brought into effect a landmark new provision aimed at boosting realty transaction transparency. Clause 15A was added to the model sale agreement. This gives real estate agents and brokers the basic right to be entitled to fees, commissions, or otherwise as remuneration for services provided. The initiative targets the present obstacles faced in brokerage payments and serves to bring in more accountability to the real estate sector. 

According to Jinal Mehta, partner at Cyril Amarchand Mangaldas, Clause 15A in the Model Sale Agreement Format (AFS) is expected to clarify which side should pay brokerage fees. It enables the seller and the buyer to share the brokerage or assign it to one another, on mutual agreement. This clarity is likely to limit the scope of any misunderstanding related to the payment obligation and bring more transparency in the process. 

Clause 15A also includes provisions for addressing delays or non-payment of brokerage fees, which will further help prevent disputes between involved parties. While inclusion of the clause is not mandatory, MahRERA recommends that, in the absence of this provision in the AFS, parties should enter into a separate written agreement outlining specific payment terms, deadlines, and consequences for breach. 

The introduction of this clause is expected to benefit buyers by ensuring they are fully informed of any fees payable to brokers as part of the sale agreement. Alay Razvi, managing partner at Accord Juris, emphasized that the clause would provide buyers with clear visibility into brokerage costs, helping to avoid disputes between the seller and agent.  

Legal experts, including Kunal Sharma from Singhania & Co., advise buyers to carefully review the sale agreement to ensure that all financial obligations, including those related to brokerage fees, are clearly outlined. This includes specifying payment structures, timelines, and mechanisms for resolving disputes in case of payment failures. Buyers should ensure these aspects are addressed to protect their interests and avoid potential legal complications.