The Haryana Real Estate Regulatory Authority (HRERA), Gurgaon has issued a warning to 1,840 real estate agents registered with it and directed them against arbitrary charging of brokerage fees to buyers and sellers of properties.
The authority said on Friday it had received several complaints in which real estate agents charged sellers and buyers more than 0.5%.
The HRERA said the Haryana Property Dealers and Consultants Regulations, 2009 provided for charging only half a percent commission each to buyers and sellers.
“The authority has decided to solve this problem and is working to blacklist these agents, who charged the brokerage arbitrarily. We will revoke, blacklist and debar agents or brokers who have committed the offense of exorbitant commissions in violation of the rule,” HRERA Chairman Dr. KK Khandelwal said.
The authority said that some real estate agents in another malpractice engage in the sale of land or apartments in the projects, which are not registered with it.
The HRERA said that even when issuing a letter of intent, brokers enter into an agreement with the promoters and block a number of units allocated to them to enter into agreements in the market with the beneficiaries, even when the project is not registered with the authority.
“Because of this, a large number of assignees are deceived by brokers as before registration, neither sanctioned plans are available nor project specifications are known to buyers,” the authority said.
HRERA said such deals are made only on presumptions and later when the promised facilities and services are not found then the beneficiaries are left behind.
“We have noticed that brokers send emails to encourage buyers to buy property in projects that are not even registered, while real estate agents are required to provide all project information and valid documents. so that at the time of booking or closing the deal of any land or apartment, the beneficiary is well informed and can decide whether or not to invest in a project,” said Dr Khandelwal.