Real Estate agent boasts of zero brokerage breaking MahaRERA regulations

As per the regulations, if the builder or real estate agent decides to issue an advertisement, then they have to mention the MahaRERA number and MahaRERA website in the ad. Accordingly, the real estate agent forgot to mention the RERA registration number and website details.

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Several times, real estate agents are seen charging two per cent brokerage while trading a residence. The brokerage, that starts from a mere ₹1000 has now reached lakhs of rupees. However, in order to end the malpractice of two per cent brokerage, a Real Estate Agent had published a full-page advertisement in several newspapers on Tuesday, stating that they will stop the malpractice and halt the collection of the two per cent brokerage completely.

However, while doing so, the company, seemed to miss the MahaRERA (Maharashtra Real Estate Regulatory Authority) law which states that no promotion of a residence can be advertised without mention of MahaRERA registration number on the ad. Accordingly, a complaint has been filed by the Mumbai Grahak Panchayat with MahaRERA against the company for the violation of the law.

Since the enactment of the MahaRERA Act, it is mandatory for everyone to register including the builder and the real estate agent to MahaRERA. Without the registration, the builder or real estate agent cannot conduct the business. Even the merchandising and construction websites are bound to be registered. If the builder or real estate agent decides to issue an advertisement, then they have to mention the MahaRERA number and MahaRERA website in the ad. If they fail to follow the regulation, then MahaRERA takes action accordingly. 

On Tuesday, ‘RK’s Homes Solutions’ the real estate company issued an advertisement in several newspapers claiming that they don’t consume the two per cent brokerage and aim to end the practice. The advertisement further stated that the consumer will have to pay just a small amount as service charges which will be refunded as well.

Mumbai Grahak Panchayat President Adv. Shirish Deshpande told Mumbai Live that although the real estate company intended to end the two per cent brokerage scheme, they forgot about MahaRERA regulations and on the full-page advertisement they did not mention even once, the MahaRERA registration number and also forgot to mention the MahaRERA website.

Therefore, Deshpande asked that whether the company had registered with MahaRERA or not. If the company had not registered, then he demanded a severe action against the company and real estate agent. However, if the company had registered then they should be penalised for missing to display MahaRERA details on the advertisement.

While the Panchayat has complained, the action against the same lies in the hands of MahaRERA who is yet to make the decision.

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