HARERA Fixes 1% Brokerage on Sale/Purchase in Real Estate Sector


Status as on- 31.10.2020

The HARERA has ordered a maximum of 1% brokerage to be charged on sale or purchase of property in the state of Haryana. Brokers not obeying the same may face criminal/civil action and cancellation of registration as well.


Some property dealers and brokers are indulging in malpractices in collaboration with promoters. They are charging commission upto 5% – 10% of the property value which is way more than the prescribed limit. The burden is ultimately shared by allottees.

The authority has noticed misrepresentation of projects regarding standard of services and approvals by the property dealers. Certain dealers were also indulged in misleading advertisements of upcoming realty projects and sale of properties in unauthorized colonies. The authority has ordered a forensic audit of accounts of around two dozen builders and brokers and keeping such brokers under strict watch.

Further, HARERA is in the process to prescribe a code of conduct for property dealers which will include maintenance of books of accounts and records of transactions in order to curb the unfair trade practices.

Decision by HARERA

Taking cognizance of the complaints about property dealers charging erratic commissions, the HARERA has decided to issue restraint orders to all promoters and brokers of registered real estate projects to abstain from charging commission more than prescribed as per the Haryana Regulation of Property Dealers and Consultants Rules of 2009 under the Haryana Regulation of Property Dealers and Consultants Act of 2008.

Rule 10 provides 1% commission on total agreed value of the property to be paid by the seller and purchaser of the property, i.e., 1/2% by each on the finalization of the deal or as prescribed under the agreement of sale.

All the agents have been alerted that charging commission more than the prescribed limit will be deemed as violation of law. Further, it is compulsory for all brokers to maintain copies of relevant approvals and plans, specifications, brochures etc of related projects.

The authority has ordered to cancel the registration of those brokers who do not have necessary documents and initiate criminal/civil action against the malafide agents as per the law.


The aforementioned decision by the authority is a fundamental step towards constraining the real estate agents from exploiting extra money from buyers and sellers. The brokerage being fixed will turn down the chances of overcharging ultimately protecting the interest of homebuyers. Further, check and audits will ensure removal of foul elements from the system, but a lot of potholes are left yet to be filled the authority for a smooth regulation of real estate sector.

DisclaimerThe above article is based on the interpretation of the related laws and judicial pronouncements. The readers are expected to take legal advice before relying on this article. The author can be reached at support@centrik.in

Leave a Reply

Your email address will not be published. Required fields are marked *