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MahaRERA directs real estate agent to pay 1% brokerage to homebuyer who purchased a flat through him
MahaRERA has held that a registered real estate agent must honour his written commitment to share 1% of the brokerage with the homebuyer
The Maharashtra Real Estate Regulatory Authority (MahaRERA) directed a real estate agent to pay 1% of the brokerage he received from a developer to a homebuyer who purchased a flat in the Mumbai real estate market through him. The order came after the homebuyer complained that the broker failed to honour a written promise to share 1% of the total 2% brokerage he earned from the developer with the buyer.
The case
A Mumbai homebuyer, in a complaint to MahaRERA, said the real estate agent was entitled to receive a commission of 2% to 2.5% from the promoter (developer) for facilitating the transaction. The homebuyer said they had mutually agreed that 1% of this commission would be passed back to him.
This arrangement was confirmed through an email sent by the agent’s registered email ID on March 31, 2025, before the agreement for sale was executed on April 17, 2025. The homebuyer alleged that despite repeatedly following up, the agent neither paid the promised amount nor continued responding to his calls and communications.
The homebuyer had purchased an apartment in a high-rise project in Mumbai's Kandivali East area.
Real estate agent's response
According to the MahaRERA order, the agent did not file a reply to the complaint despite being given multiple opportunities by MahaRERA. The regulator, therefore, decided the matter ex parte. MahaRERA noted that the agent neither denied the March 31 email nor produced any evidence showing that the promised 1% amount had been paid.
MahaRERA's order
According to an order passed by MahaRERA on August 5, 2026, the key issue before it was whether the written promise made by the registered real estate agent could be enforced under the regulatory framework. The authority relied on Section 10(c) of the Real Estate (Regulation and Development) Act, 2016, which prohibits registered real estate agents from engaging in unfair trade practices or making false or misleading representations concerning the services they offer.
The MahaRERA, in its order, said that in the present case, the real estate agent made a written promise to share 1% of the transaction cost with the complainant (homebuyer), thereby facilitating the transaction. However, even after the completion of the transaction and despite much follow-up, the agent has failed to honour the said promise or provide any explanation for such failure.
"In view of the above, MahaRERA is, therefore, of the considered view that the respondent’s conduct amounts to a misleading representation and an unfair trade practice within the meaning of Section 10(c) of the RERA. The respondent, being a registered real estate agent, was required to act fairly and transparently and to honour the written commitment made while facilitating the sale transaction," the MahaRERA said in its order.
"The respondent-real estate agent is hereby directed to pay the complainant an amount equal to 1% of the total sale consideration mentioned in the registered agreement for sale dated 17-04-2025, excluding GST, stamp duty, registration charges and other statutory charges within a period of 30 days from the date of this order. If the respondent fails to comply with the directions contained in this order within the stipulated period, it shall be liable for further penal action under Section 65 of the RERA," the MahaRERA said in its order.
Legal experts say real estate agents are bound by commitments made in writing
According to legal experts, MahaRERA has treated failure to honour the written promise as ‘unfair trade practice’ under RERA.
Also Read: Can homebuyers claim a brokerage refund after cancelling a flat booking? MahaRERA explains
"An interesting order which highlights that a registered real estate agent is bound by the commitments made in writing while facilitating a transaction. MahaRERA has treated the failure to honour a written commitment to share commission with the homebuyer as a misleading representation and unfair trade practice under RERA," said Trupti Daphtary, an advocate and solicitor based in Mumbai.
