To streamline the functioning of real estate brokers in Gurugram, the Haryana Real Estate Regulatory Authority (H-Rera) will come up with a ‘code of conduct’ for brokers and property dealers by the end of next month.
Officials from the authority said the move is aimed at ensuring that the dealers do not indulge in unfair trade practices.
The authority will also reach out to the broker community and ensure that there is a wider compliance with regard to the norms as prescribed in the Rera Act, the officials said, adding that at present there are 1,800 registered brokers with H-Rera, Gurugram.
KK Khandelwal, chairman of H-Rera, Gurugram, said that the Rera Act offers a real estate agent a formal and legal recognition, while defining their responsibilities and duties. “We have come across several instances where property dealers falsely represented products and services, and misled customers. The proposed code of conduct will resolve these issues,” he said.
The code will also ensure that brokers maintain record of transactions and do not charge more than 1% commission rate on the sale of properties, the H-Rera chief said, adding that there will also be a provision for imposing a penalty in case of non-compliance by a real estate agent.
The brokers are not very enthused with the proposed code of conduct or requirement of registration by the authority. “The proposed code of conduct will further make it difficult for brokers to operate as the realty market is already facing slowdown. The cost of registration with H-Rera is very high and there is no support from the authority,” said Ravinder Agarwal, president, Association of Certified Realtors of India (Gurugram chapter).
Rajiv Sinha, a property consultant, said that the brokers are not finding any benefit from associating with the regulator. “Most of the brokers are engaged in secondary sales, so they avoid registering themselves with the authority,” he said.
The brokers are worried about the compliances required by the proposed code of conduct. “The move will put more burden on us. Also, the authority must involve brokers in the exercise,” said Sanjeev Thakur, a city-based broker.