MahaRERA has recently clarified the rules related to brokerage refunds after flat booking cancellations.
The issue came into focus after a recent case involving two homebuyers who had booked two apartments in the same housing project. Later, due to financial difficulties, they cancelled one flat and requested a refund. During the refund process, the developer informed them that brokerage charges had already been paid to a real estate agent for the sale of the apartments.
The buyers alleged that the broker had increased the commission amount unfairly and had not clearly informed them about the brokerage charges during booking. Moreover, they stated that they were convinced that the individual involved in selling was dealing with the developer directly as a sales executive and not as a broker from a brokerage house. Nevertheless, the developer contended that the purchasers had cancelled their deal in 2024, received the refund money, and complained a year later.
In deciding on the matter, the MahaRERA found out that despite the buyers relying on the invoice issued by the broker, they lacked any documents to back up their claims. Owing to the lack of any document, MahaRERA said that it cannot validate the claims of the purchaser with respect to the refund of money paid to the broker.
The ruling has highlighted the growing confusion around brokerage refund processes in India’s real estate market. Experts say many buyers pay brokerage fees without clearly understanding cancellation policies, refund rules, or commission structures. In property, brokerage usually falls under the category of payment of services like search, visiting the sites, negotiating, and documentation. In view of that, getting a refund could become complicated if the broker had performed almost all the tasks. However, buyers could ask for refunds in case of delayed projects, misleading information, and unclear refund criteria.
With all this, MahaRERA highlighted the importance of written agreements and proper documentation in property transactions. Buyers are advised to keep documents of the brokerage deal, proof of payments, GST receipts, and cancellation policy before making any payments. Experts have also emphasized that buyers should keep copies of emails and online chat conversations to avoid any problems in the future.
So, when buying flats every buyer should understand the process clearly from start to end. With transparency and documentation, the refund process of the brokerage could be made easier.
