Can Agents File Brokerage Complaints Before MahaRERA? Order Explained

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has dismissed a complaint filed by a real estate agent against a developer seeking payment of brokerage. The authority held that disputes relating to brokerage or commission payments do not fall within its jurisdiction under the Real Estate (Regulation and Development) Act, 2016.

The complaint was filed by a registered real estate agent who alleged that he had introduced prospective buyers to a residential project and was subsequently denied brokerage after the transaction was completed.

Background of the Case

The dispute related to a residential unit in the Arkade Aura project located in Santacruz West, Mumbai. According to the complaint, the agent claimed that he had initially connected the buyers with the developer and had been involved in discussions regarding the purchase.

The agent alleged that despite his efforts in introducing the buyers and facilitating interactions, the final transaction was executed through another source, resulting in the loss of his brokerage entitlement.

Developer's Stand Before MahaRERA

The developer opposed the complaint and argued that the agent was not involved in the final transaction concerning the specific apartment that was eventually purchased. The developer maintained that the buyers were introduced to the purchased unit through a different referral source.

It was further submitted that the complainant did not participate in the negotiations or completion of the final transaction for the concerned apartment.

MahaRERA's Observations

While examining the matter, MahaRERA noted that there was no written brokerage agreement between the parties. The authority observed that the complainant's claim was based largely on prior interactions and alleged verbal understandings.

The regulator stated that determining entitlement to brokerage would require examination of contractual rights, evidence, and obligations that go beyond the scope of proceedings under the RERA framework.

• No written brokerage agreement was produced before the authority.
• The claim involved questions of contractual entitlement.
• MahaRERA found that such disputes require adjudication through appropriate civil remedies.
• The complaint was therefore dismissed on jurisdictional grounds.

Significance of the Order

The order clarifies that MahaRERA's role is limited to matters specifically covered under the RERA Act. Disputes relating to brokerage payments, commission claims, and contractual arrangements between agents and developers are not automatically maintainable before the authority.

The ruling highlights the importance of formal written agreements in brokerage transactions and reinforces the distinction between regulatory disputes under RERA and private contractual disputes.

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