MahaRERA Orders Broker to Share 1% Brokerage With Homebuyer

The Maharashtra Real Estate Regulatory Authority has directed a registered real estate agent to pay a homebuyer an amount equal to 1% of the total sale consideration in a Kandivali East apartment purchase, after the agent failed to honour a written promise to share part of his developer commission.

The order, passed on 5 August 2026, sets a clear precedent: written commitments made by registered agents while facilitating a transaction are enforceable under RERA.

What the Homebuyer Alleged

The homebuyer filed a complaint with MahaRERA stating that the agent was entitled to a commission of 2% to 2.5% from the developer for facilitating the sale.

Before the agreement for sale was executed on 17 April 2025, the agent confirmed via email from his registered email ID on 31 March 2025 that he would pass 1% of this commission back to the buyer.

After the transaction was completed, the agent neither made the payment nor responded to repeated follow-up communications.

Also Read: Can Homebuyers Claim Parking Rights if Not in Sale Agreement?

How MahaRERA Ruled

The agent did not file a reply to the complaint despite multiple opportunities. MahaRERA decided the matter ex parte, noting the agent had neither denied the March 31 email nor produced any evidence that the promised amount had been paid.

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 about the services they offer.

MahaRERA held that the agent's failure to honour a written commitment while facilitating a sale amounted to a misleading representation and an unfair trade practice under this provision.

• Agent directed to pay 1% of the total sale consideration, excluding GST, stamp duty, registration and other statutory charges
• Payment to be made within 30 days of the order
• Non-compliance will attract further penal action under Section 65 of RERA

What Legal Experts Say

Trupti Daphtary, an advocate and solicitor based in Mumbai, described the order as significant, noting that MahaRERA has treated the failure to honour a written commitment to share commission with a homebuyer as a misleading representation and unfair trade practice under RERA.

She said the ruling makes clear that a registered real estate agent is bound by commitments made in writing while facilitating a transaction.

Also Read: Can Agents File Brokerage Complaints Before MahaRERA? Order Explained

Why This Matters Beyond One Case

The ruling is notable for what it establishes rather than what it resolves. Commission-sharing arrangements between agents and buyers are not uncommon in Mumbai's real estate market, but they have rarely been tested before a regulator.

By treating a written promise as enforceable and its breach as an unfair trade practice, MahaRERA has raised the compliance bar for registered agents.

Any written commitment made during a transaction whether in email or document form now carries regulatory weight, not just moral expectation.

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