Home seekers are always advised to make sure that the sale/purchase agreement is in the prescribed form, while entering into an accord with a builder.

Otherwise, home buyers may find that the agreement provided by the builders has additions and alterations, working to the benefit of the developer.

The agreements drafted by builders may feature terms and conditions that are contrary to the provisions of the Maharashtra Ownership of Flats Act and Rules, as well as the Maharashtra Cooperative Societies Act.
To combat this, the authorities have brought out a prescribed agreement form, to protect the interests of the buyers.

Here are some particulars of that prescribed form:

The agreement should specify the date, by which the possession of the flat is to be handed over to the purchaser .

It should clearly mention the carpet area of the flat, including the area of the balconies, which should be shown separately.

It should specify the price of the flat, plus other costs, including the proportionate price of the common areas and facilities, which are to be paid by a purchaser and the intervals at which the instalments should be made.
The agreement should inform the purchaser of the nature of the organisation that is to be constituted by the persons, who have taken or will take the remaining flats in the building.

It should include the nature, extent and description of the common area and facilities. The agreement should clearly state the use for which the flat is intended and also impose restrictions, if any.

The agreement should also have a certificate by an attorney-at-law or advocate , under clause (a) of sub-section 2 of section 3.

It should also have attachments of the property card or extract of village forms VI, VII and XII or any other relevant revenue record, showing the nature of the title of the promoter to the land, on which the flats are constructed or are to be constructed.

The agreement should also have the plans and specifications of the flat, as approved by the concerned local authorities .

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This post was submitted by Harshit Agrawal.

1) First Option

A real estate agent works for a licensed broker or brokerage house. When he brings a client to the table, either for buying or selling, an agreement is signed between the client and the brokerage house. Typically when a sale is made, an average of 6% of the sale price is commission for the brokers. It is not always a straight split, but close to half, which goes to the broker representing the seller and the buyer.

Once the commission is divided up between the houses, the brokers then decide how much to pass down to the agent who actually did the leg work. This amount varies depending on experience, time with the company and the productivity level of the representative. A brand new representative may only get thirty percent of the cut where as a seasoned pro that brings in a ton of business, may get half or more of the proceeds.

2) Second Option

Another option is that the agent gets all of the commission, but pays a monthly fee to the brokerage house. This is sort of a rent. He gets an office and uses the company name to back his reputation. This is an attractive deal to many representatives, because they pay the same amount every month, no matter how much they make. For new people to the business who have not built up a client list and do not benefit from word-of-mouth yet, the traditional split is usually preferable, because they may not make enough every month to make the set payment.

3) Third Option

There are some factors that eat into the final profit made by the brokerage house and the representative. If the house is a franchise, there is a fee that must be paid to them out of every commission. Sometimes referrals come into play as well. If a brokerage house sends a customer to you, they will want a referral fee. There is a percentage that also comes out of the commission.

Typically, this commission is paid by the seller at closing. However, depending on the type of market, this is negotiable. Another negotiable point is how the commission is divided. If you are having a difficult time in selling, because the market is flooded with houses, you may want your representative to offer a bigger cut of the commission to the buyer