SCHEDULE OF RATES OF COMMISSION
TO BE STRICTLY ENFORCED!!!.
WITH EFFECT FROM 15th April – 2006 (Amended)

The Estate Agents Association of India has fixed the following uniform SCHEDULE of Rates of commission for its members, payable by their clients on different types of transactions handled by them.

1. SALE - PURCHASE

Where any immovable property is transferred or agreed to be transferred by way of sale or exchange or whether by / way of admitting as a member or by way of transfer of shares in a Co-operative Society or Company or any other Association of persons or by way of any agreement or arrangement in any other manner what so ever including Transfer of Development rights or FSI or Long Term Transfer of Development Rights, commission at the following rates on the total consideration amount (inclusive of loan amount) and /or differed payment, if any, shall be paid as under :

1) Where a member acts for both the Buyer and Seller commission at the rate of 2% each shall be paid by both the Buyer and Seller.

2) Where a member acts only for the Buyer or the Seller Commission at the rate of 2% shall be paid by the party for whom the member acts.

Any transaction of immovable property includes all transaction covered under Definition given in Section 269 U Chapter XX-C of the Income Tax-Act, 1961 and also under Transfer of Property Act, 1882.

Note : In the event, a company is taken over, with the express or implied intention of acquiring the immovable property of the company, then 2% of the MARKET VALUE of the property, whichever, higher will have to be paid by the Vendor and purchases to the agent, as his commission / brokerage.

The above commission at the aforesaid rates shall, unless otherwise agreed to, be paid a s under :

1) 25% of the commission shall be paid forthwith to the member at the time of payment of earnest money or token amount whether simultaneously accompanied by execution of an Agreement or Deed of Transfer or not, by way of non-refundable service charges and out of pocket expenses.

2) 75% of the commission, to be paid on receipt of allotment letter or on signing of agreement or on possession or on receipt of full payment WHICHEVER IS EARLIER

II. GOODWILL

1) Commission @ 5% on the total consideration of the property, shall be due and payable to the member by both the Purchaser and the Seller on the Purchaser price and sale price respectively of any premises, where goodwill and/or consideration is payable.

III. (A) LEASE / LEAVE & LICENSE / BUSINESS CENTRE

In case of Lease / Leave and License / Business Centre Agreement, commission @ 2 months rent AND 2% of the deposit amount, becomes due & payable, BOTH by the Lessor / Licensor / Business Centre owner AND by the Lessee / Licensee / Occupier of the Business Centre; to the broker / brokers concerned. The above commission is payable whether the period of Lease / Leave and Licensee, Business Centre ranges from 11/12 months or 33/36 months.
On RENEWAL, of Lease / Leave and License / Business Centre after 11/12 months or 33/36 months, 1 months rent and 1% of the deposit amount becomes due and payable BOTH by Lessor /Licensor
          
Business Centre owner and Lessee / Licensee and Occupier of Business Centre, to the broker/brokers concerned on the escalated deposit and rent etc.

(B) DEPOSIT

The Lessor / Licensor / Business Centre owner and the Lessee /Licensee /Business Occupier shall individually pay to the broker / brokers concerned, 2% of the total deposit amount or advance rent, whether the period of Lease / Leave and License / Business Centre is 11/12 month or 33/36 months. ON RENEWAL, or Lease/Leave and License/Business Centre, whether the renewal is for 11/12 months or 33/36 months, one percent of the deposit amount becomes due and payable BOTH, by the Lessor /Licensor /Business Centre owner and the Lessee/Licensee /Business Centre occupier, as brokerage, to the broker/brokers concerned.

Note :- In the event, the period in point III exceeds 33 or 36 months the brokerage shall be mutually agreed upon between the broker/brokers and party/parties.

(C) PAYING GUEST

Commission equivalent to two months compensation shall be payable by Paying Guest to the member and 1 month's rent from the Owner.

IV. OUT OF MUNICIPAL LIMITS

Commission @ 5% shall be due and payable to the members on the purchase/sale of properties beyond the Municipal Limits of a town/city by each of the Purchaser and Seller on the total consideration of the transaction, subject to a minimum commission of Rs. 10,000.

V. MANAGEMENT OF PROPERTIES

Commission @ 10% shall become due and payable to the member of the total amount collected as rent/compensation in respect of properties managed by the members For additional service rendered extra fees shall be due and payable to the member as may be mutually agreed upon.

VI. (A)  FRANCHISING

i)Commission at twice the minimum months income / guarantee or 2 months rent, whichever is higher is payable to the Estate Agent.

ii) In the event of anything mentioned in VI a) (i) is not applicable 2% of market value of property shall be payable as commission by both Franchiser / and Franchisee.

(B) TIME SHARING
In the case of Time Sharing minimum of 10% or higher amount as mutually agreed upon, shall be payable as commission, by the Seller/Developer/Time Share Marketing/Management Company/Resort etc.

NOTE
Commission/Brokerage/Agency Fee/Services Charges/Any Other charges, under any name whatsoever paid to the member for services rendered SHALL NOT BE REFUNDABLE UNDER ANY CIRCUMSTANCES.

SERVICE TAX
Section 116 of the Finance (No. 2) Act 1998 provides for levy of Services Tax on the Services rendered by Real Estate Agents & Real Estate Consultants. Vide notification No. 53/98-ST to 58/98-ST ,this has come into effect from the 16th October 1998. The rate of Service Tax on realty services is 12.24%(15th April 2006 )  Failure, to collect and remit Service Tax in nominated banks, will invite interest & penalty.

Note: - The above Schedule of Rates of Commission are the minimum standards rates to be charged.

                                                       THIS COPY IS PROVIDE BY: 
                                                       M/S: .
                                                       Director / Proprietor Name
                                                       Member of " EAAI"   reg No.
                                                       Add:

                                                       Tel/Fax: 91-022-
                                                       Mobile :  
                                                       E-Mail : swiad@yahoo.com

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