Realtors seek cap on brokerage & Realtors meet to smarten profession

News Posted - 2010-07-02

CHENNAI: In a bid to save Chennaiites from the clutches of haggling real estate brokers, leading realtors in the city on Monday promised to infuse fair practices in deals, rationalise brokerage fees and ensure greater transparency in realty transactions.

The Chennai Real Estate Agent’s Association (CREAA), one of the member organisations of the National Association of Realtors (NAR), will organise the second national convention of NAR at Mamallapuram on July 16 and 17 to drive home these objectives. The convention would work towards adopting international practices and raising operational standards in realty deals, National Association of Realtors--India 2010 chairman C Suresh Reddy told media representatives.

The role of brokers had evolved over the years and now they were being seen as consultants guiding buyers all through a deal, noted Ramesh Nair, MD, Jones Lang LaSalle Meghraj, an international realty consultant.

Chennai has more than 4,000 unorganised brokers, said Jayanth Hemdev, co-chairman of the convention, adding that CREAA would strive to bring many of them into its fold.

Coming down heavily on mediators who charge abnormally high brokerage fees, Abdur Ravoof, president elect, NAR, said the organisation had fixed a cap of 2% on brokerage fees. "Our members are permitted to charge a maximum of only 2% each from sellers and buyers. Of course, there is scope for negotiation even within this 2% and many customers do bargain hard for lesser fees."

Noting that some mediators were charging 4-5% as brokerage fees, Ravoof said such practices were unethical. "In outlying areas of Chennai, our members used to collect higher brokerage fees in the past. Those were days when real estate prices were low and a realtor had to make several visits to the site with prospective buyers for clinching a deal. The situation has drastically changed now because property prices have shot up even beyond a 50-60 km radius of the city. We have instructed all our members to stick to the 2% brokerage fees in all types of realty transactions, whether it is within the city or outside," said Ravoof. Source: TOI 29/6/10

Realtors’ meet to smarten profession

Chennai: Gone are the days of the ordinary house brokers who used to take customers on his old moped around the properties. Gaining visibility from the umpteen transactions they made so far, the self-styled real estate consultants are now gearing to make themselves more professional.

As part of the ’smartening’ exercise, the second national annual convention of National Association of Realtors (India), an umbrella body of the real estate agents associations acorss the country is being held in Chennai, from July l6 to 17. The convention which would explore means to introduce international practices into the organisation which is gradually getting into structured format, would see eminent speakers from different assets class of the industry. Close to 500 delegates are expected to participate in the event.

“The role of real estate consultant has evolved considerably over the last few years and today more than ever before, clients are reaching out more for our advise, acting on our recommendations, involving us in more strategic issues a an early stage of and respecting us”, said Ramesh Nair, managing director, Chennai & Hyderabad, Jones Lang LaSalle Meghraj, a global real estate services provider. The objective of National Association of Realtors is to streamline and promote the real estate agents’s profession.

Propertybites 29/6/10