Real estate brokerage commission charges - in Madurai, Chennai, Trichy, Coimbatore, Tamil Nadu and in india

SCHEDULE OF RATES OF COMMISSION The Estate Agent 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. SALE / PURCHASE Where any immovable property is transferred or agreed to be transferred by way of purchase from builder or in Resale or whether by way of admitting as a member or by way of transfer of shares in Co-operative Society or Company or other Association of persons or by way of any agreement or arrangement or in any other manner whatsoever commission at the following rates on the total consideration amount (inclusive of Loan amount) and/or deferred payment, if any, shall be paid as under : a. 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. b. 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. c. Where there are more than two member involved in the deal, the Buyer and Seller shall pay 2% each, which will be shared amongst the member involved in the deal as per their mutually agreed terms. The above commission at the aforesaid rates shall, unless otherwise agreed to be paid as under: The commission shall be paid to the member at the time of execution of an Agreement or Deed of Transfer or Agreement for sale or on the completion of the transaction i.e in case of an Agreement for sale on the full purchase prices being paid or Possession of the said property, whichever is earlier LEASE OR LEAVE AND LICENSE a. Commission equivalent to two months compensation/rent/license fee, shall be due and payable by the License/Lessee to the member on premises secured on the leave and license basis for first period of eleven months Thereafter additional amount equivalent to one months compensation / rent shall become due and payable to the members from the Lessee / Licenses as commission for every additional renewal period of 11 months or part thereof as the case may be. b. Similarly Lessor/Licensor shall pay brokerage equivalent to one month rent / compensation / license fee. Thereafter additional amount equivalent to half months compensation / rent shall become due and payable to the member from the Lessor/Licensor for every additional period of 11 to 12 months or part thereof as the case may be. All the commission shall become payable to the member by the Purchaser/Seller/Licensee/Owner, as the case may be at the time of the execution of the agreement and / or at the time of handing over or taking over the possession of the accommodation / premises whichever is earlier. Commission/Brokerage/Agency Fee/Service Charges/Terminal charges under any name 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 Service Tax on the services rendered by Real Estate Agents and Real Estate Consultants, vide Notification No. 53/98-ST yo 58/98-ST dated 7th October 1998, this has come into effect from 16th October 1998. Currently the Rate of Service Tax on Realty Services is 10% and there is an education Cess of 2% on the Service Tax paid. The Client has to pay a Total of 10.2% as Service Tax on the Brokerage paid by them to the Realtors. This Rate is applicable as on 11th February 2006 and can be revised by the Government from time to time.