BENGALURU: The Bengaluru Realtors Association of India has expressed reservations about the draft rules for the Karnataka Real Estate (Regulation and Development) Rules 2016 saying it would make real estate agencies unviable
Commenting about the registration fees in particular, former president of Realtors Association and head of Silverline Realty Pvt Ltd, Farook Mahmood said it was unviable for an agency to pay the proposed Rs 5 lakh in the city and Rs 2.5 lakh in rural areas as registration fee.
“Agents work for a mere 2 per cent commission on the consideration value. The high cost of operations and the long gestation period in the real estate transactions diminish the real returns. In the light of this, it is unviable to expect the real estate agent to fork out Rs 5 lakh as registration fees,” he said.
The association also pointed out that registration fee in Gujarat and Uttar Pradesh was Rs 10,000 and asserted this was a more affordable and realistic price in the wake of relatively lower income level of real