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Brokers role in land sales transactions!
Posted on: 03/Sep/2015 4:27:55 PM
Are all problems solved at this stage? No, not at all! The land proposed to be bough changes hands through the brokers! In earlier days, brokers could be easily identified with their dress - they generally wore white shirts & whit Dhoti and held a bag in their underarms!
However, with passing time, this has changed completely! The persons dealing with buy in & selling lands entered the corporate world! With the aura of the corporate world, the dress code and the bag disappeared altogether! Truth to tell, even this has started changing in the recent trend!
While chatting with friends or relatives, the topic of investing in land comes up every now and then. Friends or relatives may inform about a land being available for sale, You might want to visit the place, see it and then decide. If you like the plot, you may decide to buy it. Now, let us see what all happens with/without your knowledge!
Even though he/she might be friend or relative, the person who informed about the land might be a broker in all probability! However, please note that there is a lot of difference when this information is given by a broker as compared to friends or relatives!
`This is land is the best possible location! Ideal to buy! It is belled with good luck! All faculties are available! There are absolutely no drinking water problems! The owner is a gem of a person being a perfect gentleman!` If all these statement come from your relative or friend, you would tend to believe it 100% & be delighted. However, if the same words are spoken by a broker, you would rather tend to suspect his statement - you would proceed to check it with other sources and then only decide.
Hence, please appreciate that there are many brokers under the guise of friends & relatives too! By this statement, we do not mean all are like that with glib sales talk. But, this is what usually happens! So, whether it is friends, relatives, or brokers who informed about the land, better proceed to check it thoroughly well before taking a decision!
Ok then! What about the commission of the brokers?
For example, if a owner of a 2400 sq ft land sells at a cost of Rs. 13 Lakhs, the broker who informed about it will have to be paid 2% of this cost of Rs. 13 Lakhs, which works out to be Rs. 26000/-! Note here that the seller is also likely to pay a similar 2% commission of the value of transaction to the broker! In case of transactions above Rs. 1 Crore, the commission is fixed at 1%.
Note - this is not a government rule or regulation - it is only as per the code of practice!
What are the roles/responsibilities of the broker in a land sale transaction?
- If there are any y problems arising in the measurement of the land, it is the responsibility of the broker to set this right! He/she should arrange for fresh measurements to be taken and keep the buyer & seller informed.
- Once the sale deed bonds are prepared and signed, the original sale deed will be released in the name of the buyer within 20 working days` time. Broker has to take the responsibility of procuring the same.
- The broker will be responsible for all activities till the entire transaction is 100% complete - these include land changing hands, value of the land, map of the land, the authenticity of the `patta` of the land).
- Broker`s responsibility includes arranging the sales registration, monitoring all the activities in the process of registration.
Note: These are not any government rules or regulations. They are simple the traditional codes of conduct followed in this profession.
