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Terms of Commissions
or Brokerage Charges

SCHEDULE OF RATES OF COMMISSION (TO BE STRICTLY ENFORCED)
WITH EFFECT FROM 04th Jan 2016

Estate Agent's, Association has fixed the following uniform SCHEDULE of Rates of Commission for its member’s payable by their clients on different types of transactions handled by them.

I. 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 or in any other manner whatsoever including Transfer of Development Rights or FSI or Long Term Transfer of Development Rights, Commission at the following rates the total consideration amount (inclusive of loan amount) and/or deferred payment, if any, shall be paid as under:

  • 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.
  • 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 269U     Chapter XX-C of the Income Tax-Act 1961 and also under Transfer of Property Act, 1882.

The Above Commission at the aforesaid rates shall, unless otherwise agreed, to be paid as under.

  • 50% of the Commission, to be paid on receipt of allotment letter or on signing of agreement WHICHEVER IS EARLIER.
  • 50% of the Commission, to be paid receipt of full Payment or on possession WHICHEVER IS EARLIER

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

In case of Lease / Leave and License / Business Centre Agreement, Commission @ 2 month’s rent AND 2% of the deposit amount, becomes due & payable, BOTH by the Licensor / Business Centre owner AND by the Licensee / Occupier of the Business Centre, to the broker / brokers concerned. The above commission is payable whether 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 Agreement, Commission @ 2 month’s rent AND 2% of the deposit amount, becomes due & payable, BOTH by the / Licensor / Business Centre owner AND by the Licensee / Occupier of the Business of business centre to the broker / brokers concerned on the escalated deposit and rent etc.

Note:

1) Commissions / Brokerage / Agency Fees/ Service Charge / Any Other charges, under any name whatsoever paid to estate agent for service rendered SHALL NOT REFUNDED UNDER ANY CIRCUMSTANCES

Service Tax :

2. 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 / 980ST to 58 / 98 - ST dated 7th October 1998 this has come into effect from 16th October 1998. The rate of Services tax on reality services is 15% Failure, to collect and remit Service tax in nominated banks, will invite severe penalty in case gross receipt is more than Rs.10 Lac whole amount liable to service tax and there is no basic deduction.

3. T.D.S. as per section 194/1 is Commission / Brokerage received from other then individual and HUF and exceeds Rs.2,500/- then pays will deduct TDS @ 10% and will pay to Central Govt. before 7 of next months and issue Certificate in form No.16A within a month.

4. If gross receipt of Estate Agent exceeds Rs.40 Lac. then accounts is to be auditors under section 44 AB of IT Act.

GENERAL TERMS & CONDITIONS OF BUSINESS

PLEASE READ THIS DOCUMENT CAREFULLY! IT CONTAINS VERY IMPORTANT INFORMATION ABOUT YOUR RIGHTS AND OBLIGATIONS, AS WELL AS LIMITATIONS AND EXCLUSIONS THAT MAY APPLY TO YOU.

GENERAL

Lotus Estate Agency is provider of Indian property service to the Indians, NRI etc., with an aim to make Buying property on ownership basis and ownership management a hassle free &, transparent. Lotus Estate Agency is providing services on real estate business inter alia providing marketing services on behalf of the reputed & qualified developers and their existing and future projects including sales strategy, pricing, positioning and branding of the project undertaken in India for investment by buyers. Property sales services offered by Lotus Estate Agency are categorized under the following:

Advisorysales:

Advisory sales apply to the large amount of properties which are not exclusively marketed by Lotus Estate Agency, though Lotus Estate Agency may have a sales arrangement Agreement in place with the developer. In advisory sales Lotus Estate Agency usually takes remuneration from either the developer or the client based solely on Lotus Estate Agency. In case the client is charged for the sale transaction, a proper advice regarding the same will be given by Lotus Estate Agency to the client prior to the transaction.

Resales

Lotus Estate Agency arranges re-sale between clients and mediates the transaction until completion. In case of re-sales, Lotus Estate Agency will charge commission/service fee to the buyer as well as seller which will be communicated prior to proceeding with the transaction.

All orders booked by Lotus Estate Agency will be subject to these Terms & Conditions and customers/clients are deemed to have signified their acceptance of these terms and conditions by showing interest in the projects offered and proceeding with the transaction.

REPRESENTATION:

The customer has ascertained and is satisfied with the quality of the developer’s project, and Lotus Estate Agency shall be not liable in respect of any claim whether arising in contract or in tort or injury, loss or damage caused to any person or property or arising out of the representation made by the Lotus Estate Agency for such project by the developer. Unless otherwise explicitly agreed in writing, Lotus Estate Agency provides no representation, guarantee, condition or warranty, expressed or implied, with respect to

(i) the correctness or applicability of Developer’s designs, layouts, approvals, sanctions, specifications or instructions manual for any development Projects, or

(ii) The functionality or performance of the development Projects undertaken by such developer. The customer expressly agrees that he/she will not approach the developer directly or otherwise for a minimum period of 6 months of knowledge of such project via Lotus Estate Agency except & only through Lotus Estate Agency and who is entitled to commission on such sale as if such sale is effected by Lotus Estate Agency.

LIMITATION OF LIABILITY :

Lotus Estate Agency does not accept any liability beyond the remedies set forth herein, including but not limited to any liability for developers project not being available for use as scheduled, lost profits on investments, loss of business or the provision of services and support, except as expressly provided herein. Lotus Estate Agency will not be liable for any consequential, special, indirect, or punitive damages, even if advised of the possibility of such damages, or for any claim by any third party.

You agree that for any liability related to the purchase of developer’s project, Lotus Estate Agency is not liable or responsible for any amount of damages above the amount of commission for the applicable developer’s project which Lotus Estate Agency will receive for effecting such sale notwithstanding anything in this agreement to the contrary, the remedies set forth in this agreement shall apply even if such remedies fail their essential purpose.

INDEMNIFICATION:

To the fullest extent permissible by law, the customer hereby agrees to defend, indemnify and hold harmless Lotus Estate Agency its proprietor, officers, employees and other agents and representatives including its subsidiaries, affiliates, associates, holding, successors and assigns and against any and all liabilities, judgments, claims, settlements, losses, damages, penalties, obligations and expenses, including attorney's fees and expenses and other professional fees and expenses, incurred or suffered by such person arising from, by reason of, or in connection with any loss, damage or injury to person or property arising from, by reason of or in connection with the services provided hereunder. This indemnification shall survive delivery of the developer’s project/s to customer and any subsequent sale or other transfer of the Goods to a third party.

SEVERANCE:

If any provision of these Terms and Conditions is held invalid, illegal or unenforceable for any reason by any Court of competent jurisdiction such provision shall be severed and the remainder of the provisions hereof shall continue in full force and effect as if these Terms and Conditions had been agreed with the invalid, illegal or unenforceable provision eliminated.

GOVERNINGLAW:

These Terms and Conditions are subject to the Laws of India and it is agreed that all parties submit themselves to the exclusive jurisdiction of the Courts at Vadodara Only.

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