The Agreement Between Builder And Broker is a crucial document in the Indian real estate sector, particularly following the implementation of RERA in 2016. This agreement is essential when a real estate developer wishes to formally engage a broker or agency to market and sell their properties. It serves as a comprehensive framework that protects both parties' interests while ensuring regulatory compliance. The document becomes necessary when establishing professional relationships for property marketing, sales, and client representation, typically used for both residential and commercial projects. It includes detailed provisions for commission structures, marketing territories, service scope, and compliance requirements under Indian law. The agreement's importance has grown with increasing professionalization of real estate brokerage services and stricter regulatory oversight in India's real estate sector.
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1. Parties: Identifies the Builder and Broker with their complete legal names, registration details, RERA registration numbers, and addresses
2. Background: Outlines the context of the agreement, including the Builder's project details and the Broker's qualifications
3. Definitions: Defines key terms used throughout the agreement including 'Property', 'Commission', 'Successful Transaction', etc.
4. Appointment and Scope of Services: Details the appointment of the broker and specific services to be provided
5. Term and Territory: Specifies the duration of the agreement and the geographical area where the broker is authorized to operate
6. Commission Structure: Details the commission rates, calculation method, and payment terms
7. Rights and Obligations of the Builder: Lists the builder's responsibilities including providing accurate information and marketing materials
8. Rights and Obligations of the Broker: Outlines the broker's duties, including RERA compliance and professional conduct requirements
9. Marketing and Promotion: Specifies arrangements for marketing activities and associated costs
10. Compliance and Documentation: Details compliance requirements with RERA and other applicable laws
11. Confidentiality: Provisions for handling confidential information
12. Termination: Conditions and process for termination of the agreement
13. Dispute Resolution: Mechanism for resolving disputes between parties
14. Governing Law and Jurisdiction: Specifies applicable law and courts having jurisdiction
15. Miscellaneous: Standard provisions including notices, amendments, and severability
1. Sub-Brokers and Associates: Include when the broker is allowed to appoint sub-brokers or work with associates
2. International Marketing: Include for projects targeting international buyers with specific provisions
3. Digital Marketing Rights: Include when specific digital marketing arrangements need to be detailed
4. Performance Targets: Include when minimum performance requirements are set for the broker
5. Exclusivity: Include when the broker is granted exclusive rights for specific properties or areas
6. Training and Support: Include when the builder provides training or support services to the broker
7. Insurance Requirements: Include when specific insurance coverage is required from the broker
8. Force Majeure: Include when specific provisions for unforeseen circumstances are needed
1. Schedule A - Property Details: Detailed description of properties covered under the agreement
2. Schedule B - Commission Structure: Detailed breakdown of commission rates for different property types/values
3. Schedule C - Marketing Materials: List of marketing materials to be provided by the builder
4. Schedule D - Standard Operating Procedures: Detailed procedures for handling inquiries, showings, and transactions
5. Schedule E - Reporting Format: Templates for regular reporting requirements
6. Appendix 1 - RERA Certificates: Copies of RERA registration certificates of both parties
7. Appendix 2 - Authority Documents: Corporate documents establishing authority to execute the agreement
8. Appendix 3 - Project Approvals: Copies of relevant project approvals and permits
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