Can Homebuyers Claim Brokerage Refund After Cancelling a Flat Booking?

The ruling highlights a growing reality in India’s housing market — cancellation disputes are no longer limited to builders alone, but increasingly involve brokerage accountability and transaction transparency.

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has clarified an important issue impacting homebuyers and real estate agents across the state — whether brokerage paid during a flat purchase can be recovered after cancellation of the booking.

In a recent order, MahaRERA observed that refund claims related to brokerage cannot automatically be entertained under the Real Estate (Regulation and Development) Act, 2016 unless strong documentary evidence and clear project-specific liability of the real estate agent are established.

The matter arose after two Mumbai-based homebuyers approached MahaRERA seeking refund of brokerage allegedly paid while purchasing two apartments in the same project. Later, one of the units was cancelled due to financial difficulties.

According to the complaint, the buyers claimed that while refunding the consideration amount, the developer informed them that brokerage had already been paid to the broker towards the transaction. They further alleged that the broker had “misrepresented facts and fraudulently increased the commission component in the total consideration,” leading to a financial loss of ₹5,04,613 for the first flat and ₹2,13,039 for the second flat.

The complainants also stated that they were never informed that the individual involved was acting as a real estate agent or that commission charges were payable separately. They claimed they believed the broker was functioning as a sales executive associated with the developer.

Developer’s Defence

According to the developer, the homebuyers had already executed a registered cancellation deed and accepted the refund amount in 2024. The developer further argued that the complaint was filed after a delay of more than one year and that the complainants ceased to remain “allottees” after cancelling the booking.

The developer also maintained that the relief sought under RERA was not maintainable once the cancellation process had already been completed and accepted by the buyers.

What MahaRERA Observed

While hearing the matter, MahaRERA noted that although the complainants referred to invoices allegedly raised for brokerage amounts, they failed to submit supporting documentary proof before the authority.

“Hence, in the absence of any cogent documentary proof, the alleged claim regarding brokerage payments cannot be verified in this complaint seeking reliefs under the RERA,” MahaRERA stated in its order dated April 23, 2026.

The authority further clarified that even though the registration certificate of the concerned real estate agent had lapsed, that fact alone would not automatically entitle the complainants to a refund.

“It is also an admitted fact that the registration certificate of the said real estate agent has lapsed. However, mere lapse of such registration does not automatically make the relief sought by the homebuyers for refund maintainable,” the order observed.

MahaRERA additionally emphasized that the complainants were required to establish that the agent was officially registered for the specific project and that the alleged brokerage amount was collected in the capacity of an authorised agent of the promoter.

“For granting such relief, the complainants were required to show that the said agent was registered agent of the said project and that the alleged amounts were collected by the said agent in capacity of an authorised agent of the said project registered by the promoter. Hence, in the absence of such valid proofs, no liability can be fixed under the RERA against the said agent in the said project registered by the promoter,” the authority stated.

The complaint was ultimately dismissed on grounds of maintainability.

Why This Order Matters

The ruling is expected to become an important reference point for future disputes involving brokerage recovery after flat booking cancellations. Legal experts believe the order reinforces the importance of transparency, written disclosures, brokerage invoices, and proper documentation during property transactions.

The case also highlights how many buyers still enter property transactions without complete clarity regarding brokerage structures, agent roles, and commission liabilities. In several instances, buyers assume they are directly dealing with developers, only to later discover that intermediary commissions were embedded within the transaction value.

For the real estate sector, the order strengthens the broader objective of RERA bringing accountability, transparency, and documentation-based practices into property dealings.

Closing Insights

The MahaRERA ruling sends a strong message to both homebuyers and real estate intermediaries that financial claims in property transactions cannot rely on assumptions or verbal understandings alone. In an increasingly regulated real estate environment, documentation has become the foundation of legal protection.

The order also highlights a larger industry concern — many homebuyers still remain unaware of how brokerage structures, agent authorisations, and commission components are integrated into real estate deals. Lack of transparency at the booking stage often becomes the root cause of disputes later.

For buyers, the case reinforces the need to verify whether an agent is officially registered with the project, demand written disclosures, and preserve every payment trail before signing or cancelling any transaction. For brokers and developers, it serves as a reminder that clarity, disclosure, and compliance are no longer optional but essential for maintaining trust and avoiding regulatory scrutiny.

As Maharashtra’s real estate sector continues to mature under RERA oversight, such rulings are likely to shape more accountable and documentation-driven property transactions in the future.

By Sana Khan
Executive Editor, Realty Quarter
Mumbai