Apartment Related Compliances a Real Estate Salesman must know

Though almost every Real Estate Development company has a separate Compliance officer, to take care of various compliance, but Real Estate Salesman should also be aware of various Unit/Flat related compliance as he is the first point of contact between the company and the Customer. Since he is meeting the customer, therefore, generally the compliance officer will get the compliance completed through him and also have various documents delivered to client through him.

Hence, Real estate salesman's knowledge of compliance is very critical.

• Booking Amount: 

When he receives booking amount , client is given a code in company’s system and under that code he should ensure that Client’s file is started. A receipt should be issued to client for the Booking Amount received and that receipt contains information like Client’s Name, His Father & Mother’s Names, His Contact Address, His Permanent Address, Details of Nominee like Name, Relation and preferably Nominee’s Signatures also, Details of Payment Received: Cheque/DD No. (If Cheque/DD) or Cash, Date, Amount, Unit Number (Here he is temporarily allotted a Unit Number also).

• Booking Documents

Along with booking amount salesman must take following documents so as to complete the booking documents set:

1. Booking/Registration Form along with booking terms & conditions completely filled & signed by client.
2. Price List, with the price at which he is purchasing circled & signed by client. However, if client is buying at a price other than printed, in that case that price should be handwritten on Price List, circled & signed.
3. Payment Plan: A company may have different payment plans, so the one applicable to this deal should be attached along with & signed.

Once this is done, he is through with the booking process and move on to the next steps of the process. Here one thing very important to mention is that every payment he receives from customer should be by adding 3.50% Service Tax. And this has to be religiously deposited to government at the end of month.

• Allotment Installment

Now the 2nd installment is called the “Allotment Installment”. Here again a routine receipt for payment received in issued. But what is more important is that, at this stage Buyer-Builder Agreement is signed between client & developer. Two completely filled copies of the same should be given to client for signing. Under no condition, should it be first signed by a representative of company. Client signs both the copies, and attaches his KYC documents along with it and returns it back to company.

Then Authorized person of company signs both the sets, after which one copy goes to Client & other to his file.

P.S.: Each & Every paper entering client file should be signed by Client

• Due Payment Intimation

Whenever a customer’s payment becomes due as per the Payment Schedule he has chosen , compliance officer , may be with the assistance of his team, sends him an intimation.
After the intimation has been sent by compliance officer, salesman should follow with client as well concerned channel partner to get the payment within due time.

• Cancellation Of Booking

If the payment doesn’t come even after the passage of 90 Days (Again varies from company to company), then a cancellation letter should be sent to customer through Registered/Speed Post.
Salesman should also intimate this to client as well concerned channel partner.

• Transfer Cases

Many a times clients will like to transfer their property in someone else name. For that, salesman should have a properly worded & vetted by a Lawyer Transfer Set. This Transfer Set on a Stamp Paper of Rs. 100 should be filled & signed by both Transferor & Transferee. Both will attach their KYC documents along with & get it notarized. On submission of this, Transferor will have no rights over this property.

• Cancellation

During the process many persons will like to get the unit cancelled also due to some reason or the other. For this also salesman should have a properly worded & vetted by an advocate cancellation set. Any person willing to cancel a unit will fill it on a stamp paper of Rs. 100. Then after submission of the same, salesman should release him the payment as per company’s policy.

Cancellation will be complete once that person has refund amount in his account after which he will have no right over the said property.


This is a guest post by G S Bedi