Being associated with the real estate sector, I’m concerned about the significant challenges faced by real estate brokers and believe it is essential to shed light on these issues for the betterment of the industry.
One of the primary concerns is that landlords often refuse to pay the agreed-upon commission to real estate brokers. In some cases, the landlords demand a share of the commission paid by the tenant or buyer. In the case of renting out properties, the reputation of real estate brokers is damaged when landlords fail to fulfil promises of repairing and whitewashing. On the other hand, many tenants delay in paying commission which further exacerbates the financial strain on brokers.
These situations impact the financial well-being of the brokers. Bargaining on commission amounts by tenants or buyers post-deal completion is a prevalent practice that needs attention. Standardized commission rates, regulated by authorities, could ensure fair compensation for brokers.
To enhance the real estate industry in Karachi, there is a pressing need for government intervention. Establishing rules and regulations would contribute to a more organized and transparent business environment. Education and training standards for brokers can further elevate the quality of services provided to customers.
It is paramount to recognizing and regularizing the real estate business. Only individuals with the proper education and training should practice in the field. Essentially, fixing commission rates and penalizing overcharging would create a fair playing field. Additionally, bringing real estate agencies into the income tax circle would contribute to the government’s revenue and ensure accountability within the industry.
Maqsood Akhtar Siraj
Karachi