Kochi Real Estate Association Demands Unified Commission System

Kochi: Kerala Real Estate Consultants' Association (KERECA) has called upon state authorities to standardize the professional landscape of the real estate market by implementing a unified commission system. The demand was the central focus of a high-level district committee meeting held in Kochi recently.

Currently, the real estate consultancy sector in Kerala operates with significant and unpredictable variations in brokerage fees. This lack of consistency frequently leads to heated disputes between agents and clients, creates a breeding ground for unethical practices, and results in long-term financial instability for dedicated consultants, the association pointed out.

KERECA argued that a fixed, transparent commission structure is no longer a luxury but a necessity to protect the interests of both consultants and the public. 'By establishing a statewide standard, the association aims to eliminate unfair competition and bring professional dignity to the trade,' stated district president Mithun Lal Mitra. He noted that a regulated fee structure would ensure that the quality of service, rather than 'under-cutting,' becomes the primary competitive factor.

Beyond financial regulation, the association also raised the demand for labor recognition. Mitra emphasized that real estate consultants should be formally classified as workers under state labor laws. 'This classification is essential for providing legal protection against exploitation within what is currently a largely unregulated market,' Mitra added. The association plans to submit a formal memorandum to the state government to fast-track the reforms.

KERECA's initiative is not just about financial stability but also about enhancing the overall professionalism and ethical standards in the real estate sector. A unified commission system would help in building trust between agents and clients, ensuring that transactions are fair and transparent. This move could potentially attract more professionals to the industry, boosting its growth and stability.

The real estate market in Kerala has seen significant growth over the years, but the lack of a standardized commission system has been a major deterrent to its full potential. By addressing this issue, KERECA hopes to create a more equitable and prosperous environment for all stakeholders involved in the real estate sector.