A real estate broker in Hosakote, Bengaluru, is the individual who holds the official RERA license and is legally responsible for the operations of a real estate brokerage. An agent, on the other hand, is a salesperson who works under the supervision of the broker. The broker is responsible for ensuring that all the agents in their firm adhere to the legal and ethical standards of the profession. They are also responsible for managing the company's finances, including the client trust accounts where deposits are held. For a consumer, knowing that their agent is backed by a reputable and responsible broker provides an additional layer of security and assurance. Praja Properties operates as a fully licensed and compliant brokerage.
The primary legal responsibility of a real estate broker in Hosakote, Bengaluru, is to ensure that all financial transactions are handled with the utmost integrity. This includes the proper handling of the 'earnest money' deposit that a buyer pays when their offer is accepted. The broker is legally required to deposit this money into a separate, non-interest-bearing client 'trust account', and this money cannot be co-mingled with the brokerage's own operating funds. These funds can only be disbursed at the time of the final closing, as per the terms of the sale agreement. This proper handling of client funds is a cornerstone of ethical and legal brokerage practice.
A key difference between a real estate broker and a real estate agent in Hosakote, Bengaluru, is their legal liability. The broker, as the owner of the licensed brokerage, is ultimately legally and financially responsible for the actions of all the agents working under them. If an agent makes a serious error or engages in malpractice, any legal claim or lawsuit from a client will typically be against the brokerage and the broker. This higher level of responsibility is why brokers are required to have more experience and a higher level of qualification, and it is why they take the supervision of their agents so seriously.