In a move that could influence how brokerage transactions are structured in India’s real estate sector, Bengaluru-based developer SJR Primecorp has placed ₹2 crore in an escrow account to secure commission payouts for realtors associated with the Confederation of Real Estate Associates (India) (CREA (I)).The announcement was made on at an industry event held at Taj MG Road, Bengaluru, in the presence of senior leadership from CREA (I) and the National Association of Realtors India.
Under the arrangement, the escrow account will be jointly operated by SJR Primecorp and CREA (I). The funds are earmarked exclusively for brokerage payouts to CREA (I) members closing transactions on the developer’s projects. The amount will be replenished before depletion, ensuring continuity of payouts.
The development comes against the backdrop of a long-standing industry concern around delayed or uncertain broker commissions. By securing funds upfront, the model introduces a level of predictability and financial discipline that is not widely practiced in the sector.
Industry observers note that brokerage transactions in India have largely operated through informal arrangements, with limited safeguards. The use of escrow mechanisms—common in other financial transactions—could signal a shift toward more formal and auditable practices in real estate.
The initiative was formalised through an MoU signed between Samir Arora and Vijay Reddy, CMD of SJR Primecorp. The concept was initiated by Pradeep Joe, Chairman Emeritus, CREA (I).
More than 300 CREA (I) realtors were present at the event, along with senior NAR India leadership including Ravi Varma, Tarun Bhatia, Chandresh Vithalani, Ashish Mehta, Chetan Chopra, Ramkumar, Sivalingam, Rahul Koparwar and Ekta Jain.
“This initiative was conceived to address a long-standing gap in our industry. By securing commissions upfront, we are not just solving a payment issue — we are laying the foundation for a more disciplined, transparent, and future-ready real estate ecosystem,” said Mr. Pradeep Joe – Chairman Emeritus CREA (I).
Mr. Samir Arora, Chairman, CREA (I) and CEO, NAR India, said the move reflects evolving alignment between developers and organised realtor bodies. “When commissions are secured upfront under a jointly governed structure, it changes the nature of engagement. It moves from transactional to institutional.”
“This is a structural intervention, not a symbolic one,” said Mr. Sumanth Reddy, Chairman, NAR India. “For years, commission uncertainty has been a friction point. Locking funds in escrow brings accountability into the system and sets a benchmark others can evaluate.”
Mr. Chandresh Vithalani, President, NAR India, said the model could have wider implications if adopted more broadly. “The industry has been working toward greater transparency and professionalism. Mechanisms like escrow-backed commissions create a framework where trust is supported by process, not assumption.”
The Bengaluru market, which has seen increasing institutional participation in recent years, may provide a testing ground for such models. Whether this approach sees wider adoption across cities and developers remains to be seen.
For CREA (I), whose members are also part of NAR India, the development underscores growing institutional influence in shaping industry practices. For developers, it raises a strategic question: whether upfront financial commitments can improve channel partner confidence and sales velocity.
As the sector continues to evolve, the escrow-backed commission model may emerge as a reference point in discussions around standardising broker-developer relationships in India’s real estate market.
