SJR Primecorp and CREA (I) Introduce Escrow-Backed Commissions to Standardize Brokerage Payouts
Bengaluru, April 22, 2026: In a significant move toward formalizing India’s real estate sector, Bengaluru-based developer SJR Primecorp has established a ₹2 crore escrow account dedicated to securing commission payouts for realtors. Announced Tuesday at an industry event at the Taj MG Road, the initiative was developed in collaboration with the Confederation of Real Estate Associates (India) (CREA (I)) and the National Association of Realtors (NAR) India to address long-standing concerns regarding payment delays and uncertainty for brokers, the company said in a press release.
The arrangement operates through a jointly governed escrow account managed by SJR Primecorp and CREA (I). These funds are strictly earmarked for brokerage payouts to CREA (I) members who successfully close transactions on the developer’s projects. To ensure the system remains robust, the developer has committed to replenishing the account before it is depleted, creating a continuous and predictable payment cycle that is currently rare in the domestic real estate market.
Industry leaders view this structural intervention as a vital step in moving the brokerage business away from informal, verbal agreements toward institutionalized practices. The formal signing of the Memorandum of Understanding (MoU) involved Vijay Reddy, CMD of SJR Primecorp, and Samir Arora, Chairman of CREA (I), following a concept originally initiated by Pradeep Joe, Chairman Emeritus of CREA (I). The event was attended by over 300 realtors and the senior leadership of NAR India, highlighting the widespread professional interest in the model.
“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 Pradeep Joe, Chairman Emeritus of CREA (I).
Samir Arora, who also serves as CEO of NAR India, added that the move signals an evolving alignment between developers and organized realtor bodies, stating, “When commissions are secured upfront under a jointly governed structure, it changes the nature of engagement. It moves from transactional to institutional.”
The leadership of NAR India expressed hope that this model would serve as a benchmark for the wider Indian market. Sumanth Reddy, Chairman of NAR India, described the move as a “structural intervention, not a symbolic one,” noting that locking funds in escrow brings much-needed accountability to a major friction point in the industry.
Similarly, Chandresh Vithalani, President of NAR India, suggested that the model could have broad implications for professionalizing the sector, stating, “Mechanisms like escrow-backed commissions create a framework where trust is supported by process, not assumption.”
As the Bengaluru market continues to see increased institutional participation, this pilot project will be closely watched by developers and channel partners across the country. By leveraging escrow mechanisms typically used in large-scale financial transactions, the partnership aims to boost sales velocity and partner confidence, potentially setting a new national standard for how broker-developer relationships are governed in India.
