> ## Documentation Index
> Fetch the complete documentation index at: https://brokeros.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# Broker KYC Verification & Compliance

> RERA broker certificate verification, tax compliance, bank payout validation, and anti-fraud checks.

Under real estate statutory regulations and corporate accounting guidelines, brokerages cannot legally disburse commission settlements to unverified or unlicensed agents. BrokerOS enforces a strict KYC verification gate before any commercial payouts can be scheduled.

***

## KYC Verification Workflow

Every onboarding broker must submit compliance documentation, which is reviewed by the legal and finance teams before commission eligibility is unlocked:

```mermaid theme={null}
sequenceDiagram
    autonumber
    actor SM as Sourcing Manager
    actor Broker as External Broker
    participant Web as BrokerOS Workspace
    participant API as Brokers API
    participant Compliance as Legal & Finance Team
    participant DB as PostgreSQL Database

    Broker->>SM: Submits License, Tax ID & Bank Documents
    SM->>Web: Uploads Documents to Broker Profile
    Web->>API: POST /api/brokers/:id/documents (multipart/form-data)
    API->>DB: Persist BrokerDocument Records (status: PENDING)
    Compliance->>Web: Audits License Validity & Tax Registration
    alt All Documents Valid & Active
        Compliance->>Web: Approve KYC
        Web->>API: PATCH /api/brokers/:id (status: VERIFIED)
        API->>DB: Update Broker.status to VERIFIED
        API-->>Broker: Notification: KYC Cleared & Settlement Eligible
    else Incomplete or Expired Documents
        Compliance->>Web: Reject with Reasons
        Web->>API: PATCH /api/brokers/:id (status: BLOCKED, reason logged)
        API-->>SM: Alert: KYC Correction Required
    end
```

***

## Mandatory KYC Document Checklist

BrokerOS requires four mandatory documents to transition a broker from `NEW` to `VERIFIED`:

### Real Estate License Certificate

* State real estate regulatory license number (for example, RERA agent certificate).
* The legal team verifies license validity against the official regulatory registry.
* Tracks expiration dates to ensure partners maintain active, compliant standing throughout transaction lifecycles.

### Tax Identification Document

* Permanent corporate or individual tax identification document (PAN, EIN, or national tax ID).
* Required for statutory tax deduction at source (TDS) and annual withholding tax certificates.

### Corporate Tax Registration

* State or federal sales/services tax registration certificate (for example, GSTIN).
* Validates the corporate entity name against tax records.
* Determines whether broker commission invoices include input tax credit considerations.

### Bank Account and Wire Details

* Scanned copy of a cancelled cheque, bank statement, or official wire instructions displaying:
  * Account Holder Legal Name (must match tax identification records).
  * Bank Account Number.
  * Bank Routing / Wire Identifier (IFSC code, routing transit number, or SWIFT code).
* Eliminates misdirected electronic disbursements and ensures fraud-free settlements.

***

## The Hard Payout Lock

BrokerOS enforces a strict database-level invariant:

> [!WARNING]
>
> **No commission payout (`BrokerageSettlement`) can be marked `PAID` or `COMPLETED` if the broker KYC status is not `VERIFIED`**. Finance users attempting to disburse funds to unverified or blocked brokers receive an immediate validation error.

This safeguard guarantees that corporate disbursements comply with financial audit requirements and protects the firm from regulatory penalties.


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