Broker eligible for commission? - Indian Real Estate Forum

Leela13 · 06-08-12

Hi all,

I hope someone could help us out:

When is a broker eligible for the commission?

The following is the case: A broker took us to a house, showed us the apartment.
He said we will get a token and then we will have to pay the commission (and it will be cut down from the deposit later – our landlord has no idea how, because the commission had to go to him directly).
The landlord before told the broker guys they will not get any money from him, but if they still want to go ahead – no issues.

We saw the apartment, the broker called the landlord and the landlord asked us for our number. We met him and he said we will do the deal on our own, he doesn’t want the brokers to be involved.
We made the deal with the landlord himself and shifted in. Now that broker is threatening us that he wants the money.

Does he have the right?
When is he eligible for the commission?

Thank you in advance,

Leela

one2connect · 06-08-12

Etically if he introduced you to the landlord you should pay him brokerage.

**fritolay_ps** · 06-08-12

One of interesting story matching with this.... One of my friend was searching for bride....He took help of professional marriage bureau and finally met with bride's family and done all formalities "Roka" etc... .Now bride's family dont want to be involved with any marriage bureau(due to high professional cost)...... Should you pay to bureau ....????

rajeshdutta · 12-08-12

Hi,

Pls. help us understand the issue properly.

1. The broker took you to see an apartment.

Question: Did you approach the broker when you were looking for a rented flat?
If yes, did the broker tell you he will be charging brokerage from you or he was representing the land lord?
Broker might be representing the land lord and if you approached him, brokerage is payable by you. Usually, 1 month rent, but varies from city to city and case to case.

2. The broker asked you to deduct the brokerage from the deposit, is not done. It seems the broker was informed by the land lord that he will not be paying any brokerage. In this case Broker is not allowed to charge any brokerage from the landlord and you cannot deduct anything from the deposit amount. Some times brokers agree to these terms and charge brokerage from the person who is renting, which seems to me in this case.

3. Broker is eligible for commission when you finalize a property that the broker has shown and helps you initiate a connection with the owner of the property.

Hope this answers your query.

Quote:

Originally Posted by Leela13

Hi all,

I hope someone could help us out:

When is a broker eligible for the commission?

The following is the case: A broker took us to a house, showed us the apartment.
He said we will get a token and then we will have to pay the commission (and it will be cut down from the deposit later – our landlord has no idea how, because the commission had to go to him directly).
The landlord before told the broker guys they will not get any money from him, but if they still want to go ahead – no issues.

We saw the apartment, the broker called the landlord and the landlord asked us for our number. We met him and he said we will do the deal on our own, he doesn’t want the brokers to be involved.
We made the deal with the landlord himself and shifted in. Now that broker is threatening us that he wants the money.

Does he have the right?
When is he eligible for the commission?

Thank you in advance,

Leela

Ramesh Singh · 19-08-12

Dear all
This is an important thread and i hope more members will contribute.

I want to understand the following

What is a brokerage (expressed in percent of sale price) that buyer has to pay when a broker introduces a property/seller to the buyer in NCR? Is the buyer required to pay brokerage at all since he already shelling out his/her life time savings?

The second is a reverse, how much the seller has to pay borkerage (expressed in percent of sale price)? Or it is only the buyer who pays?

Do brokers charge from both?

Is brokerage to be explicitly discussed before hand?

Forgive my naivety, but do explain. ramesh

best regards

**fritolay_ps** · 20-08-12

What is a brokerage (expressed in percent of sale price) that buyer has to pay when a broker introduces a property/seller to the buyer in NCR? Is the buyer required to pay brokerage at all since he already shelling out his/her life time savings?

it is between 0.5% to 1.5% depends on size deal.. 0.5% is charged in small size deal. You are taking professional help so pay the fee...

The second is a reverse, how much the seller has to pay borkerage (expressed in percent of sale price)? Or it is only the buyer who pays?

same amount, % as above

Do brokers charge from both?
yes

Is brokerage to be explicitly discussed before hand?
normally % is fixed and it is common understanding between buyer/seller & broker..but check before the deal

Forgive my naivety, but do explain. ramesh

**MANOJa** · 20-08-12

Comments in red -

Quote:

Originally Posted by Ramesh Singh

Dear all
This is an important thread and i hope more members will contribute.

I want to understand the following

What is a brokerage (expressed in percent of sale price) that buyer has to pay when a broker introduces a property/seller to the buyer in NCR? Is the buyer required to pay brokerage at all since he already shelling out his/her life time savings?

You have to pay a fees for the services being offered . How much u pay, depends on your negotiating skills or the desperation of the Broker or how hot or thanda ( cold ) the property is . I have seen deals with Brokerage of 0.25 to 4.5 % ( but, as i said, no hard & fast rules here ) . 0.25% was for a land deal in Punjab ( approximate value was about 18-19 cr. - a big Farmhouse near Chandigarh ) & 4.5 % Brokerage was given by somebody known, who was desperate to sell & was not find a buyer ( Jallandher ). Normally, Brokers demand between 1.5 to 2 % & u can negotiate it to 0.5 to 1.0 % .

The second is a reverse, how much the seller has to pay borkerage (expressed in percent of sale price)? Or it is only the buyer who pays?

Do brokers charge from both?

Yes, they try to, but what u pay or don't pay, depends on your negotiating skills or lack of them .

Is brokerage to be explicitly discussed before hand?

Yes, it normally is . If it is not getting discussed, make it a point to discuss it & put that in writing .

Forgive my naivety, but do explain. ramesh

best regards

Ramesh Singh · 20-08-12

Quote:

Originally Posted by MANOJa

Comments in red -

many thanks and best regards, i take note of this for my dealings wit brokers, best ramesh

Ramesh Singh · 20-08-12

many thanks for this clarification, best ramesh

sharadmathur · 23-08-12

Logically it should be other way round, brokerage shall be more for small size deals and less for bigger one.

Quote:

Originally Posted by fritolay_ps

What is a brokerage (expressed in percent of sale price) that buyer has to pay when a broker introduces a property/seller to the buyer in NCR? Is the buyer required to pay brokerage at all since he already shelling out his/her life time savings?

it is between 0.5% to 1.5% depends on size deal.. 0.5% is

charged in small size deal. You are taking professional help so pay the fee...

The second is a reverse, how much the seller has to pay borkerage (expressed in percent of sale price)? Or it is only the buyer who pays?

same amount, % as above

Do brokers charge from both?
yes

Is brokerage to be explicitly discussed before hand?
normally % is fixed and it is common understanding between buyer/seller & broker..but check before the deal

Forgive my naivety, but do explain. ramesh

06-08-12	#1
Leela13 New Member Join Date: Aug 2012 Posts: 1 Likes Received: 0 Likes Given: 0	Broker eligible for commission? Hi all, I hope someone could help us out: When is a broker eligible for the commission? The following is the case: A broker took us to a house, showed us the apartment. He said we will get a token and then we will have to pay the commission (and it will be cut down from the deposit later – our landlord has no idea how, because the commission had to go to him directly). The landlord before told the broker guys they will not get any money from him, but if they still want to go ahead – no issues. We saw the apartment, the broker called the landlord and the landlord asked us for our number. We met him and he said we will do the deal on our own, he doesn’t want the brokers to be involved. We made the deal with the landlord himself and shifted in. Now that broker is threatening us that he wants the money. Does he have the right? When is he eligible for the commission? Thank you in advance, Leela

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06-08-12	#2
one2connect New Member Join Date: Jun 2012 Posts: 25 Likes Received: 7 Likes Given: 0	Etically if he introduced you to the landlord you should pay him brokerage.

06-08-12	#3
fritolay_ps Ex-Moderator Join Date: Mar 2010 Location: Singapore Posts: 12,468 Likes Received: 1480 Likes Given: 740 My Mood:	One of interesting story matching with this.... One of my friend was searching for bride....He took help of professional marriage bureau and finally met with bride's family and done all formalities "Roka" etc... .Now bride's family dont want to be involved with any marriage bureau(due to high professional cost)...... Should you pay to bureau ....????

19-08-12	#5
Ramesh Singh New Member Join Date: Jul 2012 Posts: 23 Likes Received: 1 Likes Given: 0	Dear all This is an important thread and i hope more members will contribute. I want to understand the following What is a brokerage (expressed in percent of sale price) that buyer has to pay when a broker introduces a property/seller to the buyer in NCR? Is the buyer required to pay brokerage at all since he already shelling out his/her life time savings? The second is a reverse, how much the seller has to pay borkerage (expressed in percent of sale price)? Or it is only the buyer who pays? Do brokers charge from both? Is brokerage to be explicitly discussed before hand? Forgive my naivety, but do explain. ramesh best regards

20-08-12	#6
fritolay_ps Ex-Moderator Join Date: Mar 2010 Location: Singapore Posts: 12,468 Likes Received: 1480 Likes Given: 740 My Mood:	What is a brokerage (expressed in percent of sale price) that buyer has to pay when a broker introduces a property/seller to the buyer in NCR? Is the buyer required to pay brokerage at all since he already shelling out his/her life time savings? it is between 0.5% to 1.5% depends on size deal.. 0.5% is charged in small size deal. You are taking professional help so pay the fee... The second is a reverse, how much the seller has to pay borkerage (expressed in percent of sale price)? Or it is only the buyer who pays? same amount, % as above Do brokers charge from both? yes Is brokerage to be explicitly discussed before hand? normally % is fixed and it is common understanding between buyer/seller & broker..but check before the deal Forgive my naivety, but do explain. ramesh