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Luis Canto Moniz (General Manager)     08 June 2013

Rental commision

Dear all

 

Can someone explain how the rental commissions work in India.

 

Who pays the commission Landlord or tenant?

I just rent a house and, now after everything done and contract signed the broker is asking for their commission, but nothing was agreed before or even spoken. Does it  works like that ?

I already rented 3 houses and its the first time its happening this .

 

Regards

Luis



Learning

 2 Replies

Hemang (Advocate)     08 June 2013

There is no law regulating the code of conduct in relation to "rent commission". When, an agent or a broker is asked to find out a property on rental, the broker would render the services and for which he would be expecting the "service charges, or what is popularly known as commission". The payment of commission, or a remuneration for services rendered would depend upon the terms and conditions. These are all matters, where no written contract is entered into. It is all executed in good faith. However, in your case, there appears no express term for making of payment by tenant. But the mercantile term, condtion, custom and usage is to pay the commission. And again, if you verify, the broker is such a community that it would charge the commission from both the side. So, if it is not a bigger amount, pay it , and hereafter, be careful to enter into clear terms to avoid bitterness.

Luis Canto Moniz (General Manager)     09 June 2013

Thanks for the reply! The amount is 1.5 lakhs and i feel that at least the guy could have advise before like some of them do and i could acept or not . Now i am not prepered to pay such amount of money . Thanks

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