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archana shankar   13 August 2025

Real estate commission - no written agreement

Dear all,

 

I am a real estate broker and had shown my client a villa through another broker. My role was very limited as I just introduced my clients to other broker and I shared her number to my clients to be in touch with her directly for any information as I was very busy. I know my clients for last 10 years and they are like friends to me.

The other broker was genuine and kept me informed at every stage and she managed to introduce the seller although I was not present but kept me informed at every stage. She has couple of messages of my clients interacting wither to introduce the seller, google meet links, screen shots of meetings on google meet ect. Yes, agreed she had managed everything on my behalf and I was purely absent. Post introduction my client has asked the other agent for sellers contact details to negotiate directly to see if the deal goes through.

Post sharing the number my clients have done a direct deal with a seller and have got the property registered directly with seller without informing neither me nor the other agent.

Other agent now is very upset as my clients deviated from the process and she lost her commission which was duly payable by the seller. She did request me to have this matter settled and my clients were refusing to make any payments for her, she escalated the matter to BNI where me and my clients are official members and it was a huge escalation and my client immediately settled the 1% commission to me.

Other agent has not received her commission from her client as he is not in the same city and is not contacted now. She has sent a legal notice now claiming that purchaser were her clients and that she was supposed to be getting paid the commission and that wrongfully they have paid me who placed no role in the sale, she has produced all what’s up message and screenshots as proof. She doesn’t have a written agreement either with my client or agent agreement among us.

Wanted expert advice as to firstly does she even have a case.

Although I know she has been betrayed, I am helpless and would want to stand for myself. Legally what can she get, we have not replied for the notice received from commercial courts and now we have received a mediation notice which we haven’t replied as well. Will she be governed under law in ay way. How can we protect our rights.

Thanks in advance.

 



 12 Replies

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     13 August 2025

Even without a written agreement, the other broker may still have a claim under contract law principles, particularly:

Implied Contract: Courts sometimes recognize implied contracts based on conduct, communication, and mutual understanding.

Her WhatsApp messages, Google Meet links, and coordination efforts could be used to argue that there was an implied agreement.

Quantum Meruit: This legal doctrine allows a person to recover reasonable payment for services rendered when no formal contract exists.

If she can prove she facilitated the deal and was cut out unfairly, she may be entitled to compensation.

However, her case is weakened by: Lack of a written agreement with either you or the buyer. The buyer directly negotiated and registered the property with the seller, bypassing both brokers.

 Legal Risks for You You’re in a delicate position: You were not directly involved in the sale. You received a 1% commission from the buyer, which the other broker claims was rightfully hers.

If the matter escalates in court, you may be asked to justify why you accepted the commission despite limited involvement. However, since the buyer paid you voluntarily and you had a long-standing relationship, that may work in your favor.

 How to Protect Your Rights Here’s what you should consider doing: Respond to the Legal Notice: Silence can be interpreted as negligence. Engage a lawyer and respond formally to both the legal and mediation notices.

Document Everything: Preserve all communications showing your limited role and the buyer’s decision to pay you directly. Mediation Strategy: In mediation, emphasize: Your limited involvement. The buyer’s direct dealings with the seller. The absence of a formal agreement between the other broker and the buyer. 

 Practical Advice Going Forward Always use written agreements—even simple MoUs or emails—to clarify roles and commissions. Avoid accepting payments in ambiguous situations without clear documentation. Consider proposing a partial settlement to the other broker if you want to preserve professional relationships and avoid litigation.

Dr. J C Vashista (Advocate )     14 August 2025

Being a commercial story it is better to seek professional services of a local prudent lawyer for proper analyses of facts/documents and necessary advise/ proceeding.

R.K Nanda (Advocate)     14 August 2025

Take help of local lawyer for proper legal guidance. 

archana shankar   14 August 2025

Thankyou sir , 

for your time and valuable reply. 

 

Thanks

T. Kalaiselvan, Advocate (Advocate)     15 August 2025

A real estate broker can potentially be entitled to a commission even without a written agreement, under an implied contract. This typically occurs when the actions of the broker and the seller (or buyer) indicate a mutual understanding that the broker is providing services for a commission, even if not explicitly stated in writing. An implied contract is a legally binding agreement created by the conduct of the parties involved, rather than by explicit written or verbal agreement. 

For a court to find an implied contract for a commission, the broker typically needs to demonstrate:

  • They provided services related to the sale or purchase of the property.
  • The seller (or buyer) knew the broker expected a commission for their services.
  • The seller (or buyer) accepted the broker's services and benefited from them. 

It can be more difficult to prove an implied contract than a written one. The broker needs to show clear evidence of the other party's understanding and acceptance of their role in earning a commission. 

archana shankar   15 August 2025

Thankyou sir.

Yes she has enough proof to prove that. Whats up messages and screen shots of introduction meeting. 

 

T. Kalaiselvan, Advocate (Advocate)     16 August 2025

The broker can take action on the basis of substantial and legally maintainable evidences against the buyer by first issuing a legal demand notice and pursue the same through court of law including a criminal complaint with the local police for the acts of cheating and breach of trust.

Dr. J C Vashista (Advocate )     16 August 2025

Repeated story at https://www.lawyersclubindia.com/experts/criminal-breach-of-trust--763901.asp

archana shankar   16 August 2025

Thank-you sir

For your prompt reply. 

Kevin Huis   16 August 2025

It seems like a tricky situation since without a written agreement it becomes hard to claim commission. However, if you can show proof of your involvement or communication, you may still have a case. Better to consult a legal expert for proper guidance. By the way, I also came across Fc mobile mod apk mod menu being discussed in other forums.

Vishesh K Sapra (Advocate Supreme Court (888-215-3399))     19 August 2025

In real estate transactions, the enforceability of commission claims depends primarily on evidence of engagement and services rendered. While a written agreement between broker and client is ideal, Indian courts have, in many cases, recognized oral agreements or even implied arrangements supported by documentary proof such as WhatsApp messages, emails, meeting links, and other records. In your situation, the other broker can argue that she effectively acted as the procuring cause of the transaction — she introduced the seller, facilitated communications, and produced evidence showing her involvement. This can strengthen her claim to commission despite the absence of a formal written contract.

However, the purchaser directly negotiated with the seller, and the seller is ordinarily liable for broker’s commission unless expressly agreed otherwise. Since your client has already paid you 1% commission, the other broker will face the challenge of proving (i) that she was engaged by the purchaser and not just by you, and (ii) that her commission was contractually due from the purchaser or seller. The absence of a written agency agreement weakens her case, but not fatally if circumstantial evidence is strong.

Given that a legal notice and mediation notice have been served, non-response could prejudice your position. You may contest her claim on the grounds that there was no direct contractual obligation between her and your client, and that her remedy, if any, lies against the seller. You can also highlight that you acted only as an introducer and that payment to you was a goodwill settlement, not an acknowledgment of liability on behalf of your client.

Ultimately, while she may have equitable grounds to feel aggrieved, her ability to enforce commission in court without a written contract will be limited to the extent she can prove privity and reliance. At best, the court or mediator may attempt a compromise, but unless she shows clear contractual terms fixing liability on the purchaser, her legal standing is weak.

To know further connect with me at adv.vishesh@icloud.com

archana shankar   20 August 2025

Thankyou Vishesh. Ill connect with you soon on this. 


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