Brokerage payable if property deal didn't go through
Querist :
Anonymous
(Querist) 03 June 2011
This query is : Resolved
Hi Experts,
I am currently in litigation with a prospective buyer of my property. I wanted to back out of the agreement due to personal reasons. The plain paper agreement on broker's letterhead did not mention any brokerage rate or that the brokerage is payable. Now the broker is threatening me with a legal notice, saying that I need to pay him the brokerage- that too, not only my share, but the share of the other party too since I backed out. Is brokerage payable if the deal ultimately did not materialize? Is there any law which governs the brokerage rates?
prabhakar singh
(Expert) 05 June 2011
1)ANY AGREEMENT ON ANY LETTER HEAD WITH RELATION TO ANY IMMOVABLE PROPERTY IS NOT LEGAL AND VOID AND NOT ENFORCEABLE AGAINST YOU.
2)IF BROKERAGE WAS NOT AGREED BY YOU AND ITS RATE IS NOT INCORPORATED ON THAT LETTER HEAD ,YOU CAN NOT BE HELD LIABLE TO PAY ANY THING.
3)UNFORTUNATELY THERE IS NO LAW OR REGULATING BODY TO GOVERN BROKERAGE RATES.
4) DO NOT PANIC,IF HE SERVES YOU A NOTICE REPLY HIM THAT YOU ARE NOT LIABLE TO PAY ANY THING.
Querist :
Anonymous
(Querist) 05 June 2011
Thanks for the assuring reply Sir
