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Rajeev Minocha (GM)     08 January 2014

Commission to agent

 

Dear Sirs,

I have recently bought a property from a lady settled in the US. In the deal there was a broker involved known to the lady on a personal & professional level and he helped transact the entire matter.

In the early stages I asked the broker verbally as to how much commission would I have to pay to him and he did not address the issue. After a few weeks I wrote to him a mail asking the same question and yet again he did not reply or address this issue. The agreement to sell categorically stated that the seller would pay to the broker commission of 1.50% and the buyer would pay to his consultant commission as mutually decided. Here again since the issue was not specifically addressed with regards to my liability.

Based on the above I assumed that there is no commission to be paid by me. On signing of the sale deed the broker kept all files (past documents / correspondences / receipts) related to the property stating that he would segregate and hand over in proper manner.

After 2 weeks of the sale deed he called and asked for his commission and when I stated that there was no discussion on the same (in the 5 months that we had been interacting) he got wild and stated that this is understood and needs no specific clarification.

Now he refuses to part with the files till the commission is paid.

Query - is he right in claiming commission despite the fact that there was no agreement of the same. If not, what is my recourse to claim the files from him.

Regards



Learning

 3 Replies

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     08 January 2014

Court marriages are solemnized under the Special Marriage Act, 1954. Court marriage can be performed between an Indian male and a female irrespective of their caste, religion or creed. It can also be solemnized between an Indian and a foreigner. The procedure of the Court marriages does away with the rituals and ceremonies of the traditional marriages. The parties can directly apply to the Marriage Registrar for performance & registration of marriage and grant of marriage certificate. 
 

In order for a broker to be entitled to a commission, a sale must be completed for which the broker has been employed.

The broker's right to a commission is not dependent upon the finalization of the transaction unless otherwise agreed upon by the broker and by his or her client.

Kumar Doab (FIN)     08 January 2014

In many cities the local association of the Property Dealers (Brokers) finalizes the commission and displays it in the office.

It is felt that it is not more than 2%...............

In your case it is stated as finalized between the two parties...............” the buyer would pay to his consultant commission as mutually decided.

If the broker was from the side of seller then he handled the entire work for seller (his main party).

 

You may firm up a commission up to the range of 1.5%, obtain the receipt and docs in file , and close the matter. 

SACHIN AGARWAL (ADVOCATE)     08 January 2014

I agree by Mr. Kumar.


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