• Paying brokerage to a person who advertised the land

I recently purchased a land where I contacted a person who published the advertisement in the news paper , he turned out to be a broker . He Introduced me to seller and one more person saying that they work together . 

Now after the deal is completed , he is telling me that the other person is seller's broker and he has become my broker and asking for brokerage

Is this legally binding on me to pay him brokerage ?
Asked 13 days ago in Property Law
Religion: Hindu

2 answers received in 1 hour.

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10 Answers

No its not binding on you to pay the brokerage. If he has introduce you as a seller.

If he wants brokerage then he should have introduce as a agent to you why as a partner?

 

You can show him his advertisement published in newspaper and ask him to read the terms and conditions.

 

If your deal is finalized then don 't pay brokerage to him. He should have informed you before the deal so you could have negotiated price of the plot.

Ganesh Kadam
Advocate, Pune
12995 Answers
262 Consultations

Hi, you have not promised to pay the brokerage then question to payment of brokerage does not arise.

Pradeep Bharathipura
Advocate, Bangalore
5617 Answers
338 Consultations

No, you have no liability to pay broker of seller. Seller's broker is entitled to take brokerage if any from seller only.  

Siddharth Srivastava
Advocate, Delhi
1415 Answers

You have never sought brokerage services 

 

refuse to pay 

Ajay Sethi
Advocate, Mumbai
97223 Answers
7850 Consultations

As the deal is completed and property devolved upon you, you are under no obligation to pay any brokerage 

Netra Mohanchandra Pant
Advocate, Navi Mumbai
1581 Answers
5 Consultations

It depends on the agreement between you and the broker who finalized the deal.

You cannot invoke any law into such off the record dealings unless the person has involved in fraudulent acts.

You may deal with him on the basis of practical situation.

T Kalaiselvan
Advocate, Vellore
87425 Answers
2348 Consultations

- Since, there is no agreement for the brokerage  with that person , then you are not under obligation to pay him any amount . 

- Further, if he create a trouble in the deal , then you can file a complaint against him for the offence of cheating and breach of trust on the ground of advertisement publisher in the newspaper. 

Mohammed Shahzad
Advocate, Delhi
14641 Answers
224 Consultations

Legal Perspective on Brokerage:

  1. No Prior Agreement:

    • If you did not agree to hire this person as your broker or enter into a written or verbal agreement to pay brokerage, you are not legally obligated to pay brokerage to him.

  2. Role Clarification:

    • The person who advertised the property and facilitated the deal cannot assume to be your broker unless explicitly agreed upon.
    • If he acted solely as the seller’s broker, his payment arrangement is between him and the seller.

  3. Broker's Claim:

    • For a broker to claim payment, they must prove that there was an agreement or understanding to provide services on your behalf. Without this, their demand lacks legal standing.

Steps to Handle the Situation:

  1. Request Proof:

    • Ask the person to provide evidence of an agreement or verbal commitment where you agreed to hire them as your broker.

  2. No Payment Without Agreement:

    • Politely refuse to pay brokerage, citing the absence of any agreement or understanding.

  3. Legal Notice (if Demanded):

    • If they insist or threaten legal action, send a reply through a lawyer emphasizing:

      • Lack of agreement.
      • Their role as a facilitator for the seller, not as your broker.

Practical Advice:

  • Stay firm unless there’s clear evidence of a brokerage agreement.
  • If pressured, consult a local lawyer to draft a reply.
  • Future transactions: Always clarify brokerage terms in writing before proceeding with property deals.

For detailed, personalized advice, consider a phone consultancy. Hope you find the information helpful. If you could spare two minutes to write a review, it would be greatly appreciated. Thank you.

Shubham Goyal

Shubham Goyal
Advocate, Delhi
322 Answers

Dear Client,

You are not 
contractually committed to pay brokerage unless you and the broker agreedeither orally or in writingthat you were going to pay him a brokerage fee for his services. There was nothing in the situation above wherein you answered the advertisement which automatically created a legal obligation by which you would have been contractually bound to pay brokerage.

Hope that this helps you to solve your problem.

Anik Miu
Advocate, Bangalore
10285 Answers
121 Consultations

No you are not bound to pay unless it’s agreed in advance by you

Prashant Nayak
Advocate, Mumbai
32660 Answers
206 Consultations

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