Legality of additional rental brokerage demanded by broker

766 views 1 replies

Hi CA Club members,

Please help me clarifying/suggesting on the following issue/problem I am currently facing 

I had rented an apartment in Nov-2014 through a property agent and had paid one month rent brokerage to him at the time of occupying the flat. And a formal rental agreement for one year was signed between me and the owner. After 1.5 years ( in 2016) the agent called up and asked to pay again one month rental brokerage for the second year stay. At the time of renting the apartment, the broker did not tell me that he will charge me again one month rental brokerage for second and subsequent years if I continue to stay in the same flat. Now he is putting pressure to pay the additional brokerage which was not discussed or agreed upon at the time of renting the apartment.

Since the agreement for rent  has lapsed , my flat owner wants to sign new rent agreement which I am fine with it. But the broker is insisting that I pay one month rental brokerage to him for renewing the lease.

My question is the demand for rental brokerage by the broker for subsequent years renewal between tenant and owner is legally valid and that too he did not specify this demand at the time of renting the flat through him.

Please let me know how to go about dealing with this particular issue.

Thanks

Josh

 

 

Replies (1)
The general norm / practice is to pay the brokerage only once first time when the lease agreement is enrered into.. During renewal if the services of the broker is not availed theres no question of paying brokerage or anything..Try to make him understand..

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
29 June 2026
ACCOUNTANT

SANDEEP AASHISH & CO

Araria

B.Com

View Details
Company
25 June 2026
Accounts & Taxation Executive

Dindukurthy & Associates

Hyderabad

MBA

View Details
Company
29 June 2026
Accountant (Finance & Compliance)

TRIEYEZ

Kolkata

CA

View Details
Company
06 July 2026
Accountant

Agarwal Anoop and Associates

Noida

CA Final

View Details
Company
Featured 15 June 2026
Senior Auditor

N. Dhawan & Co

New Delhi

CA Inter

View Details
Company
Featured 24 June 2026
HEAD - AUDIT AND TAXATION

A R JADHAV AND ASSOCIATES

Mumbai

CA Inter

View Details
Company
24 June 2026
Senior Account (VA Client Operations)

Karbon Business

Bengaluru

CA Inter

View Details
Company
20 June 2026
Chartered Accountant

ANV & Company

New Delhi

CA

View Details