Brokerage Fee: What You Really Pay When Buying or Renting Property

When you buy or rent a property in India, the brokerage fee, a payment made to a real estate agent for connecting buyer and seller or landlord and tenant. Also known as real estate commission, it’s often the hidden cost that catches people off guard. Many assume it’s paid by the seller only, but in rentals, tenants usually foot the bill—sometimes as much as one month’s rent. In sales, it’s typically 1% to 2% of the property value, but that number can swing higher in cities like Mumbai or Delhi where competition among agents is fierce.

Not all agents charge the same. Some ask for a flat fee, others take a percentage. A few even split the fee between buyer and seller, which sounds fair until you realize both parties are paying more than they should. The property transaction cost, the total expense involved in completing a real estate deal, including legal fees, registration, and brokerage. Brokerage is just one part, but it’s the part most people negotiate poorly—or don’t negotiate at all. You don’t have to accept the first number an agent gives you. In fact, many agents are open to lowering their fee if you’re buying multiple units or if the property has been on the market for a while.

Then there’s the rental side. In cities like Bangalore or Hyderabad, it’s common for tenants to pay one month’s rent as brokerage. But is that legal? Under India’s Real Estate (Regulation and Development) Act, or RERA, agents must disclose all fees upfront. Still, many don’t. And if they don’t, you’re not obligated to pay. Some landlords now include brokerage in the rent, so you’re not hit with a lump sum at move-in. That’s worth asking for. If you’re renting, always check if the landlord is willing to cover the agent’s cut—it’s not uncommon, especially in high-demand areas.

The real estate commission, the fee an agent earns for facilitating a property deal. isn’t just about who pays it—it’s about what you get in return. A good agent saves you time, avoids scams, and knows the neighborhood inside out. But a bad one? They push overpriced listings, hide repair issues, or disappear after the deal closes. That’s why it’s smart to ask for references, check reviews, and get everything in writing. A written agreement should list the exact fee, what services are included, and what happens if the deal falls through.

And don’t forget: some platforms now offer zero-brokerage listings. Companies like Orris Realty Hub connect you directly with owners or verified agents, cutting out the middleman. That’s how you get lower costs and more transparency. You still get help—just without the hidden markup.

Whether you’re buying your first home or renting your third apartment, understanding the brokerage fee means you’re no longer just a client—you’re an informed buyer or tenant. The posts below show real cases: how much people actually paid, where fees are negotiable, and which cities have the highest—and lowest—costs. You’ll see what works, what doesn’t, and how to walk away with a better deal.