Legal Question in Real Estate Law in India

yes, the agent can mention that the deal is being entered through him and he is entitled for a fee.

26.04.2012

Dear Sir / Madam,

An Agreement for Leave & License is a document which records all the terms and conditions of the lease between the licensor and the licensee. The agent signs as a witness.

Unlike in a one-time sale where both parties - the buyer and the seller pay brokerage; in an Agreement for Leave & License, an owner normally does not pay any brokerage, except paying a nominal token amount to the broker for costs he / she has incurred; for the simple reason that the owner is creating a regular recurring earning opportunity for the broker. The broker is required to collect his / her brokerage from the licensee only.

Being an issue between the broker and the licensee, there is no compulsion on the owner to mention the brokerage payable on the Agreement for Leave & License, and it is not recommended. The broker has to safeguard his / her interest by obtaining a separate signed document from the licensee, that he / she will pay the specified brokerage, if and when the lease is renewed.

You can mail me for further on-line legal advice at [email protected]

Regards,

Relationship is governed by what you agree.

For ethics, you may approach association or council of estate agents, if any.