Brokerage Fees On Rent Agreement Renewal

Question

Brokerage Fees On Rent Agreement Renewal

27-Oct-2025 (In Civil Law)

Hello, I wanted to know what legal rights I have regarding brokerage Fees on rent agreement Renewal. Do I have to pay it? If I do not wish to pay it, and made a agreement from some other broker or related services will that be legally eligible or will I face some kind of action in future. The clause is mentioned in the leave and license agreement. But I wasn't aware and neither did the broker said anything about it at the time. So, what can I do?

Answers (4)

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Adv. Nikam Nitin Adv. Nikam Nitin

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Advocate Sanil Sarkar LawRato · Accepted Answer · 2025-10-27T17:36:45+05:30

Answer #2

If your broker did not disclose their MahaRERA registration number on the rent agreement or any official document, and did not inform you of the brokerage renewal clause transparently, you have strong grounds to dispute the enforceability of that clause. In such a situation, their claim to brokerage on renewal is not only unethical but legally invalid. In a rental transaction, a broker’s entitlement to brokerage arises solely from the terms mutually agreed upon at the time of engagement. If the clause regarding brokerage fees on renewal was inserted in your Leave and License Agreement without your informed consent, or if the broker failed to disclose this condition prior to execution, such a clause may be considered unfair or non-binding due to lack of transparency and informed assent.

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Advocate Mahrukh Khan LawRato · Accepted Answer · 2025-10-30T09:25:51+05:30

Answer #3

There's no specific law mandating brokerage on renewal - it's purely a private service charge, valid only if agreed upon. You can refuse payment if: The broker didn't perform any service, and There's no written or verbal commitment for renewal brokerage.

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Advocate Tanveer Ansari LawRato · Accepted Answer · 2025-11-10T23:15:12+05:30

Answer #4

Brokerage Fee on Rent Agreement Renewal 1. Brokerage is not mandatory by law – it depends only on what is written in the Leave and License Agreement. There is no legal rule requiring payment of brokerage on renewal. 2. If the clause exists, the broker can claim renewal fees only if: It was clearly explained at the time of signing, and The client knowingly agreed to it. 3. If the clause was hidden or not disclosed, the client can refuse to pay and even challenge it legally under Section 18 of the Indian Contract Act, 1872 (misrepresentation). 4. The client can renew the agreement through another broker or directly online on the Maharashtra e-registration portal — such an agreement will be completely legal and valid. 5. If the old broker threatens or demands money: The client can send a legal notice stating that the clause was not disclosed and renewal will be done independently. The broker would have to prove disclosure in court, which is generally difficult.

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Adv. Tanveer Ansari Adv. Tanveer Ansari

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