• Lawyer Margin

I have found out that my lawyer's margin (20 lakhs) is way too high for my property for sale price (Price A). On top of that, prospective buyers are being referred through my lawyer's colleagues in court/police, who themselves are adding their own margin (equal to 20 lakhs) to the sale price thereby increasing the final sale price (Price B) to potential buyer.

How can I renegotiate the terms with my lawyer such that if the final price (Price B) is over an above the actual agreed price (Price A) I get an increase. Is there any widely accepted method/approach for seller?
Should not my lawyer's margin take care of paying his colleagues who refer potential buyers and I get the balance in Price B?

Please advise,
Thanks
Asked 6 years ago in Property Law
Religion: Christian

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12 Answers

See firstly the brokerage margin is too high , secondly you are not supoosed to pay for expenses of colleagues the lawyer or broker needs to pay for same.

I feel you are being cheated in this engage another qualified person the brokerage for sale is around 1-2 percent maximum of sale value not more then that.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

Hello, 

 

It is not allowed as per the bar council of india rules for the lawyer to work on margins. 

Moreover, selling and purchasing property is a work of property agent and not lawyers. 

Probably you have connected yourself to some wrong person. 

I would advise you to get in touch with some other person who works professionally for you. 

 

Regards 

 

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

 

First of all, it's not a lawyer job to get clients for selling the property. It's the work of a real estate agent who  just charge 0.5-1% of the selling price from the buyer and seller.

You do not need to pay such exorbitant amounts for selling it. Getting buyers is not that difficult. Contact some real estate agents who just charge of nominal percentage and make sure that you get a good price of your property since there Commission is directly proportional to the sale price.

 

 

Siddharth Jain
Advocate, New Delhi
6617 Answers
102 Consultations

You can negotiate the same with him.  Actually it's always decided in advance. 

Prashant Nayak
Advocate, Mumbai
34526 Answers
249 Consultations

Dear client 

The margins for property sell depends on the price of property it can be 1-2% of the sale price and depends on the dealer negotiations with you and buyer.

And also if the other dealer or lawyer is from buyer side then he will also get the margins of property sell and if he is agent of your lawyer then it's your lawyer duty to pay his commission from the margins he is getting from you. 

Mohit Kapoor
Advocate, Rohtak
10686 Answers
7 Consultations

Generally brokers charge between 1 to 2 per cent for finalisation of sale of property 

 

2) you are not required to pay Lawyer Rs 20 lakhs of sale price as his legal fees 

 

3) no need to agree to pay his colleagues another Rs 20 lakhs 

 

4) Lawyer should pay off his colleagues if necessary to finalise the deal 

Ajay Sethi
Advocate, Mumbai
99791 Answers
8147 Consultations

You should be concerned with your price which you expect from the property 

So if you are getting that price then you must not go behind what the broker lawyer is getting in the deal

Depending on the value of sale price generally certain percentage is paid to the middleman to complete the deal

For example if the price is above 1cr, then brokerage is between 0.25% to 0.5%

If the price is lower than 1 cr  then brokerage is between 1-2% of sale price

Yusuf Rampurawala
Advocate, Mumbai
7900 Answers
79 Consultations

There is no such thing called lawyer's margin in any law of the country.

This is a local arrangement between you and the lawyer involved in this transaction.

If you are not willing to give that big margin to your lawyer then you dont agree for the proposed sale of property.

There is no legal issue involved in it as apprehended by you.

As a matter of fact a lawyer should not involve himself in such businesses or else his practice may be suspended if he is involved in business activities.

You may change the lawyer or instruct your people in India suitably to not deal the property transaction through the said lawyer whose demands are exorbitant

 

 

T Kalaiselvan
Advocate, Vellore
89992 Answers
2495 Consultations

1.  The Standard Norm in India for "property brokers" is to charge 2% as brokerage /commission, on the actual sale value of the property (excluding Stamp Duty & Registration fees & other documentation fees).  The 2% brokerage is charged from Seller and the Purchaser, making his brokerage to 2+2 = 4% aggregate.

2.  In Canada, Australia, US, UK,  the brokers are paid a fixed amount /fees by the property owners (Seller) and the buyer does not pay any brokerage /fees.

3.  Further you can indicate the final price of the property, you want in your hand, irrespective of any other charges being charged by anybody.

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

This is too much better close the deal, many buyers will approach you directly or through agent, very less brokerage. hardly 1 to 2 %.

You can re negotiate at your level. Depends if he will agree or not. If not the close the matter.

Yogendra Singh Rajawat
Advocate, Jaipur
23082 Answers
31 Consultations

change your lawyer if you think so

Deepankar Kataria
Advocate, Delhi
194 Answers

  1. As per the information mentioned in the present query, makes it clear that it is the case of contract between both of you.
  2. It may be in writing or oral or implied, but surely both the parties are known to the terms and conditions of the same.
  3. Yes, you should try to negotiate in the issue and if bringing comes out then try to put any such clause in a way in which you will be benefited more than any one else.
  4. And also lastly but most importantly, if you wish then you can object to it before ge court of law on the ground of fraud as selling at higher than the market price ( this may be fruitful or may be not also).

Sanjay Baniwal
Advocate, South Delhi
5477 Answers
13 Consultations

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