We recently renewed leave and license agreement with our landlord without including the broker.
agreement is in my husband's name.
the broker made him sign terms and conditions letterhead. the signature was taken in between a lot of commotion and we were not made aware that we have signed a document agreeing to pay brokerage again on renewal of the agreement.
details of the document are:
1) name of licensor
2) contact number
3) premises let out
4) name os licensee
5) contact no
6) email id
7) security deposit
9) agreement duration
10) date of agreement
11) date of expiry
12) broker name
13) note : After payingyour brokerage for the first 11 months If i continuefor another period of 11/22 months I agree to pay (agency's name) a sum of Rs.45000/- (one month rent) as brokerage for continuing period. In the case of extension/renewal of agreement I am liable to pay brokerage to (agency's name).
we were never given a copy of this document and even a bill of brokerage as the broker played on our fears of 14% tax in case we wanted a bill. We payed 45000/- in cash as he refused to accept a cheque or bank transfer. he also failed to mention the 14% tax addition before hand.
After we renewed our agreement, the broker called us and asked us to pay the brokerage again this month. When we said that we had come to an understanding with the owner and would not be requiring their service, he sent us a copy of this document via whatsapp.
we cannot afford to pay another brokerage. If we had the knowledge of this document, we would have moved out to another place or would have informed the agency of our intent to decline their services.
Can the agency take action against us even when they are not involved in the agreement process? Also the landlord had the agency remove any mention of brokerage and broker from the leave and license agreement.
Please help as to how we can save ourselves from this kind of extortion.
Asked 10 months ago in Property Law from Mumbai, Maharashtra
1) the terms of contract are sacrosanct
2) if you had signed agreement to pay brokerage at time of renewal of agreement you will have to pay brokerage to the broker of Rs 45000
3) broker can file suit to recover the amount of Rs 45000
1. Do note that the agreement obtained by way of fraud or mis representation of fact has no enforceability.
2. In your case the brokerage part was included by playing fraud upon you and hence the same is not binding on you.
3.So you can refuse to pay the brokerage to the broker.
4. If the threaten then lodge complaint with Police.
1. When the broker made you sign the terms and conditions, as you say, then you obtained his services, for which he will demand his pound of flesh. This is why every document should be read threadbare before signing it.
2. If the document that you have signed makes you liable to pay the brokerage then the agency can file a suit for recovery of money against you in the civil court. Show the document to a lawyer to get a clear opinion on this.
If the owner has agreed to continue the rent agreement you don't have to worry.
The agent cannot sue you for the money.
Yes they do trouble you by repeatedly asking for it.
You have to.ignore them,dont fall for their threats.
If they go ahead with a legal step then see what can be done.
There is no law binding them.to demand it.from you.if the rent agreement has a of brokerage and it is registered they can send you a legal notice.the same can be replied on the facts that the agency was paid it's service charges.now when you don't avail their service they can't force.
Basically a rent agreement in Mumbai is for 33months so agency commission doesn't make any sense legally.but unfortunately we practice many such things which are illegal .
So font worry, no need to pay heed to their demands.
If they are troubling again you can take action for intimidation and harassment of your family either through a police complaint or send a Lawyer notice
a. The broker can bribe some known cops and will try to take their help to encash this money from you : Need not to worry and tell the cops that you have not signed any such document and in case the cops force or try to harrass you tell them that this is a civil recovery case let the broker take necessary action.
b. The broker might not file a civil recovery as it will take ages and a lot of money to recover the meager sum of 45K hence please do not worry and do not respond to his call or phone, block him on wats app and block his number. If he calls from another number tell him softly that there has been no such agreement of payment of such brokerage. (dont mention you have not signed also do not mention that the leave and license do not have the brokerage clause mentioned - as this would be used if he files a case)
this person is unnecessary trying to extort you , in case he calls again , dial 100 and tell the cops that this person is harassing and asking for illegal money, even when you do not have any such commitment , if this person shows the signed letter head tell them you have not signed.
Best of luck.