Dear Sir, I paid brokerage 1st year, is it mandatory to pay brokerage on every year renewal? They are demanding me to pay 1 month brokerage other wise vacate home. Many people are facing the same problem in Mumbai. Food, cloths & Home are the basic things. But no clear rules / many people not aware about how to stop paying to brokers on every renewal. Please guide people like us.
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1) it is not necessary to pay brokerage on renewal of agreement of leave and license
2) you should enter into agreement for 33 months instead of 11 months . Have agreement duly stamped and registeted
3) talk to licensor directly that you want longer term agreement . He would be happy to oblige
This is absurd. If you take a property on rent through a broker the brokerage is to be paid only once at the time of creation of tenancy. No legal obligation is incurred by the tenant or landlord to pay brokerage at the time of renewal of the rent agreement. Lodge a police complaint against the broker who demands brokerage on renewal.
Brokerage can be paid once when the broker introduces the tenant to the owner, however it is not mandatory that the brokerage has to be paid on renewal of agreement every year. Refuse to pay brokerage and also refuse to even vacate, let them do whatever they want, you may approach police with a criminal complaint for the offences of threatening,extortion, blackmail etc.
This is menace and have to be curbed. There is no rule for charging brokerage this way, you should resort to legal action by approaching police. They may be having influence with local police hence you may may approach higher police official in this regard who will fling into action immediately.
