How Real Estate Agents Work in India: What Buyers Should Know

Working With Property Agents

Real estate agents (brokers) remain central to Indian property transactions. Understanding how they work helps you get better deals and avoid common traps.

Commission Structure

Standard commission: 1-2% of transaction value from each side (buyer and seller) for purchase transactions. Rental: 1 month's rent from the tenant, sometimes from the landlord too. New project sales: builder pays 2-4% to the broker (technically "no commission from buyer," but the commission is built into the price).

RERA Registration

Under RERA, all real estate agents must be registered with the state RERA authority. Unregistered agents face penalties. Ask for the RERA registration number before engaging. Registered agents are accountable for misrepresentation.

How to Get the Best From Your Agent

Work with 2-3 agents simultaneously (exclusive mandates favor the agent, not you). Be clear about your budget and requirements upfront. Ask agents for recent comparable sale data to verify pricing. Negotiate commission, especially on high-value transactions (0.5-1% is achievable on properties above Rs 2 crore).

Red Flags

Agents who pressure you to decide quickly ("another buyer is interested"). Agents who do not share the seller's direct contact. Agents who ask for advance commission before the deal. Agents without RERA registration who deal in new projects. Start your search with verified listings on Infratyke to compare agent offerings.