Buying & Investment
What is a Real Estate Agent? (And Who Pays Them)
The brokerage is negotiable. The more useful question is who is actually paying them — because that tells you whose interests they are serving.
The short answer
Brokerage in India is typically 1–2% from each side. It is negotiable, and almost nobody negotiates it.
But the important question is: WHO PAYS THEM?
Because on a new project, the BUILDER pays the agent — often 2–5% of the flat's value. Which means they are the builder's salesperson, not your advisor — however warmly they behave.
First — they must be RERA registered
Every real estate agent facilitating a sale in a registered project must be registered with the state RERA authority.
“What's your RERA agent registration number?”
A registered agent gives it without hesitation. An unregistered one changes the subject, says it's 'in process', or explains that they're not really an agent but a 'channel partner'.
Then verify it on the portal. Numbers get made up.
Why it matters: a registered agent has a licence to lose. An unregistered one has nothing to lose, and there is no register they can be struck off — because they were never on one.
Who actually pays them — and this is the whole thing
| Situation | Who pays | Whose side are they on? |
|---|---|---|
| New project, from a builder | The BUILDER — often 2–5% of the flat's value | The builder's. They are a salesperson. That is not a criticism; it is a fact, and you should hold it in mind. |
| Resale | Both sides, typically 1–2% each | The transaction's. They are paid when it completes — so their interest is that it happens, at almost any price. |
| You hire a buyer's agent | You | Yours. Rare in India, and worth considering on a large purchase. |
This is the single most useful thing on the page. On a new project, the friendly person showing you around is being paid by the person selling to you — often a great deal. They may be entirely honest. They are not, however, on your side.
An agent paid by the builder is not going to tell you:
• That the same builder has three delayed projects on the RERA portal
• That the loading factor is 42%
• That the yield in that locality is 2.1%
• That the metro line has been 'coming' since 2018
• That there is unused FSI and conveyance hasn't been done
• That a better flat, from a different builder, is available for less
Not because they are dishonest. Because they are not paid to.
Which means you must do that work yourself — and everything in this glossary exists so that you can.
Brokerage rates — and yes, negotiate
- Resale sale: typically 1–2% from each side.
- Rental: typically one month's rent, sometimes from each side.
- New project: the builder pays, often 2–5%. You usually pay nothing — which is why buyers assume the agent is free. They are not free. The cost is in your price.
Brokerage is entirely negotiable, and it is a large number that almost nobody argues about.
On a ₹1 crore flat, 1% is ₹1 lakh. For introducing you to a flat.
Ask for 0.5%. Ask for a cap. Ask what they will actually do for it.
And get the arrangement in writing before they show you anything — including exactly what triggers the fee. Disputes about brokerage, after a deal, are miserable and common.
What a genuinely good agent does
They exist, and they are worth their fee:
- Knows the micro-market properly — what actually sold, not what is listed
- Tells you when a price is too high — the single most valuable thing an agent can do, and the rarest
- Flags problems rather than hiding them
- Is RERA registered, and gives you the number without being asked
- Doesn't push. No 'last flat at this price'. No artificial deadlines.
- Knows the buildings — which ones have water problems, which societies are dysfunctional, which builders deliver
- Puts things in writing when you ask
How to protect yourself
- Ask for the RERA number. Verify it.
- Ask who pays them. Directly. An honest agent will tell you.
- Get every claim in writing. Ask them to confirm by email. Note who won't — that is the most informative thing that will happen all week.
- Verify everything independently. RERA portal. Master plan. Khata. Do not take a single thing on trust.
- Negotiate the brokerage, in writing, before they show you anything.
- Never let anyone hurry you. "Last flat at this price" is a technique. There is always another flat.
- Get your own lawyer. Not one the agent or the builder recommends. Your own.
Frequently asked questions
How much is brokerage in India?
Typically 1-2% from each side on a resale, and about one month's rent on a letting. On a new project the BUILDER pays the agent — often 2-5% of the flat's value — so buyers assume the agent is free. They are not free; the cost is in your price.
Is brokerage negotiable?
Entirely, and almost nobody negotiates it. On a Rs 1 crore flat, 1% is Rs 1 lakh for introducing you to a flat. Ask for 0.5%, ask for a cap, and ask what they will actually do for it. Get the arrangement in writing before they show you anything, including exactly what triggers the fee.
Whose side is a real estate agent on?
Follow the money. On a new project, the BUILDER pays them — often a great deal — which makes them a salesperson, not your advisor, however warmly they behave. They will not tell you that the builder has three delayed projects on the RERA portal, or that the loading factor is 42%. Not because they are dishonest — because they are not paid to.
Do real estate agents have to be RERA registered?
Yes, under Section 9. Ask for the number and verify it on the portal — numbers get made up. A registered agent has a licence to lose. An unregistered one has nothing to lose, and no register to be struck off, because they were never on one.
What makes a good real estate agent?
They tell you when a price is too high — which is the most valuable thing an agent can do, and the rarest. They know what actually SOLD rather than what is listed. They flag problems rather than hiding them. They are RERA registered and give you the number unasked. They put things in writing. And they do not push.