Questions & Answers
Real estate brokerage fees and obligation to pay
Hello,
Recently, I am in contact with a real estate broker for a 2 BHK apartment. He showed me an apartment and he said there is an agency fee of 5% and a broker fee of 2500.
I did not agree with it. He did ask for my documents which I have given but then I thought of reaching the landlord. The apartment display the real estate management company number of this building.
I called them and they said they didn't appoint any broker nor did they retain. So, I booked the flat directly with the property management since they insisted to book through.
Now, the broker is claiming that he needs his fee, if not, he will follow a legal approach. It's a small amount but the whole process to secure this apartment is done by myself, why should I pay?
Is there any rule as show fee?
Dear Questioner,
First of all. Thanks for your inquiry. I have to be very honest in my reply so please excuse my honesty and take my advice subjectively.
You did contact a Real Estate Broker who showed you an apartment that you like, you did not want to pay his fee - which is reasonable and exactly as per the law and the market customary practice - then you decided to bypass him reaching out to the landlord directly.
The landlord - who previously gave access to the Real Estate Broker who allowed you to make the viewing - denied that they do business through brokers, which saves the landlord the brokerage fee that he might pay as well.
The broker job is to show you an apartment that you might like. He is eligible to get his fee if he reaches this conclusion.
Securing the apartment which is probably the administration work to execute the contract between you and the landlord is part of his job but a very small part.
The fact that you did not sign any agreement with the broker gives you a way out of paying him his fee. But, the ethical obligation will always remain. Think again about your decision.
I hope I made myself clear and excuse my honesty.
Best regards,
Ahmed Elnaggar
