Quick answer: In Hyderabad rentals, the market norm is one month’s rent as brokerage, most commonly paid by the tenant. In some deals – especially owner-initiated mandates or premium gated communities – the owner pays, or the fee is split 50:50. For resale purchases, brokerage is typically 1-2% of the sale value and is usually paid by each side to their respective broker.
There is no law fixing these percentages; they are conventions, so always confirm the fee and who pays it in writing before site visits begin. Through Broker Network’s Co Close system, two brokers can co-close a deal and share commission transparently, which avoids last-minute fee disputes.
Who typically pays in each type of deal?
| Deal type | Typical fee (convention) | Usually paid by |
|---|---|---|
| Residential rental | One month’s rent | Tenant; sometimes the owner, or split 50:50 |
| Rental under an owner’s exclusive mandate | Agreed with the owner | Owner |
| Resale flat, house or plot | 1–2% of the sale value | Each side pays its own broker |
| New launch through a channel partner | Paid by the builder under its own agreement | Builder (the buyer normally pays no brokerage) |
| Commercial lease | Negotiated case by case | As agreed in writing |
These are market conventions, not legal rates, and they vary by locality, ticket size and how hard the property is to place. Fees are often negotiable on high-value deals, or where an owner gives one broker an exclusive mandate. Whatever you agree, get the fee, the payer, the GST position and the payment trigger in one short written note. A WhatsApp confirmation from the broker is better than nothing.
When is brokerage due, and is GST extra?
For rentals, brokerage is usually paid when the agreement is signed or keys are handed over. For sales, it is usually paid at or around registration. A clear written fee note should say when it is payable, and whether anything is due if the deal falls through. Brokerage is a taxable service. A GST-registered broker will generally add GST (commonly 18%) to the invoice, so ask whether the quoted fee includes it. On a sale, brokerage comes on top of stamp duty and registration – see registration charges in Telangana.
Does my broker need to be registered?
For buying in RERA-registrable projects, yes. Under the RERA Act, real estate agents who facilitate those sales must register with TG-RERA, and TG-RERA has penalised unregistered agents in 2026. Ask for the agent’s registration number and check it on rera.telangana.gov.in, along with the project itself – see how to check RERA registration. For rentals and resale of older completed homes, look for a track record, written terms and verified listings.
How do I avoid fee disputes?
- Agree the fee, who pays it, and when, in writing before the first site visit.
- Work with one broker per property, so there is no argument over who introduced it.
- If two brokers are involved, confirm that they are co-broking and sharing one fee, not each charging you in full.
- Pay by bank transfer and get an invoice or receipt.
Broker Network’s documentation and legal guides cover the other costs of a Telangana transaction.
What should I expect from a broker for the fee?
A fee is easier to accept when you know what work it covers. For a rental or resale deal, a good broker should normally:
- Shortlist properties that genuinely match your budget, location and must-haves, instead of taking you on every visit available
- Confirm the owner’s identity and authority to rent or sell before a site visit
- Arrange visits and negotiate rent, deposit, price and terms on your behalf
- Collect title documents for a sale, or draft and stamp the agreement for a rental
- Coordinate with your lawyer, bank and the Sub-Registrar office on registration day
- Help with move-in handover, the inventory and transfer of utilities
If a broker only shares a phone number or a location pin, negotiate the fee to match the work done. Fair fees follow real work.
Frequently asked questions
Do I owe brokerage if I later deal directly with an owner the broker introduced?
If your written fee terms include a tail period, usually yes. Read the terms before you sign, and be fair to the broker who made the introduction.
Is brokerage refundable if the deal falls through?
That depends on your written terms. Most brokers charge only on successful closure, so confirm this upfront.
Can a broker charge both the owner and the tenant?
Some do, especially on rentals. It should be disclosed to both sides at the start.
Is brokerage paid on a property sale tax-deductible?
For capital gains, expenses incurred wholly for the transfer, such as brokerage, are generally deductible from the sale value. Keep the invoice and check with your CA.
Want clear fee terms from the start? Post your requirement and a verified Broker Network broker in Hyderabad will confirm the fee and who pays it, in writing, before any site visit. Or ask us on WhatsApp.
