Quick answer: Co-broking is when two brokers close one deal together – one represents the seller or owner (listing broker), the other brings the buyer or tenant. The commission is shared, most commonly 50:50, though listing-heavy deals sometimes agree 60:40.
Co-broking multiplies every broker’s effective inventory: you can close on properties you never listed. This is exactly what Broker Network’s Co Close exists for – brokers in the network share listings and split commissions on a pre-agreed basis, with the terms recorded upfront so there are no closing-day disputes.
How is the commission split usually decided?
No law fixes the split. It is a business agreement between the two brokers. The common patterns in Hyderabad are:
| Deal situation | Common arrangement | Why |
|---|---|---|
| Each broker collects from their own client (resale) | No split needed – each keeps their own side’s fee | The seller pays the listing broker and the buyer pays the buyer’s broker |
| Only one side pays (for example, the tenant pays one month’s rent) | 50:50 of the single fee | Both brokers did comparable work |
| Exclusive mandate, or a listing that took heavy marketing | 60:40 in favour of the listing broker | Recognises the cost of winning and marketing the mandate |
| Builder or new launch paying a channel-partner fee | Split as per the sub-agreement | The builder pays one partner, who shares with the other |
These are conventions, not rules. What matters is that both brokers agree the split, and who invoices whom, before the client is introduced.
What should a co-broking agreement record?
- Property details and the listing broker’s mandate (exclusive or open)
- Which client the co-broker is introducing, and the date of introduction
- Total fee expected from each paying party, and the split percentage
- Who raises the invoice, who collects, and how many days later the share is paid
- What happens if the deal closes after the agreement lapses (a “tail period”)
- GST treatment and each broker’s RERA agent registration number, where applicable
- How disputes are resolved
WhatsApp messages are better than nothing, but a one-page signed note avoids most closing-day arguments.
What rules apply to co-broking in Telangana?
Commission levels are not regulated, but brokers are. Under the RERA Act, a real estate agent who facilitates sales in RERA-registrable projects must register with TG-RERA, and must not facilitate sales in projects that should be registered but are not. TG-RERA fined an individual ₹1 lakh in 2026 for acting as an unregistered agent. Check any project you co-broke on TG-RERA first. On tax, brokerage is a taxable service under GST, generally at 18% once a broker is registered or crosses the threshold. Confirm your own position with a CA.
Is co-broking good for buyers, sellers and tenants?
Usually, yes. The client sees more properties, or more buyers, without paying two full fees, because the fee is shared rather than doubled. The listing broker gets more buyers, and the buyer’s broker gets more stock. The one thing clients should ask is who is representing them, and to get the fee in writing. On sales, clients should also budget for registration charges in Telangana, which are separate from brokerage.
How does co-broking differ for rentals, resale and new launches?
- Rentals: speed matters most. The usual pattern is that the owner’s broker shares the listing and the tenant’s broker brings a pre-qualified family or employee. The single fee is then split as agreed.
- Resale: deals take longer and involve more documents. The two brokers often split the work as well as the fee. The listing broker collects the seller’s title papers, and the buyer’s broker coordinates the buyer’s loan and lawyer.
- New launches: the builder’s channel-partner agreement decides who is paid. A sub-broker should agree their share with the empanelled partner before bringing a buyer. The project must also be RERA-registered before anyone markets it.
- Plots: both brokers should check the layout approval and title before sharing the listing. A bad plot damages both brokers’ reputations.
Frequently asked questions
Does the client pay more when two brokers are involved?
It should not. In a standard co-broke, the brokers split the fee each side would normally pay. Confirm the total with your broker in writing.
Two brokers showed me the same flat. Who gets paid?
Most brokers follow “first effective introduction”: whoever first showed you the property and has a record of it. Avoid the problem by working with one broker per property.
Can a broker charge both buyer and seller on the same deal?
It happens, but the broker should disclose it to both sides. If your broker is also collecting from the other side, ask whose interest they represent.
Can brokers outside Hyderabad co-broke with local brokers?
Yes. NRI buyers and out-of-city referrals often work this way. The same written-terms rule applies.
Broker looking for more inventory, or a client wanting wider choice? Post your requirement and verified Broker Network brokers across Hyderabad can co-close it on agreed terms. Or ask us on WhatsApp.
