A Bengaluru buyer we heard from this month closed on a flat in Whitefield and, at the very end, was handed a brokerage bill for two percent of the price, plus a casual mention of tax on top, all of it a surprise. The number had never been written down, only mentioned in passing weeks earlier. On a one crore rupee flat that was two lakh rupees before tax, a figure large enough to deserve a conversation, not an afterthought. The lesson was simple: settle the brokerage in writing before you need the broker, not after.

The short answer. Brokerage in Bengaluru is negotiable and not fixed by law. In a resale deal it is common for the buyer and the seller each to pay their own broker somewhere around 1 to 2 percent of the price, often lower in premium pockets, and a registered broker will charge 18 percent GST on that fee. There is no statutory cap, so the amount is whatever you agree in advance. The trade off is clarity against convenience: pinning the percentage, who pays it, and when in writing takes a short conversation early, and skipping it invites a costly surprise at closing.

How much is brokerage in Bengaluru, and who pays it?

Brokerage is a market rate, not a regulated one. In practice, a resale transaction often sees the buyer and the seller each pay their own side's broker roughly 1 to 2 percent of the transaction value, and in premium micro markets the rate can be lower. Because nothing in law fixes the figure, the number is set purely by negotiation and local custom, which is exactly why you should agree it before the broker starts working for you rather than after a deal is on the table.

Be clear about who pays for what. In many deals each party pays their own broker, but arrangements vary, and a single broker representing both sides changes the picture. Ask directly whether you are paying one side's fee or a shared one, get the percentage and the base it applies to in writing, and make sure there is no assumption that you will also cover the seller's broker.

Is brokerage capped by RERA or any law?

No. RERA regulates real estate agents, but it does not set or cap the commission they may charge, which remains a matter of agreement between the agent and the client. That means a broker cannot point to a rule to justify a particular percentage, and equally you cannot demand a legally fixed lower one. The figure lives entirely in your negotiation, so treat any claim that a certain rate is standard or mandatory with healthy scepticism and negotiate on the merits.

What RERA does do is bring agents into a registration system, which matters for you in a different way. It gives you a way to check that the person taking your fee is a recognised, accountable professional rather than an unregistered operator.

Because the rate is negotiable, your leverage is real, so use it early. If a broker is bringing you a specific property that only they represent, a firm rate is harder to move, but if several brokers can show you similar options, you are well placed to agree a lower percentage or a fixed fee before you commit. What you should not do is leave the number vague in the hope it stays small. Vagueness favours the person sending the bill, not the person paying it.

Should my broker be registered with K-RERA?

Yes, an agent dealing in RERA regulated projects is expected to hold a Karnataka RERA registration, and you can verify that before you sign anything. Registration brings the agent within the regulator's accountability, and agents who facilitate deals without registering can face penalties under the Act. For you as a buyer, an agent's registration number is a basic credibility check, not a formality to wave away.

Verifying is quick, and we cover exactly how in our guide to checking a real estate agent on K-RERA. Ask for the registration number, confirm it on the regulator's portal, and be cautious with anyone who cannot or will not provide one, especially when they are steering you on a RERA registered project.

What about GST on brokerage?

A registered broker will add GST to the commission, currently at 18 percent, and that is a legitimate charge rather than an extra to resent. Brokerage is a service, and commission agents generally fall under compulsory GST registration, so a professional broker should issue you a proper tax invoice showing the fee and the GST separately. The table below shows how the fee builds up on a one crore rupee purchase at a few common rates, so you can see the real cash impact.

Insist on the invoice, because it protects you. A proper GST invoice ties the payment to a registered service provider and gives you a clean record, while an informal cash demand with a vague tax added on gives you neither proof nor recourse.

How do I avoid a brokerage dispute at closing?

Put the terms in writing before the broker does the work. A short written understanding that states the percentage, the value it applies to, whether GST is included or extra, who pays, and at what stage the fee becomes due will prevent almost every common dispute. The moment to agree this is when the broker starts showing you properties, not when you are days from registration and least able to walk away.

Tie the payment to the outcome, too. It is reasonable for brokerage to become due only when the deal actually completes, so avoid paying the full fee on a mere introduction or a verbal agreement to sell. If a broker pushes for a large payment before the sale is registered, treat that as a reason to slow down and get the terms clear first.

Watch for the dual role, as well. When one broker represents both you and the seller, their incentive is to close the deal rather than to win the keenest price for you, and that conflict is worth naming openly. It does not make the broker dishonest, but it does mean you should rely on your own checks on price and paperwork rather than assume a shared agent is looking after your side alone. Knowing whose interest a broker actually serves is as useful as knowing the fee.

How does brokerage fit into my total buying cost?

Brokerage is one line in a stack of closing costs that buyers routinely underestimate. Alongside the price, you are budgeting for stamp duty and registration, any pending dues on the property, and the token or earnest money that moves early in the process. Seen together, these turn a headline price into a materially larger cash requirement, and brokerage is the piece most often left vague until the end.

Plan for it the same way you plan for the others. Our guide to token advance and earnest money covers the money that moves at the start of a deal, and reading it alongside a clear brokerage understanding gives you a fuller picture of the cash you will actually need from first visit to final registration.

Your brokerage checklist for a Bengaluru deal

1. Agree the brokerage percentage before the broker starts working for you.
2. Confirm who pays, whether each side pays its own broker or you cover more.
3. Get the percentage and the value it applies to in writing.
4. Clarify whether the 18 percent GST is included in the quote or added on top.
5. Ask for the agent's K-RERA registration number and verify it.
6. Tie the fee to completion, not to a mere introduction or verbal agreement.
7. Insist on a proper GST invoice when you pay.

The bottom line for Bengaluru buyers

Brokerage is negotiable, uncapped, and entirely yours to pin down in advance, so the buyer who suffers a surprise at closing is almost always the one who never wrote the terms down. Agree the percentage and who pays it early, confirm your agent is registered with K-RERA, budget the 18 percent GST, and pay against a proper invoice when the deal completes. The Whitefield buyer paid in the end, but learned that the cheapest time to settle a broker's fee is before you owe it, when a clear conversation still costs nothing at all.

Frequently asked questions

Is there a legal limit on brokerage in Bengaluru?

No. RERA regulates real estate agents but does not cap the commission they can charge, so brokerage is set by negotiation and local custom. In resale deals the buyer and seller often each pay their own broker around 1 to 2 percent, sometimes lower in premium areas. Agree the figure in writing before the broker begins work.

Does a broker charge GST on commission?

Yes. A registered broker charges GST on the commission, currently 18 percent, and commission agents generally fall under compulsory GST registration. A professional broker should issue a proper tax invoice showing the fee and the GST separately, which gives you a clean record. Ask whether a quoted rate includes GST or adds it on top.

Should my agent be registered with K-RERA?

Yes, an agent dealing in RERA regulated projects is expected to hold a Karnataka RERA registration, and you can verify the number on the regulator's portal before you sign. Agents who facilitate deals without registering can face penalties under the Act, so treat a missing registration as a real credibility concern.

When should I pay the brokerage?

Tie the fee to the deal actually completing rather than to an introduction or a verbal agreement. It is reasonable for brokerage to fall due on registration of the sale, so be cautious if a broker demands a large payment earlier. Agreeing the timing in writing up front avoids a dispute when you are least able to walk away.

Last updated 2026-08-19. PropNewz Team.