There is no "normal" co-broking split in Indian law. No statute fixes one, so every split is something two brokers decide for themselves.
There is no legal standard split
The Real Estate (Regulation and Development) Act, 2016 does not set brokerage rates or say how brokers divide them; the only place it uses "commission" in that sense is the definition of a real estate agent in section 2(zm).[1] So the split is whatever the two brokers agree. It becomes enforceable the way any agreement does: under section 10 of the Indian Contract Act, 1872, an agreement is a contract if it is made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object.[2]
The practical rule follows: agree the split before you share the client, and write it down. A split argued about after the deal closes is a split nobody can prove.
Step 1: fix the pot before you divide it
A split is only as clear as the number it is a percentage of. Before you agree any ratio, settle these:
- Who pays brokerage. The seller, the buyer, or both. If both pay, decide whether the two fees go into one pot or each broker keeps their own client's fee.
- How much. A percentage of the final price, or a fixed amount. If it is a percentage, of which price: the agreement value or the registered value.
- When it is paid. At token, at the agreement to sell, at registration, or in parts.
- What happens if it is reduced. If the client negotiates the brokerage down at closing, is the cut shared in the same ratio? Decide now.
Do not split a fee that neither of you has confirmed with the client.
Step 2: choose a structure
Here are five ways to divide a co-broked fee. None of them is the "right" one; each fits a different deal.
| Structure | How it works | When it fits |
|---|---|---|
| Equal split | One pot, divided 50:50. | Both brokers do comparable work: one handles the seller, the other the buyer. |
| Each keeps their own client's fee | No money changes hands between brokers. Each bills their own client. | Both buyer and seller pay brokerage, and the two fees are similar. |
| Work-weighted split | An unequal ratio, for example 60:40, agreed for the extra work one side does. | One broker runs the site visits, the documentation or the loan follow-up. |
| Referral fee | A fixed amount, or a small share, for an introduction only. | One broker only passes on a lead and does no further work. |
| Conditional or tiered | The share changes with the final price, or with who closes the deal. | The price is still open, or more than one broker may end up working the client. |
Step 3: run the numbers, including tax
The figures below are invented for the example. They are not market rates.
Example. Broker A has the seller's mandate. Broker B brings the buyer. The seller pays A a brokerage of ₹1,20,000. A and B agree a 60:40 split, with A keeping the larger share for running the paperwork. A collects the fee and pays B's share.
| Broker A | Broker B | |
|---|---|---|
| Share of the ₹1,20,000 pot | ₹72,000 | ₹48,000 |
| If B is GST-registered, B's invoice to A: GST at 18% on ₹48,000 | — | ₹8,640 |
| B's invoice total | — | ₹56,640 |
On a 50:50 split of the same pot, each broker's share would be ₹60,000.
Three tax points sit behind that table:
- GST is charged on each broker's own fee. Real estate brokerage is taxed at 9% CGST plus 9% SGST, or 18% IGST.[3] If B is registered and invoices A, that invoice carries GST, and A, if registered, may be able to take credit for it, subject to the conditions in the GST law, which include holding a valid tax invoice.[4] More in GST on real estate brokerage.
- The paying broker may have to deduct TDS. Under section 393(1) of the Income-tax Act, 2025, commission or brokerage paid to a resident is in serial 1(ii) of the TDS table: a "specified person" deducts 2% once the payments cross ₹20,000. Serial 6(ii) covers individuals and HUFs who are not otherwise required to deduct, at 2% with a threshold of fifty lakh rupees.[5] Whether you are a "specified person" depends on the Act's definitions, so ask your CA before you pay B.
- Settle the base. Write down whether the split is calculated on the fee before GST. It should be, because each broker accounts for GST on their own invoice.
Step 4: write down the split and the triggers
A split agreement should say, at minimum:
- the property, and which broker introduced which client;
- the total brokerage and who pays it;
- the ratio or fixed amount, and that it is calculated before GST;
- when B's share falls due, for example within seven days of A receiving the fee, and how it is paid;
- what happens if the fee is reduced, refunded or never paid;
- how long the arrangement protects each broker if the client returns later and deals directly.
What to put in a written co-broking agreement turns this into a full clause checklist.
How the split works on Brokers99
On the Brokers99 broker network, the split is agreed before a client is shared: one broker proposes it, both agree, and it locks. A broker with a sole mandate can also put the property on the exclusive deals board with the co-broker commission they are offering.