Co-Broking in India: Agreements, Splits and RERA

Co-broking is two brokers working one deal. One broker usually has the property (the seller's or landlord's mandate) and the other brings the buyer or tenant. The deal closes because the two of them cooperate, and the brokerage is shared on terms the two brokers agree between themselves.

A co-broked deal can run on nothing more than a phone call and a promise. This guide collects what the law actually says about the people in a co-broked deal, links each point to the official text, and then sets out the practical steps that keep a split from turning into a dispute.

Who counts as a "real estate agent" under RERA

The Real Estate (Regulation and Development) Act, 2016 defines a real estate agent widely. Section 2(zm) covers any person who negotiates or acts on behalf of one person in a transfer of a plot, apartment or building in a real estate project and receives remuneration "whether as a commission or otherwise". It also covers a person who introduces prospective buyers and sellers to each other, and it names "property dealers, brokers, middlemen by whatever name called".^[1]

Read plainly, both brokers in a co-broked deal fit that definition: one acts for the seller, the other introduces the buyer, and both are paid for it.

When RERA registration applies

Section 9(1) says no real estate agent shall facilitate the sale or purchase of a plot, apartment or building in a real estate project, or part of one, that is registered under section 3 and being sold by the promoter in any planning area, without first registering under section 9.^[1] Two consequences follow for co-broking:

• On a registered project, each broker who facilitates the sale is an agent facilitating it. Section 9 does not carve out the "second" broker. Our reading is that both brokers need their own registration; confirm it with your state authority.
• Quote your registration number. Section 9(5) says a registered agent's number "shall be quoted by the real estate agent in every sale facilitated by him".^[1]

Not every project has to be registered. Section 3(2)(a) exempts projects where the land to be developed does not exceed 500 square metres, or the apartments do not exceed eight across all phases, although the appropriate Government may lower that threshold.^[1] And the text of section 9(1) is tied to projects registered under section 3 and sold by the promoter. Whether your state also expects registration for other deals, such as the resale of an older flat, is a question for your state's RERA rules and authority.

What a registered agent must do

Section 10 sets out the functions of every registered agent:^[1]

• not facilitate the sale or purchase of any plot, apartment or building in a project that is not registered with the Authority;
• maintain and preserve the books of account, records and documents that the rules prescribe;
• not involve themselves in unfair trade practices, which the section describes as false or misleading statements about services, claiming approvals or affiliations that do not exist, and advertising services that are not intended to be offered;
• help the allottee get the information and documents they are entitled to at the time of booking.

The penalty for an agent who fails to comply with section 9 or 10 is in section 62: ten thousand rupees for every day the default continues, which may cumulatively extend up to five per cent of the cost of the plot, apartment or building for which the sale or purchase was facilitated.^[1]

Section 34(d) also requires each state Authority to keep a public database on its website of real estate agents who have applied and registered, including those whose registration was rejected or revoked.^[1] That database is the first place to check a broker you have not worked with before (see how to find and check a co-broker).

What the law does not say: the split

The RERA Act does not set a brokerage rate or say how two brokers should divide one. The only place it uses the word "commission" in that sense is the definition of a real estate agent.^[1] There is no central rule that fixes a "standard" co-broking split. The split is a commercial term between two brokers, and like any agreement it becomes a contract when it meets the conditions in section 10 of the Indian Contract Act, 1872: free consent of parties competent to contract, a lawful consideration and a lawful object.^[2]

That is why the most useful thing two brokers can do is agree the split before the client is shared, and write it down. How to split commission between two brokers works through the options with worked numbers.

Put it in writing

An oral agreement can still be a contract, but if the other broker later says the split was different, a phone call is very hard to prove. A short written agreement settles the questions that cause most disputes: who brought which client, what the total brokerage is, who pays whom, when the share falls due, and what happens if the client comes back directly six months later. What to put in a written co-broking agreement has a clause-by-clause checklist.

The agreement between the two brokers is separate from the agreement between the buyer and the seller. For that one, the Buyer-Seller Agreement Builder on this site prepares a draft you can print or save as a PDF.

Tax points that change the numbers

• GST on brokerage. Real estate brokerage falls under Heading 9972 of the services classification and is taxed at 9% CGST plus 9% SGST, or 18% IGST.^[3] When one broker pays the other's share, who invoices whom matters. See GST on real estate brokerage.
• TDS on commission. Commission or brokerage paid to a resident is listed in the TDS table of section 393(1) of the Income-tax Act, 2025, so the broker who pays the other broker's share may have to deduct tax at source.^[4] The split article covers this.
• TDS on the property itself. A buyer must deduct 1% when the price or the stamp duty value of a property (other than agricultural land) is ₹50 lakh or more.^[4] It is the buyer's duty, but a broker who knows the rule can raise it before the payment schedule is fixed. See TDS on property purchases of ₹50 lakh or more.

A working checklist for every co-broked deal

1. Check the other broker's RERA registration on your state Authority's website if the property is in a registered project.
2. Confirm who holds which mandate, and get your own client's consent before you bring in another broker.
3. Agree the total brokerage, the split, who pays whom and when, in writing, before you share the client's name or number.
4. Agree who raises which invoice, and how GST and TDS are handled.
5. If the property's price or stamp duty value is ₹50 lakh or more, tell the buyer about TDS before the payment schedule is fixed.
6. Keep the records section 10 of RERA asks for, and quote your registration number in every sale you facilitate.

Where to find a co-broker

Start with brokers you have already closed a deal with, then brokers who actually work the locality the property is in. On this site, Find Brokers lets you search by city. Whoever you find, check them before you share a client: how to find and check a co-broker sets out what to check and what to ask.