IT happens quite often that more than one agent is involved in a transaction and the division of commission earned very often becomes a bone of contention. The Managing Committee after much deliberation has decided upon the following principles for the division of commission and it is hoped that Members will abide by the same.

TWO AGENTS IN A TRANSACTION
(1) If there are two agents involved in a transaction, each one shall collect from his/her own party the commission as agreed between the agent and his own party unless it is clearly agreed between the two agents at the outset that the total commission earned on the transaction shall be divided in equal or in specified shares between them.

MORE THAN TWO AGENTS IN A TRANSACTION
(2) (i) When three agents are involved i.e. one acts for the seller and one acts for the buyer and the third completes the transaction by way of negotiations, paperwork, etc. then the total commission earned shall be divided in three equal parts or as mutually agreed.
(ii) When one agent merely introduces the agent of the buyer to the agent of the seller to negotiate a transaction then he is entitled to only 20% of the total commission earned. If there are more than one agent who are in this middle position they will share this 20% or as mutually agreed beforehand.
(3) If an agent introduces a client to another agent and if the said client advertises his requirement before the actual negotiations commence, then the value of the introduction shall deem to be nullified. Also, if the said client subsequently responds to the advertisement of the agent introduced, no claim can be made by the agent who had introduced the client.
(4) The value of the information whether gathered from papers or other sources is placed at a fixed amount of Rs. 1,000/- in the city transactions and Rs. 100/- in suburban transactions after the completion of the deal and receipt of the commission.
(5) When a Member as a sole selling agent of a project is receiving 1% commission from the builder, he will be entitled to 1% commission out of 2% earned by the agent who may bring him a purchaser, the latter will however be entitled to 1/3rd of the total commission of the sole selling agent, when he is guaranteed 2% commission by the builder.
(6) In cases where an agent has handled a transaction but has failed completely for certain reasons he will be entitled to 1/3rd of the commission earned by the agent, who subsequently completes the transaction successfully in respect of the same premises or as mutually agreed.
(7) If two members discuss a proposal in the office of the third member and it leads to a successful transaction, then 20% of the commission earned must be paid to the member in whose office the business was mooted.
(8) If one member brings in a client for a specific proposal and subsequently another brings in the same client for another proposal, and a transaction materialises, then the first member will not be entitled to any share in the commission.
(9) The validity of any client or broker referred by one broker to another will be for six months.

Notes :
The above NINE rules are in the nature of guidelines for fair dealings amongst Members who are otherwise entitled to settle their own arrangement for sharing the commission before the commencement of negotiation of a transaction.
In all other cases not covered by the above 09 rules and in the event of any dispute amongst members regarding the sharing of commission the Managing Committee of the Association should be requested to adjudge the issues and their award should be accepted in good grace.