Retainer fee for estate agent?

arunadasi

I have agreed to buy some land in India; an English woman living there working as a sort of estate agent helped me find the land and negotiate a deal. Her fee is 2%. Now she is also asking for a fairly hefty retainer fee as well. She has done a lot of work for me but is this normal? She says it is. But I've bought and sold property before, in the UK and in Germany, and never have been asked for a retainer fee.

googler

Have you got any kind of a contract with her? Verbal or written.

If so what's in it, or what was said?

arunadasi

Only verbal. I never agreed to a retainer fee. In the last few minutes before we parted company she suddenly pulled it out of the bag. Now, I'm quite willing to work on trust and even if the sale falls through, even though there is no writtem contract, I will pay her for her work. But she really just jumped this thing on me at the last minute: she wanted 20000 rupees, about £300, out of the blue. I was so shocked I kind of nodded and handed her 1000 rupees on the spot but the more I think about it, the more I feel it was not fair.
On the other hand I know she is struggling over there and there's not much work for her-- I think I'm her only client at the moment.

wodgerdodger

I have no knowledge of the "retainer fee" norms but am pretty sure that any experience you have in land purchase in the UK and germany will have little resemblance to the practices in India?
No doubt you have looked into the land ownership rights there but would be amazed if they resembe anything like he rights you acquire here.

Good Luck!

neverdespairgirl

arunadasi wrote: »

she wanted 20000 rupees, about £300, out of the blue. I was so shocked I kind of nodded and handed her 1000 rupees on the spot

Isn't 1000 R ITRO £15?

arunadasi

neverdespairgirl wrote: »

Isn't 1000 R ITRO £15?

Yes, about that. So according to her I still owe 19000.
India is so chaotic and unregulated I doubt there is any kind of regulation for estate agents there, or indeed estate agents at all! A lot of transactions are based on verbal agreements and trust and that is why no matter what happens -- even if I withdraw form the sale -- I'll still reimburse her for her efforts. It's just the way she jumped on me suddenly with this 20000, at th every last minute, that left me with a sour taste.

G_M

Unless you are familiar with India, property law, house-buying process etc, AND know this woman very well (ie an old friend or family member) I think you must be mad to trust her.

No contract or written arrangement?
Fees appearing on the spur of the moment?
Cash?

I look forward to seeing your post in a month's time outlining how you have handed over multiple small sums, which now total £X,000, and the 'nice english lady' has vanished.

In India.

Well, she'll be easy to find. And when you do find her, you're lucky that the Indian legal system works so efficiently and speedily allowing you to reclaim your money.

mcduff16

I was always under the impression that foreigners buying land/property in India is regualted and difficult?

I suggest you look it up via the embassy or internet before handing any money over

arunadasi

G_M,
I understand your concern, and thanks, but it's OK. I'm working through a lawyer now. I don't know her VERY well but she has lived in the area for several years, has 6 dogs, is well established there and isn't going anywhere.

McDuff: Why do you assume that I'm a foreigner????
But you're right, I am, and it is indeed not possible for foreigners to purchase land. There are two ways of going about it: get an Indian to buy it in his/her name, and then give it to you; or, form a Trust with two Indian members. I'm probably going the latter route, forming a Trust for the aged and disabled. Still looking into it; I'm getting a lot if queries from interested people.

G_M

Ah! She's got dogs! That's OK then. Sorry!

jockosjungle

To be honest the whole situation sounds dodgy, at best she might make off with £300 or this might be the first in a series of threads the last one being "Just been mauled by six dogs"

R