Real Estate Broker Commission Rates & Rules in Sri Lanka

"One shot, three lakhs."

Brokering is unregulated in Sri Lanka. Anyone can be a broker. This leads to disputes. Here are the unwritten rules of the game.

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1. The Standard Rate: 3%

• Seller Pays: Usually, the Seller pays 3% of the total sale price to the agent.
• Buyer Pays: Usually 0%. The buyer rarely pays commission unless hired as a "Buyer's Agent."

Example: Sale Price: Rs. 10 Million. Broker Fee: Rs. 300,000.

2. Rentals: Half Month

For rentals:

• Standard: The landlord pays Half a Month's Rent (for 1-year lease) or One Month's Rent (for 2+ years) as commission.

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3. Scam Warning: "Over-Price"

Unethical brokers add their fee on top of your price.

• Seller wants: Rs. 10M.
• Broker tells Buyer: Rs. 11M.
• Broker keeps: Rs. 1M (10%!).
• Risk: This kills the deal because the price becomes too high. Always insist on a flat 3% agreement.

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4. When to Pay?

Only after the deed is signed and money exchanged. Never pay commission on the "Advance" payment. Deals often fall through at the last minute.

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