U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Real Estate Professionals
 [Register]
Please register to participate in our discussions with 1.5 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Jump to a detailed profile or search
site with Google Custom Search

Search Forums  (Advanced)
Business Search - 14 Million verified businesses
Search for:  near: 
 
Old 01-15-2009, 03:51 PM
 
14 posts, read 103,314 times
Reputation: 50
Default Confused About Tenant Agreement/Brokers Fee

I need some clarification on the "Exclusive Right to Represent Tenant Agreement".
I think I have a really great agent. We've talked over the phone and through e-mail. I'm meeting with him soon to view a few rentals. I'm out of state. I just want your feedback on this paragraph from the agreement.

The Broker's Fee shall be 50% of the first months rent. If the landlord or the landlords representative offers compensation to the Broker, then the Tenant authorized the Broker to receive such compensation and the amount of such compensation shall be credited against the Tenants obligation to pay the Broker's Fee.
Any obligation incurred under this agreement on the part of the Tenant to pay the Broker's Fee shall survive the term of this Agreement.

My realtor says the brokers fee is paid by the Landlord. I just want to be sure I'm not paying the brokers fee...
Any thoughts?
Reply With Quote Quick reply to this message

 
Old 01-15-2009, 04:59 PM
 
Location: WNY
1,049 posts, read 2,450,693 times
Reputation: 244
It looks to me (I am no lawyer) that you are ultimately responsible for the fee, HOWEVER, in the event that the owner of the place you are renting pays that fee, you are off the hook and do not have to pay it. Normally the owner of the property pays the fee, just like in a buyers agreement when someone is purchasing a home, the agent is covering his or hers butt, which makes sense.
Reply With Quote Quick reply to this message
 
Old 01-15-2009, 05:08 PM
 
15,385 posts, read 19,863,664 times
Reputation: 6435
As what you stated...you are responsible and I'm a Landlord and I don't pay realtors for bringing me a tenant other than maybe $ 50.-...I managed to get tenants myself and use many times, the same website to advertise.

Realtors in my area want a month rent as compensation for bringing a tenant and screening them..Screening can be done online for as little as $ 15.- or less or a little bit more, so the $ 1450.- isn't reasonable to me and not worth it. For a one year lease to pay so much....,
so be prepared to pay as you have stated, he will present you a bill.
Reply With Quote Quick reply to this message
 
Old 01-15-2009, 05:48 PM
 
Location: NorthTexas
634 posts, read 888,412 times
Reputation: 314
The amount paid for commissions varies here and is in the listing agreement for the property. Sometimes it is 25% and sometimes it is 50%. We are only paid when the tenant pays a full months rent. It is paid by the owner of the property being leased.
Reply With Quote Quick reply to this message
 
Old 01-15-2009, 07:30 PM
 
Location: Salem, OR
10,799 posts, read 17,758,087 times
Reputation: 6646
Based on that clause I would concur that you are agreeing to pay 50% of your monthly rent. So if you rent was $800, you would pay the agent $400. If the landlord was willing to pay $100 to the agent, then you would owe $300.

That's how I read that clause.
Reply With Quote Quick reply to this message
 
Old 01-15-2009, 08:21 PM
 
Location: WNY
1,049 posts, read 2,450,693 times
Reputation: 244
Quote:
Originally Posted by Silverfall View Post
Based on that clause I would concur that you are agreeing to pay 50% of your monthly rent. So if you rent was $800, you would pay the agent $400. If the landlord was willing to pay $100 to the agent, then you would owe $300.

That's how I read that clause.
only on the firsts months rent though................
Reply With Quote Quick reply to this message
 
Old 01-16-2009, 12:10 PM
 
Location: Central Texas
16,166 posts, read 21,801,705 times
Reputation: 12255
That is in the buyer's agreement that we use for both sales and rentals here. It protects the agent from not being paid for the work they've done in representing you (which, of course, you wouldn't want to happen), but it states that the broker will first go to the listing broker/seller/landlord for payment, and only if those parties will not pay (and I've never known that to happen) is the buyer/tenant liable for whatever is not paid. (Though, in practice, if the co-broke offered is less than the amount agreed to by the buyer/tenant, we won't go after them for that.)

For the most part, this has to do with unrepresented sellers/landlords who may or may not be willing to pay the buyer's agent for bringing them the buyer/tenant. Some recognize it as an ordinary cost of doing business and figure it into their business expenses; others don't.
Reply With Quote Quick reply to this message
 
Old 01-16-2009, 01:18 PM
 
Location: Salem, OR
10,799 posts, read 17,758,087 times
Reputation: 6646
Quote:
Originally Posted by CAugust View Post
only on the firsts months rent though................
Yes...not an ongoing thing.
Reply With Quote Quick reply to this message
 
Old 01-16-2009, 01:38 PM
 
1,151 posts, read 1,824,282 times
Reputation: 238
The answer to your question is yes, you are paying your broker's commission unless the landlord agrees to pay it. The only way to know is to ask you proposed landlord, and even if he says yes, you should still put it in your lease. "Landlord to pay $X to tenant's broker upon commencement," or something like that. That's not legal advice.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Over $84,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Real Estate Professionals
Similar Threads

All times are GMT -6.

2005-2014, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25 - Top