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I made a contract with one of group real estate agent to lease a my house.
After 7 days, I decide to cancel a contract.
When I inform them about it, they are asking me compensation to cancel the contract. How can I get out without paying them? By the way, I am in California Los Angeles.
It was a contract to for them to lease out a house that you own, right? If they were into it a week, they probably had some time invested, as well as possibly advertising costs. There is probably a clause in the contract addressing this situation. And it probably says you have to reimburse them for any expenses they have incurred on your behalf.
Read it. Do what it says.
*Edit* I see you posted this in 2 places, and on the other forum you said they are asking for $3000, which is one month's payment??? Their share is $3000??? Usually you pay a manager 10% or less, so that means the rent is $30,000 per month? Or they just placing someone and one month's rent was the amount agreed to? We need more information here...
Or are you the renter and moved into the house for a week and now want out of the contract?... because that is an entirely different issue.
I am an owner looking to lease out my house and that I entered into a listing agreement (One of group agent). I signed a contract that I will pay a month payment to them if they lease a house but I never realize that I have to pay them even when I cancel the contract. Because the agent said that I only pay them if they lease a house and I don't have to keep the contract period.
The contract says,
3. COMPENSATION:
Notice: The amount or rate of real estate commissions is not fixed by law. They are set by each Broker individually and may be negotiable between Owner and Broker (real estate commissions include all compensation and fees to Broker).
A. Owner agrees to pay to Broker as compensation for services, irrespective of agency relationship(s):
(1)
percent of the total rent for the term specified in paragraph 2 (or if a fixed term lease is executed, of the total
For fixed-term leases:
(a) Either (i) base payments due under the lease); or (ii) ; ONE MONTH PAYMENT
(b) Owner agrees to pay Broker additional compensation of , if a fixed term lease is executed and is extended or renewed. Payment is due upon such extension or renewal.
(2) For month-to-month rental: either (i) percent of ; or (ii) .
(3) The following terms apply whether the tenancy is for a fixed term or month-to-month:
(a) If during the Listing Period, or any extension Broker, cooperating broker or any other person procures a Tenant who offers to lease/rent the Premises on the above amount and terms, or on any amount and terms acceptable to Owner. (Broker is entitled to compensation whether
any tenancy resulting from such offer begins during or after the expiration of the Listing Period.)
(b) If Owner, within calendar days after the end of the Listing Period or any extension thereof, enters into a contract to transfer, lease or rent the Premises to anyone (“Prospective Transferee”) or that person’s related entity: (i) who physically entered and was shown the Premises during the Listing Period or any extension thereof by Broker or a cooperating broker; or (ii) for whom Broker or any cooperating broker submitted to Owner a signed, written offer to lease or rent the Premises. Owner, however, shall have no obligation to Broker under this sub-paragraph 3A(3)(b) unless, not later than 5 calendar days after the end of the Listing Period or any extension, Broker has given
Owner a written notice of the names of such Prospective Transferees.
(c) If, without Broker’s prior written consent, the Premises are withdrawn from lease/rental, are leased, rented, or otherwise transferred, or made unmarketable by a voluntary act of Owner during the Listing Period, or any extension.
B. If commencement of the lease or rental is prevented by a party to the transaction other than Owner, then compensation due under paragraph 3A
shall be payable only if and when Owner collects damages by suit, arbitration, settlement or otherwise, and then in an amount equal to the lesser of
one-half of the damages recovered or the above compensation, after first deducting title and escrow expenses and the expenses of collection, if any.
C. In addition, Owner agrees to pay: NONE
D. Broker may retain compensation due from any Tenant payments collected by Broker.
E. Owner agrees to pay Broker if Tenant directly or indirectly acquires, or enters into an agreement to acquire title to Premises or any part thereof,
whether by sale, exchange or otherwise, during the term or any extension of tenancy, compensation equal to
price or total consideration in said transfer, whichever is greater. Payment is due upon Tenant's direct or indirect acquisition of any legal or equitable
interest in the Premises and, if there is an escrow, shall be through escrow.
F. Broker is authorized to cooperate with and compensate other brokers in any manner acceptable to Broker.
G. Owner warrants that Owner has no obligation to pay compensation to any other broker regarding the lease or rental of Premises unless the
Premises are leased or rented to:
If Premises are leased or rented to anyone listed in 3G(1) during the time Owner is obligated to compensate another broker: (i) Broker is not
entitled to compensation under this Agreement; and (ii) Broker is not obligated to represent Owner with respect to such transaction. For fixed-term leases:
(a) Either (i)
base payments due under the lease); or (ii) ;
(b) Owner agrees to pay Broker additional compensation of ,
if a fixed term lease is executed and is extended or renewed. Payment is due upon such extension or renewal.
(2) For month-to-month rental: either (i) percent of ; or (ii) .
(3) The following terms apply whether the tenancy is for a fixed term or month-to-month:
(a) If during the Listing Period, or any extension Broker, cooperating broker or any other person procures a Tenant who offers to lease/rent the Premises on the above amount and terms, or on any amount and terms acceptable to Owner.
(b) If Owner, within 180 calendar days after the end of the Listing Period or any extension thereof, enters into a contract to transfer, lease or rent the Premises to anyone or that person’s related entity: (i) who physically entered and was shown the Premises during the Listing Period or any extension thereof by Broker or a cooperating broker; or (ii) for whom Broker or any cooperating broker submitted to Owner a signed, written offer to lease or rent the Premises. Owner, however, shall have no obligation to Broker under this sub-paragraph 3A(3)(b) unless, not later than 5 calendar days after the end of the Listing Period or any extension, Broker has given Owner a written notice of the names of such Prospective Transferees.
(c) If, without Broker’s prior written consent, the Premises are withdrawn from lease/rental, are leased, rented, or otherwise transferred, or made unmarketable by a voluntary act of Owner during the Listing Period, or any extension.
3. COMPENSATION
A. Owner agrees to pay to Broker as compensation for services, irrespective of agency relationship(s):
(c) If, without Broker’s prior written consent, the Premises are withdrawn from lease/rental, are leased, rented, or otherwise transferred, or made unmarketable by a voluntary act of Owner during the Listing Period, or any extension.
Yep if you singed it i would say You owe them.
In Southern Louisiana market Normal compinsation was One months rent +10-15% of rent every month after.
In Eastern Oklahoma market Normal compinsation was 25% of first months rent +8 -15% of rent every month after.
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,957 posts, read 22,309,298 times
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I thought I had answered this one, but I must have navigated away from the page before I hit post.
Raise the monthly rental price to $1,000,000. If they produce someone to rent it, you'll make some money. Since they obviously wont rent it, you aren't in danger of having to pay them a fee. When they see they aren't going to make any money on your rental, they just might release you from the contract.
I thought I had answered this one, but I must have navigated away from the page before I hit post.
Raise the monthly rental price to $1,000,000. If they produce someone to rent it, you'll make some money. Since they obviously wont rent it, you aren't in danger of having to pay them a fee. When they see they aren't going to make any money on your rental, they just might release you from the contract.
But in the contract,
2. LISTING TERMS:
A. RENT AMOUNT: Three thousand Dollars $ 3,000 per month
Can you turn down showings when they try to show the house? Just make it difficult to get in. Keep the house a mess if people show.
I would want a 24 hour notice, I would raise the deposit amount to $8000, I would ask for a 3 year lease, no smokers, no pets, and any othe "No" i could get by with legally.
Also, I would want to run credit checks and it would never be good enough.
Make it difficult.
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Canceling a real estate contract
