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So I pay the holding deposit. The apartment has been under construction that was to be completed 6/15.
It is not finished. However, the agent wants me to go sign the lease and give him his commission in cash today.
I would then get the keys "a few days later".
I'm thinking of delaying signing the lease until construction is complete. Also, do I have a right to demand keys at lease signing if within 1 or 2 days of a July 1 moving date? Is it usual for rental properties to provide keys a few days after lease signing?
The agent simply wants to get paid. The delay is also delaying his pay day. Signing the lease means the aget has done his job, he is out of it from that point and the LL or you must pay his fee. From that point the rental is between you and the LL.
As long as you wish to wait, and have placed a deposit, and have a receipt in writing, then there is no need to sign the lease. What you need to do is to communicate with the LL and his Agent, do this in writing, inquiring as to when the apartment will be ready, reminding that they are holding the deposit, indicating that you continue to have interest in renting,and stating that TIME IS OF THE ESSENCE.
Signing the lease is questionable. If the apartment is not delivered upon the lease date then the lease agreement is technically breached. Also, the LL could be held liable for expenses you may incur as a result of the delay, but only if the lease is executed by both parties.
That said, by signing the lease you may expose yourself to the LL, who may claim that once the apt is ready that YOU assume the lease teerms and pay rent, even though you may have lost interest and/or found and moved into another apt.
So you might find yourself in court defending yourself against a claimby the LL, and the issue will be WHO breached the lease. It may be obvious that the L did, but you'll still have to convince the court. By not signing the lease you will not be so exposed. Yet by reinforcing the the 'holding agreement' in writing, you can stiil maintain the right to rent the apt.
The agent simply wants to get paid. The delay is also delaying his pay day. Signing the lease means the aget has done his job, he is out of it from that point and the LL or you must pay his fee. From that point the rental is between you and the LL.
As long as you wish to wait, and have placed a deposit, and have a receipt in writing, then there is no need to sign the lease. What you need to do is to communicate with the LL and his Agent, do this in writing, inquiring as to when the apartment will be ready, reminding that they are holding the deposit, indicating that you continue to have interest in renting,and stating that TIME IS OF THE ESSENCE.
Signing the lease is questionable. If the apartment is not delivered upon the lease date then the lease agreement is technically breached. Also, the LL could be held liable for expenses you may incur as a result of the delay, but only if the lease is executed by both parties.
That said, by signing the lease you may expose yourself to the LL, who may claim that once the apt is ready that YOU assume the lease teerms and pay rent, even though you may have lost interest and/or found and moved into another apt.
So you might find yourself in court defending yourself against a claimby the LL, and the issue will be WHO breached the lease. It may be obvious that the L did, but you'll still have to convince the court. By not signing the lease you will not be so exposed. Yet by reinforcing the the 'holding agreement' in writing, you can stiil maintain the right to rent the apt.
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I would never, ever pay something like that in cash, receipt or not. It seems to me that the issue shouldn't be getting the keys but whether the apartment will be ready on time, since workers are notorious for being late.
I just dealt with the same issue for one of my clients. They almost lost the apartment because they did not want to sign the lease until 7/1 when the work would be completed.
They almost lost the apartment because the landlord refused to hold the apartment while he was waiting for the leases to be singed. If anyone had come in behind my clients and submitted an app and signed the lease, they would have lost it.
We finally came to an agreement where leases where signed, but I am not picking up my commission check from them until the 1st of July when they get their keys.
On the other hand, I would never give an agent cash. I believe it is against real estate law for the agent to demand or accept cash for the commission check, as any money paid should be in check, money order (or wired) to the broker or company, not the agent. Especially if your agent does not own the company. There is a 50% chance that he or she is trying to circumvent their broker and the commission split. I would report the agent immediately.
I just dealt with the same issue for one of my clients. They almost lost the apartment because they did not want to sign the lease until 7/1 when the work would be completed.
They almost lost the apartment because the landlord refused to hold the apartment while he was waiting for the leases to be singed. If anyone had come in behind my clients and submitted an app and signed the lease, they would have lost it.
We finally came to an agreement where leases where signed, but I am not picking up my commission check from them until the 1st of July when they get their keys.
On the other hand, I would never give an agent cash. I believe it is against real estate law for the agent to demand or accept cash for the commission check, as any money paid should be in check, money order (or wired) to the broker or company, not the agent. Especially if your agent does not own the company. There is a 50% chance that he or she is trying to circumvent their broker and the commission split. I would report the agent immediately.
Curious, was a deposit submitted and accepted by the Ll or his agent?
A soultion based upon the facts above w/b for the renters to execute a lease *dated* 7/1 with the term to also begin 7/1. In this way the lease won't be in effect until 7/1 AND if the apt is not 'acceptably' delivered on 7/1 then the llease is breached and the renters will not be liable for terms after 7/1.
If the apt is delivered after 7/1 then a new lease with the appropriate dates can be executed by the parties.
Re the Agent and his fee, upon an executed lease dated with the start date 7/1 and with the client/renters ready and able to accept delivery on the start date 7/1, the Agent has earned the fee and is entitled to payment, even if the LL has not delivered the apt on the start date, 7/1 (and has technically breached the lease).
In this way all parties, LL, Tenant, and Agent, are secured AND the onus is upon the LL to fulfill his promises. If the LL fails, the agent is still entitled to a fee from the LL. If the fee is to be paid by tenant, then technically the tenant is responsible to the Agent, but the LL will be liable to the tenant for expenses (including fees) incurred as a result of the LL's failure to deliver and fulfil the lease terms.
Though, in your example, I wonder if the LL is being unreasonable wanting all weight to be in his advantage and not willing to bear any risk. In which case the tenant should simply walk away. This is a situation in which an Agent must finesse his true client, the LL! An ethical and experienced Agent would recognize the circumstance and act in the interest of the tenant/client and suggest finding the tenant a better circumstance, then 'massage' the LL with a little white lie and/or just saying the tenants refuse. In which case the Agent simply finds the tenant a new apt and gets paid and the LL a new tenant and gets paid. Better to guard your rep with the tenant and the prospective public. The LL, under the circumstance s/b easy to handle. In the end the LL loses nothing and you serve your tenant/client, gain rep and hopefully reccommendations. What is an Agent w/o prospective tenants/buyers??? With such, finding LLs/Sellers is relatively easy.
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Cash, check, money order? Either one is sufficient. The main issues is to establish a 'paper trail'. It is most easily done with a check with a well descerned 'memo' line. Second best is a money order again with memo notation. Cash is just as good as long as a recepit is received, again with notation. In all instances a confirmation letter/email s/b delivered including the details and/or terms to which the monies was tendered. THIS is how one, PROFESSIONALLY, does business!!!
The only real advantage over cash with a check or money order can be in the terms, for example, that the check or money be 'held' and not cashed. The 'Hold' can be termed to a certain date and/or conditioned upon one or both of the parties completing some 'act', upon which the check/money order can be rightfully deposited, or in some instances returned uncashed.
The important point are the terms, conditions, and confirmation, w/o such check or money order has little to no advantage. The thing to remember, w/o fail, is that Cash equals RECEIPT, and in all cases written CONFIRMATION is a necessity!!
An experienced Agent s/b aware of proper business techniques, meanings, and purposes, and integrity demands that the Agent so advises his *client* and sees to it that his clients act in their best interest, which in the long run, is also in the interest of the Agent. Such things distinguishes from a *quality* Agent with longevity and a good business from the despate 'YOs' just looking for a payday (unfortunately the majority) who will be doing something else, for a livng, in a few months! This is especially important as an Agent moves upscale where a sure professionalism is demanded.
Luck!
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