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I rented 2 apartments from her, 1 month for a studio ($3100) and 5 months for a 2 bedroom ($4500)
I signed the lease and moved in to the studio, at this point I have not signed the lease for the 2 bedroom but have already put my security deposit and first month rent for the 2 bedroom. I also gave her 1 month broker's fee of 4500.
During the viewing, I asked her if I could stay less than 5 months in the 2 bedroom. She said "yeah. Thats the good thing about short term rental. You are not really bound by the contract. As long as you give 30 days notice you are good. The day before I signed the lease, I changed my mind and wanted to back out from the 2 bedroom. So I aksed her if I can move out after a month since I have already paid for the first months rent. She checked with the owner and she told me I couldnt because i agreed to lease for 5 months. I did agree at the beginning but I have not signed the contract and changed my mind. I told her to change date on the contract. She said "no. The lease stays the same."
So now I have 2 options.
1. "Since you are forfeited your lease you can stay for the one month however we still have to waiting for the new tenant to lease the apartment in order for you get you security deposit"
So I can move in for the one month I paid for and get back my security deposit until they find a new tenant. I thought it was risky signing the contract.
2. Not move in at all and I will get me security deposit back but first month's rent gone.
I chose option 2, cos I would be risking my security deposit by signing the 5 months lease.
So, my concern is, Am i entitled to get back the remaining of my broker's fee back?
Their policy is 50% of monthly rent for 1-2 months lease and 1 month rent for 3-6 months lease.
Since I only stayed for 1 month, the broker's fee should be 1550 only, but I paid 4500 cos I thought I would be moving in to the 2 bedroom apartment.
i asked her about it and she obviously said it's non refundable. But i dont really trust her. Wondering if I can take the case to small claims court.
You said you didn't sign a lease for the 2 bedroom but you gave them money toward it? It isn't the broker that sounds shady but you who seems naive... I would never give money toward a rental before signing... Is there more to this story?
You said you didn't sign a lease for the 2 bedroom but you gave them money toward it? It isn't the broker that sounds shady but you who seems naive... I would never give money toward a rental before signing... Is there more to this story?
Thats actually because I was overseas and I had to wire the money so that they could hold the place. so I was unable to physically present to sign the contract.
Did you sign a fee agreement with your agent? That's probably going to have a clause(s) that will explicitly state when a commission has been earned. As well, really important to know what state this is all taking place in.
Generally speaking, most states have real estate statutes that state a commission is owed to a broker once a "meeting of the minds" has taken place. You originally agreed to the 5 month lease, then decided to back out; that original agreement normally constitutes a meeting of the minds, but it all varies state-by-state. For example, that is the law in NY state, but in NY City, you only get paid at the closing table.
As for your case, you're asking for 50% back because you only ended up staying just a month; however, your original lease term was supposed to be for 5 months. That's what the commission was based on, and just because you decided to move out early generally doesn't entitle you to recoup any of that commission; it's already been earned as the broker performed how you asked them to. Your changing of your mind after the fact doesn't come into play in regards to the fee.
Did you sign a fee agreement with your agent? That's probably going to have a clause(s) that will explicitly state when a commission has been earned. As well, really important to know what state this is all taking place in.
Generally speaking, most states have real estate statutes that state a commission is owed to a broker once a "meeting of the minds" has taken place. You originally agreed to the 5 month lease, then decided to back out; that original agreement normally constitutes a meeting of the minds, but it all varies state-by-state. For example, that is the law in NY state, but in NY City, you only get paid at the closing table.
As for your case, you're asking for 50% back because you only ended up staying just a month; however, your original lease term was supposed to be for 5 months. That's what the commission was based on, and just because you decided to move out early generally doesn't entitle you to recoup any of that commission; it's already been earned as the broker performed how you asked them to. Your changing of your mind after the fact doesn't come into play in regards to the fee.
Yeah Im in NYC. I did sign the fee agreement and it states everything is non refundable. Guess I have to let ut go. Thanks for your info.
I am currently waiting for my deposit. It's been almost 3 weeks no update from her about it. Gonna wait for 30 days and write a formal letter if it havent received it by then.
Yeah Im in NYC. I did sign the fee agreement and it states everything is non refundable. Guess I have to let ut go. Thanks for your info.
I am currently waiting for my deposit. It's been almost 3 weeks no update from her about it. Gonna wait for 30 days and write a formal letter if it havent received it by then.
The contract could say one thing, while the laws and courts could say another. In CA at least, it's illegal for LL to double-dip: hold you to the lease agreement while renting to someone else. Also, they have a duty to try to find other tenants.
With the money you decided to lose, I say, it might pay to talk to a lawyer.
The contract could say one thing, while the laws and courts could say another. In CA at least, it's illegal for LL to double-dip: hold you to the lease agreement while renting to someone else. Also, they have a duty to try to find other tenants.
With the money you decided to lose, I say, it might pay to talk to a lawyer.
I'm a broker in NYC, where the OP is, and unfortunately, LLs absolutely can double-dip here.
However, now knowing that OP is in NYC, they do have some sort of case: as I mentioned earlier, brokers in NYC only get paid at the closing table; unlike state law, a meeting of the minds is not necessary for a broker to have earned their commission, rather all contracts must be signed.
Since OP didn't actually sign the lease for the 2BR, the broker isn't necessarily entitled to that commission; as well, since no lease was consummated, the LL really has no right to either the security nor the first month's rent.
Considering the sums of money, I concur in contacting a real estate attorney; especially a fee agreement stating that the fee is non-refundable under any circumstances: I can't see any court in NYC actually upholding that as legally binding. Do you know if the firm in question is a member of REBNY?
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