I have rental property in CA and the lease contract for year 2011-2012 soon needs to be renewed. The real-estate agent who prepares the original contract would like to increase her commission for the renewal. I reject this offer. She stated that 2011-2012 lease contract she marked that “if a fixed term lease is executed and is extended or renewed. Payment is due such extension or renewal.” Under this condition
1) Am I obligated to renew the 2012-2013 lease contract using her service?
2) Is there any way I can get out of this situation, and not use her service again?
3 )If I let the lease expire not renew it. Then wait a month or two and prepare a new lease contract with another agent for the same tenant, am I still obligated to pay her commission?
Your advice is greatly appreciated
You may be able to get out of the obligation, but an attorney needs to study the contract you have with her. It would not cost you too much to have the contract reviewed and may end up saving you money.
Information I provide in this forum is not legal advice. The information provided is only general information that may or may not apply to you and may or may not be based on current law. I am NOT YOUR attorney. For specific legal advice you need to contact an attorney and enter into a retainer with that attorney.
You are not obligated to use the same real estate agent, BUT you might be obligated to pay that real estate agent commissions if the tenant renews. it all depends upon how your listing agreement with the real estate agent reads.
In many instances, even if you let the lease expire and then wait, and then enter into a new lease agreement with the same tenant, the agent may come back claiming commission is owed.
Frank W. Chen has been licensed to practice law in California since 1988. The information presented here is general in nature and is not intended, nor should be construed, as legal advice for a particular case. This Avvo.com posting does not create any attorney-client relationship with the author. For specific advice about your particular situation, please consult with your own attorney.
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