legal liability of an agent
Seems Im on a roll here but this is an important one. Say I got an agreement to be paid a commission for a lease over a period of years. The agreement is that the commission will be paid as long as the tenant is there. Say tenant leaves in middle of that year, then we have to return the commission for that year. The payment will go to brokerage. But say 8 years down the road agent is not with the brokerage, and if wed have to return the commission amount, is the agent responsible for the brokerages portion being returned to landlord (say the brokerage wont return their portion, or if that agent and broker arent in contact anymore)? This is probably a question for an attorney, however no attorney seems to be answering!
The commission agreement reads
"The parties agree that Sam Smith on Broker’s behalf has procured for Owner a tenant, Mega Furniture & Material For Less II". This is the line that describes the agent. The principal broker is signing this agreement.
Thanks for all your input
The agent is virtually never going to be responsible because technically all sales belong to the broker, since agents cannot broker real estate without working under a broker (at least in the states I'm familiar with). When a property closes, the brokers are the ones who split the agreed commissions, and the agents get whatever their deal is with the broker (60/40, 50/50, whatever).
The broker could have an agreement with the agent describing your scenario, I suppose. It would be a dumb move for the agent but in that case the broker may be able to force performance in court - I doubt it, though.
Interesting words. What do you mean by this?
The broker could have an agreement with the agent describing your scenario, I suppose. It would be a dumb move for the agent but in that case the broker may be able to force performance in court - I doubt it, though.
What type of agreement are you referring to?
