Hi. I am a landlord of a mixed-use property out in California. Currently I have a tenant in a retail space that is up for a lease renewal. The tenant wants to use a real estate agent to negotiate the renewal. Am I obligated to pay a commission to their agent, or would I be able to deny the use of an agent so I do not have to pay a commission?
Updated over 3 years ago
**Edit: Neither the tenant nor I used a real estate agent at the signing of the original contract.
Have you agreed with an agent to pay them a commission, ie signed a contract with an agent?
If not, what the tenant agrees to pay an RE agent is purely their prerogative, you're not party to their contract, correct?
I don't see how you would be able to prevent the tenant from hiring an agent (just as they could hire an attorney or a DPOA to negotiate for them if they were on vacation or in the hospital, or their court appointed guardian could negotiate on their behalf), but you also don't have to pay for it.
I guess you'd need to figure out the actually standing of the agent, in what capacity does he represent the company.. why wouldn't the principals sign if they did before..