Refunding of agents commission and the diplomatic clause

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pfjonesy
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Refunding of agents commission and the diplomatic clause

Post by pfjonesy » Mon, 07 Jun 2010 1:28 pm

All,

I am in the process of agreeing a tenancy agreement, and whilst we have no agents commission to pay, the agent has sent me a ltter of undertaking for my review / agreement that if we need to exercise the 12+2 expat clause then we agree to refund the commission paid by the landlord on a pro rata basis. Is this standard, should I (or am I obliged) to agree to this?

Any views appreicated.

Cheers.

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sundaymorningstaple
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Post by sundaymorningstaple » Mon, 07 Jun 2010 2:43 pm

I would say it depends on how badly you want the property. Is it a deal breaker for you? Him?
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

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Post by carteki » Mon, 07 Jun 2010 2:59 pm

While I agree with SMS, It does seem a very logical request to make. The landlord has paid for a 2 year income stream. If you leave early, then that 2 year income stream has not materialised and he will need to pay another commission to obtain a new income stream. Should it be you or the agent who is responsible for the cost? Debatable - but ultimately it is your choice as to whether or not to leave early.

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Post by x9200 » Mon, 07 Jun 2010 3:46 pm

We did not have such clause in any of our TAs but I agree it is a reasonable request.

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Mad Scientist
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Re: Refunding of agents commission and the diplomatic clause

Post by Mad Scientist » Mon, 07 Jun 2010 5:57 pm

pfjonesy wrote:All,

I am in the process of agreeing a tenancy agreement, and whilst we have no agents commission to pay, the agent has sent me a ltter of undertaking for my review / agreement that if we need to exercise the 12+2 expat clause then we agree to refund the commission paid by the landlord on a pro rata basis. Is this standard, should I (or am I obliged) to agree to this?

Any views appreicated.

Cheers.
Guys

Correct me if I am wrong, OP said if he was to terminate the contract, the agent request to refund or pro rate the commission.
If this is the case, NO , it is not standard and you are not oblige. First of all the commission is between the agent and the landlord, you are the third party, under contract or tort if your TA has stated specifically third party liabilities albeit refund the commission then you have to adhere to it. If not, you are not liable, the agent is just wanting to compensate loss of income thru you.
To my understanding, commission paid is all up front after the TA is signed, refunding or pro rating it after the deal is not completed has no direct implication on you
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Post by x9200 » Tue, 08 Jun 2010 8:51 am

MS, to my understanding the agent has proposed an agreement to partly cover the commission by the tenant (under the mentioned circumstances). If the tenant (to be) agrees with it then he/she will be obliged. If not, then not.
I don't think neither it is a standard thing but I think it is fair.

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Post by Mad Scientist » Tue, 08 Jun 2010 8:52 am

x9200 wrote:MS, to my understanding the agent has proposed an agreement to partly cover the commission by the tenant (under the mentioned circumstances). If the tenant (to be) agrees with it then he/she will be obliged. If not, then not.
I don't think neither it is a standard thing but I think it is fair.
Ok ,my bad ,I misread, yes I agree fair enough on both ends
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Post by NBB2 » Wed, 09 Jun 2010 10:41 am

Seems fair to me, and to my understanding, quite common, if not standard. After all, the dip clause gives you an escape hatch in the event of a premature bailing out of the lease by you. I mean, it may be outside your culpability, but you're still breaking lease.

So in return for this escape hatch, they request that you cover any costs that occur as a result of your premature bailing out.

So yeah, again, seems fair to me.

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