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We paid a commission in full for a 5 year lease..tenant

Customer Question
We paid a commission...

We paid a commission in full for a 5 year lease..tenant defaulted after 14 months. broker refuses to relist the space for lease or return any commission

Lawyer's Assistant: Because laws vary from place to place, can you tell me what state the property is in?

PA

Lawyer's Assistant: What are the terms of the lease? Any issues related to maintenance or upkeep?

Tenant called me and said she has a personal issue and needs to move out of the space

Lawyer's Assistant: Anything else you want the lawyer to know before I connect you?

I do have a listing contract w the broker that satated payment in full at signing of lease...hoping there is a provision to get something back

Submitted: 10 months ago.Category: Landlord-Tenant
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Answered in 1 minute by:
9/18/2017
Lawyer: Loren, Lawyer replied 10 months ago
Loren
Loren, Lawyer
Category: Landlord-Tenant
Satisfied Customers: 39,217
Experience: Attorney with 30 years of experience representing landlords and tenants.
Verified

Thank you for using JA. I am Loren, a licensed attorney for over 30 yrs., and I am here to help.

I am a certified expert on JustAnswer since 2009, with nearly 100% in 5 star ratings. So, we should be able to work through your problem.

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The site may ask you if you wish to speak by phone for an extra charge. Many find the phone call to be the easiest and fastest way to get the information they need without posting on a public forum. I am also happy to continue online.

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Lawyer: Loren, Lawyer replied 10 months ago

Does the listing agreement contain any provision or warranty in the event of tenant default before the end of the lease term?

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Customer reply replied 10 months ago
i didnt see anything overt. but i am not an attorney. my initial guess is they may have misrepresented the financials of the lessee
Customer reply replied 10 months ago
the listing contract is pretty boilerplate
Customer reply replied 10 months ago
seems to me to be bad business to take a big commission then abandon the client..but thats not against the law...there are provisions for fraud and misrepresentation though
Lawyer: Loren, Lawyer replied 10 months ago

Thank you for the additional information.

The listing agreement would need to contain a provision warranting the tenant against default for you to be entitled to a refund or for the broker to be obligated to relist.

However, if they misrepresented material facts about the tenant they presented in order for you to sign the lease and pay them a commission, it is breach of contract, at best, and fraud, at worst.

So, you may want to present it in that light to them, because if you prevail in a fraud suit against them then you could be entitled to punitive damages and attorney fees, as well.

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Customer reply replied 10 months ago
interesting...I am trying to track down the email commusincations w the broker to see if there is a specific item that i can cite
Lawyer: Loren, Lawyer replied 10 months ago

Look for some sort of misrepresentation of a material fact in the tenant's finances which the broker was aware of and which they failed to bring to your attention. That could subject them to substantial liability to you.

Please remember to leave a favorable rating (click 5 stars in the rating section on this page). It is the only way that I am credited by JustAnswer for answering your question.

There is no additional charge to you for rating me favorably.

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Lawyer: Loren, Lawyer replied 10 months ago

Did you have further questions? Please let me know if i have answered your question satisfactorily.

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