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RE: rental contract with a broker( exclusive marketing

RE: rental contract with...

RE: rental contract with a broker( exclusive marketing agreement) to lease an apartment, there is a clause, saying" if BW brokerage in any action or suit to this agreement to enforce any provisions or right under this agreement to collect fees or commissions, SELLER agrees to pay BW all reasonable attorney's fees, court costs and litigation expenses incurred by BW in such action or suit I am not a Seller, I am a lessor renting out, not selling... so this clause is irrelevant to landlord?

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

Illinois

Lawyer's Assistant: Has anything been filed or reported?

No

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Answered in 6 minutes by:
3/12/2018
Lori
Lori, Attorney
Category: Legal
Satisfied Customers: 2,447
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H​ello. Let me see if I can assist. I am a real estate attorney with over 25 years experience. Give me a moment to review and type my reply.

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M​ost broker and real estate agents have their prospective clients sign a marketing or brokerage agreement so they can enforce their commissions. It appears as if this agent/broker is using an agreement tailored to sale of the property, instead of rental. If you look at the defined term in the agreement for "seller" and the signature line at the bottom of the agreement where you are to sign as "seller" - the intent of the agreement is for you to be bound to pay fees and commissions to the broker/agent and to pay them their attorneys' fees if they have to enforce the agreement to get paid their commission. If you sign the agreement as "seller" - you will be bound to pay commissions and any possible attorney's fees if they have to enforce the agreement to get paid. The court will have to interpret any ambiguity in the contract as to rental of the property and procuring a tenant instead of a buyer.

I recommend that you request a different agreement from the broker/agent as this one is not clear and does not specify its application to rental of the unit.

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Customer reply replied 5 months ago
Is it best to ask the broker cross out that to rule out any remotely possible future disadvantages to Lessor.?
In case It actually boils into law suit, can the preceding judge interpret that seller and Lessor are the same?

Yes, you can ask the broker to cross out any language as to seller. The broker will probably change the title to lessor instead. If it ever went to a lawsuit, the judge would likely interpret the seller as the lessor since you agreed to pay a fee for the broker procuring a tenant for you.

Lori
Lori, Attorney
Category: Legal
Satisfied Customers: 2,447
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