Same disclaimer: Not a lawyer.

Though you say "Our management company sees themselves as representing both sides," I kind of doubt that. Though I'm a Realtor, I use some specialized agents to rent out a property I own. And they wouldn't considering themselves as "representing both sides." True, there's the standard language in the listing agreement, similar to yours, saying that if I sell (under certain conditions), I owe a 6% commission. The intent is that they'd act as a listing agent, not under dual agency.

In that case--and likely in your case (non-lawyer disclaimer), the commission would be split just as it would be in most sales. You'd owe the 6% to the listing agent. That agent, in turn, would share that commission with the agent representing the buyers.

Further--again, not a lawyer--you'd have no contractual agreement with your friend's (or buyer's) agent. You've never promised to pay him a dime. All you've probably done is promised to pay your management company a 6% commission. Whatever agreement your friend (or other buyer) might have with his agent is none of your concern. You've promised nothing to the other agent; you owe nothing to the other agent.

Finally, keep two things in mind: (1) All commissions are negotiable. Ask to have that 6% lowered, if you so choose. The management company may or may not agree. (2) Contracts are negotiable. My rental property is in Virginia (if that makes any difference) and we've modified that provision in the listing agreement in certain ways so that, under various conditions, if the property is sold we are not obligated to use the agents who handled the rental and we are not obligated to pay them. So: Don't accept (or agree to) a contract you're not happy with.

Hope that helps.

DISCLAIMER: This is not intended as legal advice. (thanks Danilo)

You are only required to pay the 6% per your contract/lease agreement. Now your tenant may not realize that the agreement they signed when they leased your home has a clause that requires they use them also...

They should check into this.

Our management company included in our contract (when we hired them to manage our property), that if at any point we sell our home to our tenant, that we have to pay 6% commission to them as they referred the buyer to us. Our tenant is looking to use his friend as his agent... I just want to make sure that we would not be obligated to pay his friend/agent too. Any clarification/confirmation would be greatly appreciated!

DISCLAIMER: This is not intended as legal advice.

It depends on what your contract states. Vicky is correct in saying that you can refuse dual agency in Virginia. But there's a section in most contracts where you check "agrees" or "does not agree" to Dual Agency - see which one was checked in your contract (which you already signed so there's probably not any way of going back and changing things around).

Valorie's suggestion is a good one. See what they say. If they still say that they're keeping all of the 6 percent and you think that it will hurt the sale of the property because the buyer won't/can't come up with another 3 percent to pay their agent, let them know that in the most firm words possible. It wouldn't make much sense for the company to not pay out some of that 6 percent to cover the costs of the Buyer's Agent in order to get the deal done.

I would also speak with a real expert in this matter - a real estate attorney. None of us here are lawyers nor know what the contract you signed says.

Danilo "D" Bogdanovic
http://LoudounScene.com
http://LoudounForeclosures.com

You can refuse dual representation. They must disclose agency to you in Virginia. Talk to the broker of that company and explain your situation.

I would discuss with your management company paying half of the 6% to the other agent. If not, you have only agreed to 6% and the tenant would be responsible for paying his/her agent. Good luck!