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Michelle, Other/Just Looking in Texas

My realtor found a tenant for a rental property. The agreement listed 50% commision to be paid (broker alone

Asked by Michelle, Texas Wed Jun 25, 2008

or in cooperation with another broker) upon leasing. My concern is that now, the realtor says I owe 100% of the first month. 50% to my realtor and 50% to the tenants realtor. I did not sign additional documents agreeing to another 50% going to an additional party. Unfortunately I am jaded and think I am getting ripped off. Can anyone advise if this is common practice? And I actually do owe 50% to 2 different people.


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Commissions are negotiable and they are not set by law. Your answer is in your listing agreement. They may have told you that you would pay only 50% of a month if the same agent that listed it will bring a tenant and if another one does then you have to pay 1 month's rent.

1 month's rent is not out of the norm btw. Actually if you offer less than 50% of a month's rent, it is probably not worth it to any agent to show especially with the prices of gas climbing.

2 votes Thank Flag Link Wed Jun 25, 2008
From your description that the listing agreement said 50%, then that is what you owe.
The paragraph on Commissions, 5 of TAR-1102, covers the fees you should pay. Unless there is an entry under Other Fees, your liability is shown as the checked box 5A(1), (2) or (3). If (1) is checked and 50% filled in, that amount is intended to cover all brokers and all agents, including all their splits. Note that on the broker splits are disclosed under paragraph 8.
It's possible something is also present under 5D, but this is rare.
Be sure to check Special Provisions paragraph 15 for modifications that might change the commission owed.
Lastly, it is possible that your Realtor did not use the association's form, in which case you'll have to dig into it to find your liability for fees. A quick call to the broker will clarify for you and the Realtor what should be paid.
1 vote Thank Flag Link Sat Jul 19, 2008

You may owe the commission to both agents. Check your listing agreement. This is common practice. By the efforts of your realtor the co-operating broker has brought you a tenant. While you could attempt to renegotiate the commission, your realtor may have advertised that on the MLS and would be obligated to pay the commission. It is not fair to either agent to withdraw your offer of compensation after the fact.

Carol Pease
Web Reference: http://www.CarolPease.com
1 vote Thank Flag Link Thu Jul 3, 2008
It is common for the total commission on leases to be 100% of the first month. A generous broker will give 50% to the leasee's broker and keep 50% although percentages vary from 25% to 50%.

Look at your representation agreement and your leasing agreement and see what you signed and agreed to pay. If you are an auditory person, you may be remembering what you think you heard. It could be a simple misunderstanding. What is written and signed off on is what you agreed to.
1 vote Thank Flag Link Thu Jun 26, 2008
I would read your agreement to verify the amount. It sounds like you only owe 50% which would then be split by the two agents involved.
0 votes Thank Flag Link Thu Nov 20, 2008
look, did you get a tenant or not?? pay the agent
0 votes Thank Flag Link Thu Jul 10, 2008

I'm sorry about your problem. Have the listing agent go back over the listing agreement with you. Fees are negoitable, but they typically range from 50% to 100% of one months rent to the broker for leasing. The fee is then typically split 50/50 between the agents if more than one agent was involved, but it doesn't have to be this way. It just depends on what was agreed to in your listing agreeement with the broker. Good luck.
0 votes Thank Flag Link Fri Jun 27, 2008
Bruce Lynn, Real Estate Pro in Coppell, TX
You need to read your contract. I do not practice real estate in Texas.
Normally the terms of commission payment are stipulated very clearly.

In California a lease commission rate is typically a set percentage of one years' rent, for example if the apartment rented for $1000 per month, it would be a set percentage of $12,000, split equally between the two parties.
0 votes Thank Flag Link Wed Jun 25, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
If you agreement clearly list 50% only where it is split between the listing broker / tenant broker that is all you are required to pay. It appears that could be a mistake perhaps an agent not accustom to listing properties for lease. If they listed in MLS 50% for the tenant agent, that is all their mistake. OF COURSE I HAVE TO LIST A DISCLAIMER: I don't have the doc's therefore I can only make comments based on your information provided your listing broker should enforce the contract that was authored. contact the broker.

0 votes Thank Flag Link Wed Jun 25, 2008
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