Question Details

Alex,  in Berkeley, CA

What happens to the broker if their tenant is doing illegal activities in the leased space?

Asked by Alex, Berkeley, CA Fri Feb 20, 2009

Assuming the sales agent did not know, I know the all contracts could possibly be voided, but does he/she have any liability?

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I think it would depend on the type of illegal activity involved. Most leases have language prohibiting illegal activity. You'd have to review the contracts involved. I think the only responsibility of an agent/broker would be to inform their clients first then possibly law enforcement if appropriate. You would have to prove that there was knowledge & approval of the activities. That's not an easy thing to prove 100%. You'd probably have to consult a local attorney to explore possible liability.

Most property owners I know wouldn't condone or allow illegal activity due to the liability involved. Property owners have lost property to the state in cases of blatent drug dealing etc.
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0 votes Thank Flag Link Fri Feb 20, 2009
That's an interesting question & I,m anxious to read the answers here.
0 votes Thank Flag Link Fri Feb 20, 2009
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