Expert: liznarr - 1/20/2005

Question
Hi-
A real estate agent found a summer tenant for my vacation home, and I paid the 10% commission. He also had me sign an agreement giving the broker a commission if I ever rented or sold the property to this person. I guess that is standard, but I'm not sure.
This year, a Trust, operated by this person's wife, wants to rent the property. She says a commission is not involved, as she was never on the lease, and because her trust is a legal person.
Any ideas?
thanks

Answer
Hi Coup,

Thanks for writing All Experts.  Yours is a very interesting question.

There are numerous ways a Trust can be set up.  The language within the body of the Trust will set forth the limitations and authority of the Trustee who manages the Trust.  My thoughts below should not be construed in any way as legal advice as I am not qualified to give you legal advice.

I do understand exactly what you are asking and what you are trying to accomplish.  On the face of what you have presented, if the Agreement you signed made mention of only the summer tenant/person who rented your vacation home and made no specific reference to the same tenant/person being the beneficiary of a Trust, for example, you might be able to bypass the Agreement that was signed.

Since I have seen neither the Trust nor the Agreement you signed with the real estate agent, my suggestion would be to seek legal advice in your state.  One question that comes to mind would be a legal obligation involving a tort should the real estate agent's Broker decide to press the issue.  Another issue for you to consider is the “term” of the Agreement you signed with the real estate agent:  How long ago was this agreement signed, and what was the expiration date of the agreement and language you referred to?

Hope the above is helpful.  Good luck to you, and write again if you have additional questions.

Regards,
Elizabeth Narr