Broker Fees

You should read your original agreement with the realtor. Did it say they were entitled to a 4% commission if the tenant ended up buying the unit? If not, you owe them nothing.

That did sound ridiculous if that is the case.

I think you need to find a new friend.

There is no law, just contract. Check your contract, you may well owe 4%. But don't be afraid to negotiate and even allow it to go beyond threats of a lawsuit into an actual lawsuit. Seriously.

Verain is right, it depends entirely on what is in your lease/listing agreement -- many realtors insert a clause claiming commission if the unit is sold to the tenant, arguing that they have indeed performed the job of bringing the seller a qualified buyer -- check your paperwork.

ali r.
{downtown broker}

Let this be a lesson - be careful what you say to whom.

No, the lesson is be sure to read your contracts.

1. If he was truly your friend, he should have made you aware of the clause to begin with.
2. If he was truly your friend, he would not have included the clause.
3. If he was truly your friend, he would not now enforce the clause.
4. If he was a smart businessman, he would now lower (or forego) the fee to encourage repeat business.
Your friend sounds like an @sshole.
But you should have read the contract before signing it.

Just more evidence that brokers are the scum of the earth with shiny suits. All they do is walk in the apartment with you and say "if you want it, you need to bid $x over asking or it will be gone in 5 minutes" and for that they claim to be some sort of professional. Let's be honest, a used car salesman makes more effort (and requires greater skill) than these idiots.

Not a fan of brokers in general, but you had the right to review and revise the contract. I can see the brokers point if the tenant has only been renting a couple months, but not if the lease is up or something similar to that. Either way, you can certainly negotiate with the broker. Tell them take $5K or you will not sell it to the renter. Good luck.

I don't understand Jeff's hostility toward brokers.

Brokers do not force buyers to buy or sellers to sell.

If a buyer thinks he or she can do without a broker, than he can do so.

And if a seller thinks he or she can sell without a broker, then that is a choice too.

I am not a broker, nor am I related to a broker, nor do I have any friends who are brokers.

I agree with Verain. Brokers are fine if you recognize that (like most of us) they will generally act in their own best interest. Good brokers understand that treating customers honestly makes them repeat customers and sources of referred business. Just use them appropriately.

In this case, the contract will probably dictate the result. The "friend" may not have the ability to reduce the commission, which would be owed to his company. Obviously, contracts need to be read carefully. If you can't do that effectively or don't want to, get a real estate lawyer to help.

Verain's disclaimers also apply to me. But I have had a good experience with a broker who helped us to find and buy an apartment.