If a property is sold by owner do you have to pay a property manager a commission on that sell for allowing the buyer access to the home in your absence?
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If a property is sold by owner do you have to pay a property manager a commission on that sell for allowing the buyer access to the home in your absence?
I owned a rental property for several years and utilized a property manager. Several
months ago I found a person who was interested in buying the property and had
them contact the property manager so they could arrange a date and time to view
the home because we had a renter residing in the home at the time. The potential
buyer met the property manager at the home, viewed the home, and verbalized to
me afterward that they may be interested in buying the property when the renters
lease was up but not at that time. Fast forward 8 months, Ive maintained regular
contact with the buyer in the interim and showed the home again to the buyer and
their spouse myself after the renter had vacated the premises. They have now
purchased the property. I received an email from my previous property manager
stating that she is also a licensed real estate agent and feels that because she
showed the house to the buyers 8 months ago she is entitled to a commission. At
no time did I sign a listing contract with this individual and my only business
relationship involved her managing my rental property and that relationship ended
when the renter left a few months ago. Legally, do I owe this person a commission?
Asked on January 3, 2019 under Real Estate Law, Wisconsin
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
It depends on what your property management agreement with her stated. If it did not provide for a commission for her if she helped show/sell the house, she is not entitled to one: she showed the house as part of her property management job/duties. But sometimes these agreements do provide for a commission if the manager (if the manager is a realtor) helps sell or show the building; therefore, check what you have agreed to, to see is she is entitled to a commission.
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