Prior Property Manamement Company Sales Commission Rights

[Randy Tanner]

Jurisdiction

Arizona

I signed an Agreement with a Property Management Company (aka Broker) to manage an out of town Property in 2002 - that Broker placed tenants who still reside there. I terminated the Broker agreement in 2008 and have been acting as Property Manager since we moved to that town – the same original tenants have been living there under a new lease between me and them. These current tenants now desire to buy the house and I was wondering if the below term from the original 2002 Broker Agreement is still applicable (i.e., whereby the Management company could still seek a Sales Commission if these tenants bought the house). Note, the term "holdover" is not defined in the lease.



Term from 2002 Broker Lease:

Leasing Commission: Sales Commission: Owner agrees to pay Broker a commission of 6% if during the term of any lease of the Property, including any renewals or holdovers, or within 180 days after lease termination, any tenant or tenant's heirs, executors or assigns enters into an agreement with Owner to purchase the property

 

[army judge]

Term from 2002 Broker Lease:

Leasing Commission: Sales Commission: Owner agrees to pay Broker a commission of 6% if during the term of any lease of the Property, including any renewals or holdovers, or within 180 days after lease termination, any tenant or tenant's heirs, executors or assigns enters into an agreement with Owner to purchase the property

If, as you INDICATED in YOUR top-post the agreement was terminated in 2008, the paragraph cited above would no longer be applicable.

You can sell your property without paying anything to your former property management firm.

 

[zddoodah]

Not reason to think it wouldn't still be applicable (it is completely common for contract provisions to survive termination), but trying to form any sort of firm conclusion based only on one paragraph out of context would be foolish.

 

[Randy Tanner]

Not reason to think it wouldn't still be applicable (it is completely common for contract provisions to survive termination), but trying to form any sort of firm conclusion based only on one paragraph out of context would be foolish.

Thank You for the response. Note there is no a Survival provision in the Agreement; further, no other term is either specifically or generally tied to or addresses this provision (including the Termination provision, which simply states Owner may Terminate at any time given 30 days advance notice). I only word I'm really not sure of here is "holdover" which, as I mentioned, is not a defined term in the agreement, so I'm looking for how that term could/would be applied as a general term in the Property Management world. Again, thank You for your thoughts