Question – what letting fee is managing agent entitled to? One year lease with a one year option. tenant is about to sign the option.
Agency agreement NSW REI form FM 00150 clause 3 reads- Agent is entitled to the following fees -“1 week rent for up to twelve months, 2 weeks letting fee for 1 year lease” as a letting fee upon effecting any letting of the premises.
Does this mean the agent is entitled to a letting fee when the option is taken up by the tenant. If the tenant stays on with out signing the lease there is no fee , but what if they sign the lease? Thanks
pw
Answer to the original Post – the agent has refunded the letting fee for the option as the fee is for lettings (as the agent did not perform any functions of letting such as opens, reference checks , screening applicants they are not entitled to any fee) according to the Office of Fair trading and the NSW REI.
pw
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