Asked by Anonymous
Seeking Advice on Commission Payment After Early Termination of Tenancy Agreement
Hi everyone,
I’m seeking some advice regarding a situation I’m facing with my tenancy agreement for a condo lease. Here’s a summary of what happened:
1. **Early Termination**: As tenants, we exercised premature termination 3 months before the end of our 3-year lease (lease end date: 15 Mar 2025). 2. **Notification**: We informed the landlord’s agent on Jan 2024 about our intention to terminate the lease early, with the move-out date set for 15 Dec 2024. 3. **Agreement**: The landlord and agent agreed to the early termination. 4. **Move-Out**: We moved out on 15 Dec 2024 as planned. 5. **Agent’s Failure to Secure Replacement**: The agent failed to secure a replacement tenant by 15 Dec 2024 and the landlord demanded that we continue paying rent for January and February 2025. 6. **New Tenant Found**: A replacement tenant was finally found and signed a new 3-year lease starting from 20 Feb 2025. 7. **Commission Demand**: The agent is now demanding that we pay the full commission for the newly signed 3-year lease, citing Clause (e) in our tenancy agreement.
Here’s the relevant clause for reference: > *(e) In the event should the tenant has to terminate this said tenancy agreement prematurely, the tenant is required to find a replacement tenant at the same rental rate or prevailing market rate (whichever is higher). The tenant is required to engage the services of the said landlord's agent in finding a replacement tenant. Tenant is also required to bare all marketing costs and commissions in finding the replacement tenant. Replacement tenant is subject to the approval of the landlord before tenant is allowed to exit this agreement.*
**Our Questions**: 1. **Commission Payment**: Is it fair for us to pay the full commission for the new 3-year lease, especially since the agent failed to secure a replacement tenant by our move-out date (15 Dec 2024)?2. **Rent for Jan and Feb 2025**: Since the agent couldn’t find a replacement tenant until 20 Feb 2025, are we legally obligated to pay rent for January and February 2025, even though we moved out on 15 Dec 2024 and the landlord/agent agreed to the early termination? 3. **Clause Interpretation**: Does Clause (e) truly require us to pay the full commission for the new lease, or pro-rated of remaining month(unfulfilled term)?
Has anyone experienced a similar situation? Any advice on how to handle this or whether we should seek legal assistance would be greatly appreciated.
Thank you in advance for your help!
Hi everyone,
I’m seeking some advice regarding a situation I’m facing with my tenancy agreement for a condo lease. Here’s a summary of what happened:
1. **Early Termination**: As tenants, we exercised premature termination 3 months before the end of our 3-year lease (lease end date: 15 Mar 2025). 2. **Notification**: We informed the landlord’s agent on Jan 2024 about our intention to terminate the lease early, with the move-out date set for 15 Dec 2024. 3. **Agreement**: The landlord and agent agreed to the early termination. 4. **Move-Out**: We moved out on 15 Dec 2024 as planned. 5. **Agent’s Failure to Secure Replacement**: The agent failed to secure a replacement tenant by 15 Dec 2024 and the landlord demanded that we continue paying rent for January and February 2025. 6. **New Tenant Found**: A replacement tenant was finally found and signed a new 3-year lease starting from 20 Feb 2025. 7. **Commission Demand**: The agent is now demanding that we pay the full commission for the newly signed 3-year lease, citing Clause (e) in our tenancy agreement.
Here’s the relevant clause for reference: > *(e) In the event should the tenant has to terminate this said tenancy agreement prematurely, the tenant is required to find a replacement tenant at the same rental rate or prevailing market rate (whichever is higher). The tenant is required to engage the services of the said landlord's agent in finding a replacement tenant. Tenant is also required to bare all marketing costs and commissions in finding the replacement tenant. Replacement tenant is subject to the approval of the landlord before tenant is allowed to exit this agreement.*
**Our Questions**: 1. **Commission Payment**: Is it fair for us to pay the full commission for the new 3-year lease, especially since the agent failed to secure a replacement tenant by our move-out date (15 Dec 2024)?2. **Rent for Jan and Feb 2025**: Since the agent couldn’t find a replacement tenant until 20 Feb 2025, are we legally obligated to pay rent for January and February 2025, even though we moved out on 15 Dec 2024 and the landlord/agent agreed to the early termination? 3. **Clause Interpretation**: Does Clause (e) truly require us to pay the full commission for the new lease, or pro-rated of remaining month(unfulfilled term)?
Has anyone experienced a similar situation? Any advice on how to handle this or whether we should seek legal assistance would be greatly appreciated.
Thank you in advance for your help!
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Thanks for your insight.
Is it standard practice to include this clause without specifying the exact commission amount/rate to be paid by the outgoing tenant? Pursuing legal action would likely be challenging and burdensome.