What is the interpretation of Term of Tenancy on this clause?

[me2019]

What is the name of your state? MD

I have a rental property. The owner-management agreement with the property manager has a x% fee clause to be paid to the agent that I hired to find the tenant (on the top of the one-month lease commission). Here is the exact clause.

Owner agrees to pay Agent a sales commission equal to x% of the selling price of the property if, during the term of the tenancy or within 120 days after tenant vacates, Owner sells or agrees to sell Property to tenant or exchange or agree to exchange it with tenant for other property of any kind and wherever located. Owner understands and agrees that the sales commission provided for herein shall be due according to the terms herein regardless of whether this property management agreement is terminated prior to the sale or exchange of Property. The purpose of this paragraph is not to solicit a listing of the property. This provision does not grant the tenant any right to purchase the Property, nor does it authorize Agent to offer the Property for sale.

Q: If the current lease ends on 1/31/2019, and I manage it on my own after 1/31 with the same tenant. And the tenant approaches me on 3/1 and ends up purchasing, will I still pay x%? Does the term of the tenancy extend beyond the current lease agreement?

 

[Zigner]

Contract review is beyond the scope of this forum. You really should have this reviewed by an attorney to help you understand the contract that you entered in to.

Having said that...it would appear to this layman that you would owe the commission in the scenario you have presented. The clause seems to survive even if you terminate the management agreement.

 

[LdiJ]

What is the name of your state? MD

I have a rental property. The owner-management agreement with the property manager has a x% fee clause to be paid to the agent that I hired to find the tenant (on the top of the one-month lease commission). Here is the exact clause.

Owner agrees to pay Agent a sales commission equal to x% of the selling price of the property if, during the term of the tenancy or within 120 days after tenant vacates, Owner sells or agrees to sell Property to tenant or exchange or agree to exchange it with tenant for other property of any kind and wherever located. Owner understands and agrees that the sales commission provided for herein shall be due according to the terms herein regardless of whether this property management agreement is terminated prior to the sale or exchange of Property. The purpose of this paragraph is not to solicit a listing of the property. This provision does not grant the tenant any right to purchase the Property, nor does it authorize Agent to offer the Property for sale.

Q: If the current lease ends on 1/31/2019, and I manage it on my own after 1/31 with the same tenant. And the tenant approaches me on 3/1 and ends up purchasing, will I still pay x%? Does the term of the tenancy extend beyond the current lease agreement?

120 days is approximately 3 months. Therefore if the tenant purchase the property from you within approximately three months of you terminating the property manager, it looks like you would owe a sales commission. 3/1 would be within that three months.

 

[me2019]

The word that I am trying to intepret is '... during the term of the tenancy...' ... if I no longer work with that property manager, and the tenant extends the lease, does it still consider as within the term of the tenancy? If I can modify the example, current lease ends 1/31, the tenant renew lease but the property is managed with a different PM, and the tenant purchased the unit 6 months later

 

[Zigner]

The word that I am trying to intepret is '... during the term of the tenancy...' ... if I no longer work with that property manager, and the tenant extends the lease, does it still consider as within the term of the tenancy? If I can modify the example, current lease ends 1/31, the tenant renew lease but the property is managed with a different PM, and the tenant purchased the unit 6 months later

Without a thorough review of the contract and the facts in your matter, the best you're going to get is a guess. Contract review is beyond the scope of this (or any) internet forum. You will want to consult with local legal counsel.