What if my potential tenant changed his mind? What would happen to the booking fee? And, commission? Part 1.
Similarly, this question can be “what if my prospect buyer changed his mind? What would happen to the booking fee? And, commission?
MEAS 2014 says:
4.2.7 If the other party to the deal aborts and the Client to the Firm forfeit the deposit (paid by the prospective buyer) before the signing of the sale and purchase agreement, or letting or leasing agreement, the Firm is entitled to claim 50% of the full fee or 50% of the forfeited deposit whichever is the lower.
4.2.8 Where earnest deposit or rental deposit is paid and accepted by the Client and subsequently the transaction is aborted by the Client, before the signing of the sale and purchase agreement or letting agreement, where in the lease/letting, occupation has not taken place, the firm is entitled to 50% of its full fees plus all disbursements or 50% of the earnest deposit or rental deposit plus all disbursements, whichever is the lower.
Therefore, the outgoing agent has completed his job in looking for a tenant/purchaser. He is entitled to 50% of the fee or 50% of the booking deposit, whichever is the LOWER.
This means when a deal is aborted and the booking fee forfeited, the firm has done some work to entitle to claim 50% of the commission or booking fee, whichever is the LOWER.