20181019 (Fri)
Can my landlord finds his own tenant and reject mine despite appointing me as agent? Part 2.
In such case when you are excited to bring the booking fee to landlord, and landlord had just rented out the property himself, what safeguard do you have?
YOU HAVE NONE!
This is for the protection of rights of principal. Principal is the reason that there is an agency. If there is no principal, there is no agent. Hence, agent is always a servant to the principal. When principal carries out the instruction himself behind the agent, the agent can ask for exclusive appointment. This means no matter what happens, the commission for job is to be paid when it is done. Even when the principal rents out himself, he has to pay the commission to the agent.
Of course, the principal can choose not to appoint the agent as an exclusive appointment. Then, it is up to the agent to accept a lesser prominent role, be it ad hoc, sole or joint agency. MEAS Standard 3 has the explanation to the types of appointment above.
So, you may ask: what then if I bring my prospect over, the principal always turns it down. It seems that he just use my advertising at no cost!
Well, if such is the case, you walk off. You have the rights to terminate the agency any time you suspect that the principal has bad faith. However, if there are jobs done, the principal canNOT withhold his payments to agent. Notwithstanding, holding against a principal who is more resourceful and prominent is never a good business decision.
We discuss his circumstances tomorrow.