For donations Click Here

Real Estate Agent Fees


Dear Rabbonim,
A house was for sale under the exclusivity of an agent. The terms were informally for 3 months exclusivity with a commission payable – the amount of which has since been forgotten but was between 1-1.5%. A few people were shown but little or no marketing was undertaken.
The exclusivity ended and a few months afterwards the agent introduced a client to the property but it was rejected by them. The client then began looking for a rental instead of a purchase.
The situation changed and the house was taken off the market and needed to be rented. The agent then brought the same client to the property, around 6 months later, for the purpose of renting and this was successful. The renter paid the commission to the agent of 1 months’ rent. The owner was not asked, and did not pay any commission at this time.
After payment the agent said to the renters don’t worry this will be deducted from my commission if you choose to buy the property. No agreement or terms were agreed between the renter and agent.
The agent has had no involvement with the sale or renters since the initial viewing, nor brought anyone to the property for sale over the last year or more.
Do we assume an implied understanding and minimal commission is due? Is it due from both parties, or one party? And what is the minimal prevailing custom for commission in Israel, for both the owner and renter turned purchaser?
Is a viewing that does not work out, but then becomes a renter considered enough of an introduction to warrant a commission?
Finally what is the right thing to do?
Thank you in advance




In general, a question when there are two sides to the story cannot be answer without hearing both sides first, and you can’t take this answer as a final ruling. However according to what you are writing, since the house was no longer for sale, especially to this renter, as they didn’t want it, and you changed your mind and decided not to sell it. Therefore, whatever went on between you and the real estate agent finished. If the renter will decide to buy the apartment later on, that is a new story, and you would not have to give the agent a commission.

Best wishes



Leave a comment

Your email address will not be published. Required fields are marked *