<div dir="ltr">I litigated this exact issue recently. I represented the property manager who had a short provision in the management agreement stating if the owner wanted to sell the property during the term of the contract the owner would use the manager as the agent/broker. The provision further stated that if the owner used another firm to market and sell the property then the manager would be owed damages equaling 6% of the sale price. The case was contested but in the end the court stated that the owner agreed to it and it was a valid contract. The owner paid a double commission in the end.<div><br></div><div>I am not saying every judge would do the same. But if you represent the owner make sure you review these management contracts carefully.</div><div><div><br clear="all"><div><div dir="ltr" class="gmail_signature" data-smartmail="gmail_signature"><div dir="ltr"><div>Kelby J. Derenick </div><div>Attorney</div><div><br></div><div><div style="color:rgb(34,34,34)"><b><span style="font-family:garamond,"times new roman",serif">9414 State Ave., Suite E</span></b></div><div style="color:rgb(34,34,34)"><b><span style="font-family:garamond,"times new roman",serif">Marysville, WA 98270<br>Ph: (206) 659-5061</span></b></div></div><div><div style="color:rgb(34,34,34)"><div><b style="font-family:garamond,"times new roman",serif"><br></b></div></div><div style="color:rgb(34,34,34)"><b><span style="font-family:garamond,"times new roman",serif">14 E. Main Street, Suite 207</span><br></b></div><div style="color:rgb(34,34,34)"><font face="garamond, times new roman, serif"><b>Walla Walla, WA 99362</b></font></div><div style="color:rgb(34,34,34)"><b><font face="garamond, times new roman, serif">Ph: (509) 676-9805</font></b></div></div><div><span style="color:rgb(0,0,0);font-family:"Book Antiqua",serif;font-size:11pt"><br></span></div><div><span style="color:rgb(0,0,0);font-family:"Book Antiqua",serif;font-size:11pt">CONFIDENTIALITY NOTICE: This electronic mail message contains information that (a) is or may be legally privileged, confidential, proprietary in nature, or otherwise protected by law from disclosure, and (b) is intended only for the use of the Addressee(s) named herein. If you are not the intended recipient, an addressee, or the person responsible for delivering this to an addressee, you are hereby notified that reading, using, copying, or distributing any part of this message is strictly prohibited. If you have received this electronic mail message in error, please contact me immediately and take the steps necessary to delete the message completely from your computer system. Thank you.</span><br></div><div><div style="margin:0px;padding:0px 0px 20px;width:468.381px;color:rgb(34,34,34);font-family:Roboto,RobotoDraft,Helvetica,Arial,sans-serif;font-size:medium"><div><div style="margin:8px 0px 0px;padding:0px"><div><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div><span style="font-size:11pt;color:rgb(0,0,0);font-family:"Book Antiqua",serif"><br></span></div></div></div></div></div><div></div><div></div></div></div><div></div></div></div></div></div></div></div><br></div></div></div><br><div class="gmail_quote"><div dir="ltr" class="gmail_attr">On Tue, Apr 18, 2023 at 2:42 PM Laird, Katherine <<a href="mailto:KatherineLaird@centurypacificlp.com">KatherineLaird@centurypacificlp.com</a>> wrote:<br></div><blockquote class="gmail_quote" style="margin:0px 0px 0px 0.8ex;border-left:1px solid rgb(204,204,204);padding-left:1ex"><div class="msg-5251451912591567187">
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<p>Ideally, this would not be mandatory. The owner could agree to allow the PM to make a proposal for selling the property in the future as part of a competitive process. . What is the proposed brokerage fee? is it in this PM agreement? I suspect not. Also,
I would only agree to this provision if the property manager has the chops to sell a building of this size and scope (at the time of sale) and the fee arrangement is already established. I would argue a commitment to sole source the brokerage work in the
future would warrant a discounted fee. <span>😉</span></p>
<p><span>good luck,</span></p>
<p><span>Katherine</span></p>
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<div id="m_-5251451912591567187divRplyFwdMsg" dir="ltr"><font face="Calibri, sans-serif" style="font-size:11pt" color="#000000"><b>From:</b> <a href="mailto:wsbarp-bounces@lists.wsbarppt.com" target="_blank">wsbarp-bounces@lists.wsbarppt.com</a> <<a href="mailto:wsbarp-bounces@lists.wsbarppt.com" target="_blank">wsbarp-bounces@lists.wsbarppt.com</a>> on behalf of Nestor Gorfinkel <nestor@GlcLawyer.com><br>
<b>Sent:</b> Tuesday, April 18, 2023 2:15:54 PM<br>
<b>To:</b> WSBA Real Property Listserv<br>
<b>Subject:</b> Re: [WSBARP] "Linkage" Agreement</font>
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<strong>[EXTERNAL]</strong><br>
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<p class="MsoNormal">I have seen management agreements that include those clauses. However, on behalf of owner I would exempt transfers to related parties, related entities or for estate planning purposes. I would also add refinances, Helocs or other loans
in your case.<u></u><u></u></p>
<p class="MsoNormal"><u></u> <u></u></p>
<p class="MsoNormal"><u></u> <u></u></p>
<p class="MsoNormal"><span>Cordially,<u></u><u></u></span></p>
<p class="MsoNormal"><span><u></u> <u></u></span></p>
<p class="MsoNormal"><span style="color:black">Nestor Gorfinkel, Attorney at Law<u></u><u></u></span></p>
<p class="MsoNormal"><span style="color:black">Licensed in Florida & Washington State<u></u><u></u></span></p>
<p class="MsoNormal"><span style="color:black">Florida Civil-Law (International) Notary<u></u><u></u></span></p>
<p class="MsoNormal"><span style="color:black"><u></u> <u></u></span></p>
<p class="MsoNormal"><span><img width="167" height="95" style="width: 1.7395in; height: 0.9895in;" id="m_-5251451912591567187Picture_x0020_2"></span><span style="color:black"><u></u><u></u></span></p>
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<p class="MsoNormal"><b><span>From:</span></b><span> <a href="mailto:wsbarp-bounces@lists.wsbarppt.com" target="_blank">wsbarp-bounces@lists.wsbarppt.com</a> <<a href="mailto:wsbarp-bounces@lists.wsbarppt.com" target="_blank">wsbarp-bounces@lists.wsbarppt.com</a>>
<b>On Behalf Of </b>Chris B<br>
<b>Sent:</b> Tuesday, April 18, 2023 4:51 PM<br>
<b>To:</b> <a href="mailto:wsbarp@lists.wsbarppt.com" target="_blank">wsbarp@lists.wsbarppt.com</a><br>
<b>Subject:</b> [WSBARP] "Linkage" Agreement<u></u><u></u></span></p>
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<p class="MsoNormal"><u></u> <u></u></p>
<p class="MsoNormal">One of my property management clients wants a clause in its management agreement whereby the client agrees to also list the property with them if they choose to sell during the term of the contract. I would never agree to such a clause
myself, but aside from that, any thoughts on whether this would be permissible?<u></u><u></u></p>
<p class="MsoNormal"><br>
The same client also has an agreement where he loans money to its clients if they can’t afford to pay for needed repairs. This seems sketchy to me too, but I am curious what everyone else thinks.
<u></u><u></u></p>
<p class="MsoNormal"><u></u> <u></u></p>
<p class="MsoNormal"><span>Chris Benis<u></u><u></u></span></p>
<p class="MsoNormal"><span>First Avenue Law Group, PLLC<u></u><u></u></span></p>
<p class="MsoNormal"><span>321 First Avenue West, Seattle, WA 98119<u></u><u></u></span></p>
<p class="MsoNormal"><span>206.447-1900 office – 206.447.9075 fax – www.
<a href="http://firstavenuelaw.com" target="_blank">
firstavenuelaw.com</a> <u></u><u></u></span></p>
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