Agent's fee

Hi.

I need legal advice on payment of agent's fee.

We bought a house in Q4 2010. First, we actually wanted to rent the house that we bought. It is when we spoke with the owner that we knew that they are selling the house. Now, prior to the conversation with previous owner, this supposed agent just pointed to us that the previous owner was willing to rent the house to us, not sell, but rent. To make it short, we bought the house through bank loan.

The seller only paid this supposed agent 50% of her 5% agent's fee, because she actually did not facilitate the selling. Prior to this, she introduced another person to us who will "work" on the transfer of title and deed of sale so that we can submit the loan. This person swindled us and was put behind bars this week. My wife did all the leg work in order to furnish the bank with transfer title and deed of sale.

This morning, this supposed agent tried to get her 50% of her 5% agent's fee from us. My wife, trying to mitigate further confrontation paid 15,000 pesos per the agent's request. BTW, she doesn't have a license to operate as an agent.

My questions. Do we really have to pay this agent's fee when this person is not a licensed agent? Or, even if she is a licensed agent, she did not facilitated the sale properly? Is she worth getting paid for not doing any substantial work? Can I file a case against her? Can I file extortion, coercion and public disturbance against her and her daughter because they are causing us public humiliation?

I appreciate your advice on this.

Regards,
Ronald DL

RESA law prohibits anyone without any PRC broker's license to broker a sale. you must be a registered agent/broker before one is entitled to a commission. most importantly, the seller , who is the one obliged to pay the commission, must have issued an authority to sell before the agent can claim his commission.

as far as i can remember, these are the requisites before one is entitled to a commission:

1. the agent must be a licensed broker (PRC)
2. the agent must have been issued an authority to sell by the owner of the property.
3. the agent must be able to sell the property within the period of his authority.
4. the property was sold through the agent's direct participation and effort (in my own words).


** i cant remember if there are other requisites. if there are, those might have already escaped my memory.

Thank you so much for your replies taxconsultantdavao.

I guess this is how we get repaid for being tolerant and good neighbor. This fake agent said: "dapat bayaran nyo ang commission ko kasi ako ang nagturo sa bahay na yan, ganyan ang patakaran dito sa Batangas".