Has a landlord's attorney ever actually voided a lease to dodge a broker commission?
I work escrow so I see the paperwork after the fight is already over, and I had a file cross my desk last quarter where exactly this happened. Landlord signed a lease with a tenant the agent produced. Agent had a signed exclusive listing agreement, 6% on the first year's rent, which on a $4,200 a month unit came to just over $3,000. Two weeks after lease execution the landlord's attorney sent a rescission notice to the tenant claiming a material term was never agreed upon, citing a parking clause that had genuinely been left vague. Tenant walked. New lease signed directly with the same tenant 34 days later, parking clause now papered up properly, no agent involved. Agent got nothing.
The commission agreement the agent had was solid on its face. The exclusive ran through the end of the month. What it did not have was a protection period, so once the listing term expired the landlord just waited it out and re-papered the deal. The parking thing gave the attorney a colorable argument to void the first lease before the term even ran out, which meant the landlord did not have to wait. I do not know whether that argument would have held in court because the agent did not sue, probably because $3,000 does not justify the filing fees plus counsel.
The thing I kept thinking about reading that file was that the lease voiding was almost secondary. The real exposure was the missing tail clause. With a 90-day protection period naming that tenant by name, the second lease triggers the commission regardless of what the attorney does with the first one. No tail, no protection, full stop.