Who Pays Auctioneers fees when Leasing Land

[jumper1]

Hi , My Grandmother is thinking of Renting land to a Farmer(MR Y) next year and received the contract Yesterday . My Grandmother rang the Auctioneer(Ms X) and asked who would be paying the Annual Auctioneers fees and MS X said that it would be my Grandmother as she is renting the Farm to MR X.

On reading the contract in relation to the Auctioneers fees , she could not see where it specifically mentions who would actuappy pay the Auctioneers fees not to mind my Grandmother . She showed me the contract last night and i am at odds to determine who is to pay the Annual Auctioneers fees either. I have given the wording below on what has been written in the Contract re the Auctioneers fees and maybe somebody may be able to point out where it implies that my Grandmother has to pay these fees , is it by default. ?? I would have assumed as it is a legal document that everything has to be in Black and white .

In consideration of the rents and other payments and covenants and the part of the tenant herein after reserved and contained the owner herby lets unto the Tenant all that and those part of the lands of the owner situate at Very Big Hill, small hill in the County of MAYO being part of the lands contained in folio 1234 of the register of Co Mayo as is more specifically referred to on the map attached – 10 acres hereto and thereon surrounded by the red Verge Line to Hold the same for a period of 4 seasons from 1st Feb 2013 Yielding and paying a rent of €1,400 per season. Rent in respect for each term to be paid by half yearly instalments in advance of the first day of Feb. and the 15th day of August of each year together with auctioneers fees of 7 % per annum on the rent and vat of the appropriate rates of fees.

Thanks in advance

Regards, Jumper 1

 

[T McGibney]

I thought the above is perfectly clear- tenant pays rent in 2 instalments plus auctioneer fees plus VAT. Am I missing something?

 

[Bronte]

ar together with auctioneers fees of 7 % per annum

It was presumably your grandmother who hired the auctioneer. So she pays him. Did she agree his fees in advance. Is 7% normal for finding someone to lease land, (someone else might comment on that). But I would have thought a percentage of the annual rent in year one for finding the tenant would be normal, but I don't see how they would be entitled to it annually. For what? Let's say this lease runs for 20 years then the auctioneer will be entitled to 7% of the rent for 20 years? Also is their a clause that the rent can be reviewed every so often. Not sure what way farmers do things but one needs to be careful when signing contracts. Maybe the rent does not justifiy the hiring of a solicitor.