Question

Jon is a broker who manages properties. Kevin owns an apartment building that he wants Jon to manage. When negotiating the property management agreement, Jon includes a clause that says if Kevin ever wants to sell the building, he must list it with him. This is an illegal:______

Answer 1

Answer:

The clause is an illegal provision.

Explanation:

An illegal provision is a clause or condition that is unenforceable by it's very nature. Kevin owns all the legal interest in the apartment. Jon has no legal interest in the apartment.

A legal interest refers to the right to legally possess and use a property. This right is enforceable under the law.

If Jon as a broker co-owns the apartment, then the clause or provision he inserted becomes legal. Given that he doesn't, the clause is void ab initio.

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