Refund of brokerage fees after winning in the Mehir LaMishtaken program
Question
Hello.
A broker who concluded a contract for a client, and the client breached the contract because he won in the Mehir LaMishtaken program – does the broker have to return the brokerage fee?
Answer
Shalom u’vracha.
No, he is not required to return the brokerage fee.
Source
In Siman 185, se’if 10, regarding matchmaking fees (shadchanus), the Rema explains that the time customarily set for payment is also the time that creates the obligation to pay. Once matters have reached that stage, even if the arrangement later falls apart, the matchmaker does not have to return the money unless such a condition was explicitly stipulated. Although the poskim there disagree whether the engagement (erusin) already obligates payment even when the custom is to pay at the time of the wedding – since there are penalties for breaking off a shidduch, or perhaps those penalties are not considered benefit but only distress – nevertheless, it is certainly so with the signing of a contract: that is the time designated for payment, and it is what creates the obligation for the brokerage fee. If the contract is later cancelled, that is not connected to the contract that was signed earlier.