Property Broker Commission Agreement

The Property Broker Commission Agreement is a legal document that establishes the terms and conditions between the owner of a property and a real estate agent who will act as the exclusive sales agent for the property. The agreement highlights the importance of engaging the agent's services and outlines the responsibilities of both parties.

 

The document begins with a brief introduction, stating the names and principal places of business of the owner and the agent. It emphasizes that the owner desires to engage the agent as the sole and exclusive sales agent for the property, and that the agent is engaged in the business of leasing and marketing properties.

 

The agreement is divided into several sections, each addressing specific aspects of the agreement. The first section, Article 1, focuses on the term and termination of the agreement. It states that the agent's duties and responsibilities will begin on the current date and end on a specified end date, unless terminated earlier by either party with a 30-day written notice. It also outlines the commissions payable to the agent for any new leases or transactions executed within six months following the expiration or termination of the agreement.

 

Article 2 of the agreement covers the services to be provided by the agent. It states that the agent will act as the exclusive broker for leasing and/or selling any space in the building on the property. The agent will perform the services in accordance with applicable professional standards and will be responsible for preparing a marketing plan and budget for the property. The owner will refer all inquiries to the agent and conduct all negotiations through the agent. The article also addresses advertising, sale expenses, security deposits, and technical matters.

 

Article 3 focuses on indemnification, stating that the agent will defend, indemnify, and hold harmless the owner and its affiliates from any third-party claims arising out of the agent's gross negligence or intentional misconduct.

 

Article 4 addresses the compensation of the agent, specifying that the agent will receive remuneration for its services in accordance with the terms of the agreement and a schedule attached to the agreement.

 

Article 5 covers the notices to be given under the agreement, stating that all notices, demands, consents, and reports must be in writing and delivered by hand or by a nationally recognized overnight courier service.

 

Article 6 contains general provisions, including confidentiality, limited liability, non-discrimination, survival of certain provisions after termination, attorney's fees, and the sale of the property.

 

The agreement concludes with a schedule that outlines the agent's compensation, including sale commissions and commissions for new leases and expansions. It specifies the time of payment for these commissions.

 

In summary, the Property Broker Commission Agreement is a comprehensive document that establishes the relationship between the owner and the agent, outlines their respective responsibilities, and provides for the payment of commissions. It is an essential document for ensuring a clear understanding of the terms and conditions of the agreement.

How to use this document?

1. Review the entire Property Broker Commission Agreement to understand its purpose and scope.

2. Pay attention to the term and termination provisions in Article 1, which specify the start and end dates of the agreement and the conditions for termination.

3. Familiarize yourself with the services to be provided by the agent, as outlined in Article 2. This includes the agent's responsibilities for leasing and marketing the property, advertising plans, sale expenses, and technical matters.

4. Understand the indemnification provisions in Article 3, which state that the agent will defend and hold harmless the owner from any third-party claims arising from the agent's gross negligence or intentional misconduct.

5. Review the compensation terms in Article 4 and the attached schedule. This includes the agent's commissions for sale transactions, new leases, and expansions, as well as the time of payment.

6. Take note of the general provisions in Article 6, which cover confidentiality, limited liability, non-discrimination, survival of certain provisions after termination, attorney's fees, and the sale of the property.

7. Ensure that you comply with any applicable laws and regulations related to the property and the services provided.

8. Seek legal advice if you have any questions or concerns about the agreement or its implications.

9. Keep a copy of the fully executed agreement for your records.

10. Regularly review and update the agreement as necessary to reflect any changes in the relationship between the owner and the agent or any changes in applicable laws or regulations.