The Broker Lease Commission Agreement serves as the foundational document establishing the business relationship between property owners and real estate brokers in leasing transactions within the United States. This agreement is essential when property owners seek professional assistance in securing tenants and want to clearly define commission structures and broker responsibilities. The document addresses crucial elements such as commission rates, payment timing, service scope, and protection periods, while ensuring compliance with federal and state real estate regulations. It's particularly important in commercial and residential leasing where significant commissions are involved and multiple parties may participate in the transaction.
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1. Parties: Identification of the broker and property owner/landlord
2. Background: Context of the agreement and property details
3. Definitions: Key terms used throughout the agreement including commission, lease, property, and other relevant definitions
4. Scope of Services: Details of broker's services and responsibilities in securing tenants and negotiating leases
5. Commission Structure: Commission rates, calculation methods, and payment terms for different lease scenarios
6. Payment Terms: When and how commission payments will be made, including timing and method of payment
7. Term and Termination: Duration of agreement and conditions for termination by either party
8. Representations and Warranties: Statements of fact and promises made by both parties regarding their authority and capabilities
9. Governing Law: Specification of jurisdiction and applicable laws governing the agreement
1. Protection Period: Post-termination period where broker may still earn commission for leads generated during the agreement
2. Co-Broker Arrangements: Terms for sharing commissions with other brokers and cooperation with other real estate professionals
3. Marketing Budget: Allocation and terms for property marketing expenses, including reimbursement provisions
4. Dispute Resolution: Procedures for resolving disputes through mediation or arbitration
5. Indemnification: Terms for mutual indemnification and liability protection
1. Schedule A - Property Details: Detailed description of the property or properties subject to the agreement
2. Schedule B - Commission Rate Schedule: Detailed breakdown of commission rates for different lease scenarios and terms
3. Schedule C - Broker's Services: Comprehensive list of services to be provided by the broker
4. Schedule D - Marketing Plan: Detailed marketing strategy, timeline, and budget allocation if applicable
5. Schedule E - Excluded Prospects: List of any prospective tenants excluded from the commission agreement
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