Broker Commission Agreement Template
Representation of the [Tenant.State] and its respective agencies
This real estate agent and/or broker commission agreement, hereinafter referred to as the “Agreement,” is entered into as of this (day) day of (month), (year), also known as the “Effective Date” by and between:
[Tenant.FirstName][Tenant.LastName]/[Tenant.Company]), hereinafter known as the “Tenant,” at the address [Tenant.StreetAddress], [Tenant.City], [Tenant.PostalCode], hereinafter known as the “Property” and ([Broker.FirstName][Broker.LastName]/[Broker.Company], hereinafter known as the “Broker,” and The State of [Owner.State], hereinafter known as the “Owner,” and collectively known as the “Parties.”
In this Agreement, the following provisions are true and correct:
A. The Owner has legal title and/or rights to the property or land located at the Property, located in (county name) County, [Owner.State] on which tract is an (office building/project, home building/project, apartment building/project), which may also be referred to as (name of project), but will still be further described as the “Property.”
Appraisers Parcel Number (if applicable):
B. The Broker has presented the Property space needs of the Tenant to the Owner and will render services in connection with the (purchase or leasing) of Property space to the Tenant.
C. Should a (Purchase or Lease), herein so-called, be consummate, the Owner agrees to pay The State of [Owner.State] a commission in consideration for the services rendered and to be rendered in consummating a (Purchase or Lease) according to the terms and conditions set form in the Agreement.
D. The Owner acknowledges, understands, and agrees that the Broker is serving as the (sole or non-exclusive) representative of the Tenants’ personal or company interests. Similarly, the Owner acknowledges, understands, and agrees that the applicable fee structures and commission rates outlined below have been mutually agreed upon by the Owner, Tenant, and Broker and have been included within the Owner’s proposal for (Purchase or Lease).
NOW, THEREFORE, in accordance with the mutual promises outlined in the Agreement and state laws and for other valuable consideration, the receipt and sufficiency of which the Parties acknowledge, the parties agree to the following terms:
1. AGREEMENT TO COMPENSATE COMMISSION
The owner agrees to pay a commission to the Tenant equal to (written percentage “five percent”) (#)% of the total (Sale or Gross Rentals) to be paid to the Owner (as a one-time Purchase payment or over the term of the Lease).
(For Lease Agreements: If the Lease term runs at a period greater than (#) years, Owner will pay (#)% over the length of the Lease, which shall be paid to the Owner for the period exceeding the (#) month of Gross Rental payments. Should the Tenant or Owner request an expansion, the commission rate shall be equal to (written percentage “five percent”) (#)% of the additional Gross Rental payments added to or above the total Gross Rental payments of the original Lease agreement, if the Tenant and the Broker are involved. Should the Tenant or Owner request a renewal, this shall be at a rate of (written percentage “five percent”) (#)% of the Total Gross Rental payments.)
2. COMMISSION PAYMENT
The commission payment shall be due and payable to the Tenant in (cash, credit, check) in (number of payments) at the time the Agreement is signed with the balance on the earlier to occur on:
The first day the Tenant occupies, either fully or partially, the space of the Property; or,
The commencement of the Agreement’s terms.
If the Tenant or Owner wishes to expand the Property or the Agreement is renewed, the commission for the renewal or expansion will be due and payable to the Tenant in full at the time a renewal or expansion notice covering the renewal or expansion is executed by the Owner and the Tenant, if the Tenant and Broker are involved. The Tenant agrees to compensate the Broker said commission amount based on the amount outlined in a separate Broker’s document between the Tenant and Broker.
3. SUCCESSORS AND ASSIGNS
The right to receive and the obligation to pay any of the commission described in the Agreement shall transfer to their respective successors, assigns, and/or heirs of the Owner or Broker. In the event of a sale or an assignment of the Property, which includes the Tenant's Property, the Owner agrees to secure it from the assignee or purchaser under a new commission agreement, under which the new assignee or owner assumes payment to the Tenant of all commissions payable.
4. TENANT REPRESENTATION
In this Agreement, the Broker (will or will not) represent a Landlord in the (Purchase or Lease) transaction. The Broker will represent (Tenant, Owner, or Tenant and Owner) in said transaction.
5. OWNER DISCLOSURE
The Owner agrees to disclose information regarding the Property to the Tenant and Broker. This includes but is not limited to mechanical, soil, and structural conditions and whether there is or are not any PCB transformers, asbestos, and other toxic materials on the premises.
6. REPRESENTATION AND WARRANTIES
The Parties agree to disclose that they are authorized to enter this Agreement. The obligations and performances of either party may not violate the rights of a third party or any other agreement made between said party and any other organization, business, person, law, or governmental regulation.
7. ENTIRE AGREEMENT
This Agreement contains the entire agreement and comprehension among the Parties at this point with respect to the subject matter in this regard, and supersedes all prior agreements, conditions, understanding, inducements, whether expressed or implied, verbal or written, of any nature concerning the subject matter in this regard. This agreement shall be valid and binding unless another one is made in writing and signed by all parties. This Agreement is binding, and benefits, the successors, assigns, and/or heirs of the Parties.
SIGNATURE AND DATE: The Parties agree to the terms and conditions outlined in this Agreement, shown by their signatures below: