Jan 23, 2012
Listing/Commission Agreements - Do You Know What You need to Know? 8 Essential Points
By: Darrell Gold
Whether you are listing a commercial property for sale or listing premises in it for lease, the listing agreement is a material document with significant implications on the broker, the owner (and property manager as agent of the owner). On a commercial deal, fees can range from thousands of dollars to millions of dollars so it’s a document that warrants just as much attention as any other material agreement to be entered into.
Owners, landlords, and managers, will appreciate relative certainty in the agreement especially on the material issues at the outset with a view to keeping them out of court or at least enhancing the chance of success.
As with all commercial agreements, it boils down to the relative leverage between the parties involved. Assuming a degree of sophistication to the readers of “The Legal Corner”, I will hi-light some of the essential terms that should be considered when entering a listing agreement. Some are simple to attend to upfront and are not that contentious (at least not initially if properly addressed). However others will require negotiation to arrive at a balanced agreement that rewards the broker for a successful achievement: and ensures the owner/manager receives relative certainty as to the services, the fees, the timing of payment and the expiration or termination of all the obligations.
For the complete article view the document below.