Commercial Real Estate Broker Commission Agreement
A broker who finds a tenant for a business owner is entitled to a commission. The broker wants the agreement to be “exclusive,” which means that the broker receives the commission, regardless of which party brings the tenant. Suppose the negotiated commission rate for a commercial property is 6% and sells for $US 500,000, or $30,000 in commission. The US$30,000 will be given to the listing agent (who represents the owner) if he is the one who bought the buyer. If another commercial real estate agent brought the buyer, the two agents shared the 50/50 commission and each earned $US 15,000 for the deal. Regardless of the type of reference contract used in a commercial real estate transaction, your customers must be informed of the rights and obligations arising from the reference contract. Hughes, 284 minutes. 39, 42, 169 N.W.2d 216, 218 (Minn. 1969); Dostal v. Fore-M, LLC, 2006 WL 1320501 to *2 (Minn.
Ct. App. 2006). In addition, many brokers, especially for commercial real estate leases, have payments that depend on whether or not the tenant occupies the area.. . . .