where can i get broker commission agreement?

Question

Need to setup an agreement for tenant's broker for commission to be paid in installments as tenant makes good on rent, any good standard agreements i could use?

thanks

Joel Owens · Answer

The broker will probably negotiate a smaller lump sum upfront and then ongoing payments.

It's a dance between divided interests for both sides to meet in the middle.

Martin Z. · Answer

Wayne, commercial (non-residential), commission range in 6 figures.

@John Marion    for example, on 10 year lease, I'd want to pay tenant's broker their commission as the monthly rent comes in from the tenant they're representing. And in case for whatever reason the tenant abandons in the first 3 or 4 months of their lease, the broker doesn't get further payments. The agreement form would not be to "negotiate," just outline the payment plan. As @Joel Owens mentioned, this payment plan of commission would be to serve the mom and pop type tenants, that lease big.

John Marion · Answer

You have to negotiate the terms with the broker who will then use their form and fill in the agreed upon terms. Using your own agreement form doesn't put you in a better position to negotiate the terms you want with the broker. I think I'm not really understanding what it is that you are trying to do.

Joel Owens · Answer

Wayne the poster is in the commercial r.e forum so I am assuming by tenant he is talking commercial leasing.

You could just use the tenants broker form and strike out the parts you do not like and add an addendum in of what you want.

It's typical for the broker/agent on leases to collect more up front on commercial. The reason is if the tenant goes bad or files BK the chances of the broker getting a residual is slim to none. This is the exact reason the owner leasing out wants most of the money paid only if the commercial tenant performs. National tenants with guarantees across many properties is not as risky for a broker/agent of getting paid but mom and pop is.

No legal advice.

Wayne Brooks · Answer

I can't imagine an agent would take the minuscule commission from a rental, in payments over the term of the rental, for a residential unit.

Martin Z. · Answer

their form wouldn't coincide with our terms, so want to make one myself

John Marion · Answer

The broker will provide that form.