September 13, 2023
A buyer/tenant representation agreement is an important contract, particularly if you are a buyer searching for commercial properties in your local area. Commercial buyer/tenant representation is critical if you invest in local commercial property, as a qualified commercial real estate brokerage will best represent your needs and advocate for you throughout the transaction process.
But what should a buyer/tenant representation agreement include? Here are three crucial things to consider in an exclusive buyer/tenant representation agreement.
The focal point of any buyer/tenant representation agreement is the outline of the service(s). This agreement provides detailed information about what you can expect from your buyer’s representative, including the services they will provide and the negotiating they plan to do on your behalf. In addition, a buyer representation agreement should detail both the client’s and the agent’s expectations, including the requirement that you work exclusively with your buyer’s representative during the search for commercial properties. By having an in-depth understanding of the expectations of both parties involved, you can move forward with confidence and clarity as you look for the best available commercial properties in your area.
The buyer/tenant representation agreement will include details about the commission rate that the agent expects to be paid. However, it’s worth noting that the buyer is usually not responsible for those commission fees. The seller of the commercial property typically pays the commission fees for both the listing agent as well as the buyer’s agent. However, it is necessary to have a buyer/tenant representation agreement in place that details their commission rate and how to handle compensation in the event the seller does not pay the buyer’s agent’s commission. This agreement will spell out the fiduciary obligations of your buyer’s agent and will help position you to best achieve your commercial real estate investment objectives.
A buyer/tenant representation agreement is an exclusive contract that exists between you – as the buyer or tenant – and the representative commercial real estate brokerage who will serve as your agent. It is worth noting that this agreement will last for a specific amount of time and that terms must be listed in the agreement. By identifying the length of the terms of the contract, you are obligated to work exclusively with that representative for the specified amount of time.
Once you have found a commercial real estate brokerage you want to work with during your search for commercial properties, you should thoroughly review the buyer/tenant representation agreement. An experienced and qualified firm will generate an agreement that is fair and favorable to both parties. This contract allows you to become a valued client and gives you the support and reinforcement you need during your commercial property search.
For more information about what is included in our commercial buyer/tenant representation agreement, contact RakowGroup today.
August 31, 2023
Purchasing the perfect commercial property is the first step toward growing your portfolio and generating a return on your real estate investment. Whether you have purchased an industrial warehouse designed for a large business or a retail development fit for multiple storefronts, the next step is finding suitable tenants. A good tenant will pay their […]
August 31, 2023
Diving into the world of real estate investment can be a thrilling experience – but it’s important to approach your new venture with reliable information and accurate data. Understanding the difference between commercial and residential real estate will allow you to make the best decisions for your portfolio and develop an investment strategy that yields […]
November 18, 2022
Those who are in the market to rent a commercial office space are often searching for a property that includes a wide set of criteria. The type of office space you rent may vary based on the business you intend to operate out of that space. However, when you do find that perfect commercial space, […]
© 2019 Rakow Commercial Realty Group | 10 New King Street - Suite 212 White Plains, NY 10604 Phone: (914) 433-0100 | 6 Landmark Square - 4th Floor Stamford, CT 06901 Phone: 203-359-5703 | 50 Tice Blvd Suite# 340 - Woodcliff Lake, NJ 07677 Phone: 201-416-6112
Digital Solutions by Zero Gravity Marketing