A 6/yr lease with a 6 yr Opt. Does Broker get paid on Option if exersized?

My greement says "7% for first 3 years and 3% for each additional year."
In Leasing Property - Asked by Lisa T. - Mar 2, 2011
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Answer(s)

Michael J.
Broker/Agent
Peachtree City, GA

Hopefully the lease stated you would be paid for any option periods. What does the document say? If it is not stated you will be at the mercy of the landlord. Hope that helps.

Mar 2, 2011
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Lisa T.
Broker/Agent
Levittown, NY

Michael, Unfortunately it is a little vague. It just states "additional years." He will pay me for the first term at execution. He is a good client. I dont want to allianate him.
Just curious if there was a standard. I might have to change my agreement.
Thanks for the help.

Mar 2, 2011
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Melinda G.
Property/Asset Manager
Mashpee, MA

We usually agree to pay on an option if the rents are stipulated in the lease. If it is a FMV option, no commission should be due.

Mar 2, 2011
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Rob B.
Chandler, AZ

Dave.... This entirely negotiable and as you said, "he is a good client". I would likely forego the additional payment for option years if he asked me to remove that clause from the lease agreement. I like to utilize AIR Commercial Leasing forms, as they have the extra years clause as a preprinted part of the lease. This then requires the Landlord to negotiate the removal of this clause if he or she believes he or she has a justifiable position to present to you for doing so. Good luck Dave.... Rob Baird, CA RE License #544165 (One of the oldest, active licenses in CA) 951 515-5855 Email: rob@capratecommercial.com

Mar 2, 2011
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Lisa T.
Broker/Agent
Levittown, NY

Rob,
I just checked out the Airco website, what a great resource!
Thanks for the help.
Dave

Mar 3, 2011
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