In Texas, the commission agreement needs to be in writing and the rate and terms are negotiable between parties. It can be included in the lease or can be a separate commission agreement with the Owner. Most Owners typically will want to pay the "market rate" in order not to loose the prospective tenant to another Owner, but some Owners will offer above "market rates" as an incentive for Tenant Rep Brokers to bring them Prospects. Some Tenant Rep Brokers will except a higher percentage, say 6%-10% if the lease commission is paid out over a set term, as a way the get the deal done.
Jun 26, 2014