I have negotiated leases for a development that might not get built. Am I still entitled to commissions?

I am the inside broker for a developer and have negotiated and finalized multiple leases with both national and local tenants. Due to the credit markets some of these developments might not come to fruition. Am I still entitled to the lease commissions if the development does not get built?
In General Area - Asked by brian c. - Nov 5, 2009
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Answer(s)

Gregory G.
Broker/Agent
San Francisco, CA

Please don't spam the board. No one can answer this question without more detail.
Gregory Garver - Commercial Real Estate Broker
Broker License# 01716531
(415)225-9894
gregory.garver@gmail.com

Nov 6, 2009
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C. Talmadge B.
Owner/Investor
Kearney, MO

Read your agreement(s). You'll get only what is in writing on a contract.

Nov 6, 2009
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Jack H.
Owner/Investor
Coeur d'Alene, ID

As a landlord, I only pay commissions on rents collected. Gregory & C. are both right. You get what's in your contract. Maybe a signing bonus, but that may be negated by the non-performance of the project.

Nov 6, 2009
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ahmad s.
Broker/Agent
Muara enim, SS

if I had asked for agreement before offering something to help, because sometimes people like to forget our services and when we are out of work and costs, .. I ask forgive me, because once you hit "SPAM" because I do not understand and just learn to open the internet, once again I beg you forgive me.
hello friends,
budi.broker @ gmail.com,
budi_broker@hotmail.com +62817431200

Nov 6, 2009
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Damon D.
Broker/Agent
Bala Cynwyd, PA

Brian -
Even if there is language in the commission agreement that says you may be due a commission, under this scenario a landlord may try not to pay it. State law will come into play and you might need to fight it out or settle.
Also, how are your payment of commissions structured in the commission agreements? Half at lease execution, half at occupancy?

Nov 6, 2009
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Marty H.
Broker/Agent
Lenexa, KS

You might also want to look at your listing agreement to see what entity agreed to pay commissions. If that entity was created solely for developing this specific project, and the project isn't going forward, you may be faced with trying to collect from an entity that has no liquid assets. If the entity borrowed money to acquire the site, the lender may end up owning the site. Unless you have a personal guarantee, or some other tangible guarantee on your listing agreement, collection may be very difficult.

Nov 8, 2009
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