A commercial real estate listing agreement is a contract between a property owner and a real estate broker establishing the terms under which the broker will be able to list and market the owner’s property. A commercial real estate listing agreement is used when a property owner enters into a working relationship with a broker to sell or lease a commercial property, such as an office building, retail or office space, warehouse or other industrial property, development land, or multi-family investment.
A commercial real estate listing agreement defines the broker’s commission rate and establishes the payment terms the property owner agrees to pay in the event the property is sold or leased during the term of the agreement. Additionally, the commercial real estate listing agreement outlines the specific responsibilities of the broker, including the work they will perform in order to market and advertise the property, and any other services they will provide in connection with the transaction.
A commercial real estate listing agreement must be in writing, identify the property, set a price, establish a specific beginning and ending date of representation, and include signatures of the real estate broker and property owner(s).
One type of arrangement found in the terms of a commercial real estate listing agreement is an exclusivity clause. Under this clause, the broker has the exclusive right to list and market the property for a certain period of time. The property owner cannot work with any other brokers during the term of the agreement without potentially breaching the contract.
A commercial real estate listing agreement is an important tool for property owners looking to sell or lease their commercial properties, as it ensures that they have a dedicated and experienced broker working on their behalf to get the best possible deal.
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For more helpful information check out our other blog posts like this one titled: Commercial Real Estate Agency Relationships Disclosure.
Let one of our knowledgeable listing agents partner with you to find a commercial real estate property perfect for your business needs, and assist you in working through the lease process. Contact Jason Rogers or Craig Byers, at 319-294-3339 today!
