Exclusive Tenant Representation Agreement
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The brokerage contract will likely also include a “tail” at the end of the term. The “tail” is a period during which the broker or brokerage firm receives a payment during the term of the contract for the broker`s negotiations with the lessors. If the tail cannot be removed, it must be cut tightly. The tenant should also not assume any responsibility for brokerage fees. The brokerage contract should expressly state that the client does not owe any fees, commissions or expenses and that these fees are the responsibility of the owner. However, the tenant should require the broker to disclose its commission agreement with the lessor and reserves the right to review the commission agreement. Once the list is established, the tenant should have the right to authorize changes to the brokerage team. If someone from the team or large brokerage firm also represents the owner, the brokerage firm should be required to disclose such a presentation and maintain a tenant-acceptable system that creates a wall between brokerage teams. The tenant should understand what this system is to determine acceptance and the risk of conflicts of interest. In order to continue to protect the tenant, the brokerage contract should provide for the broker to compensate the tenant and limit the damage suffered by the tenant under the agreement.
Broker`s indemnification for the tenant should apply for (i) all acts and omissions of the broker, (ii) any misrepresentation by the broker, (iii) any breach of the brokerage contract by the broker and (iv) all claims against the tenant by a broker or third party who claims to have traded with or through the broker. . . .
