Real Estate Journal — Shopping Centers — March 28 - April 10, 2014 — 13A
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M ID A TLANTIC
R ETAIL E XPERTS
By Scott Butler, Kaplin|Stewart Negotiating exclusive listing agreements
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be payable in the event of a lease or sale to any existing tenants or occupants of the property, or to an affiliate of an owner of the property. In the event the owner previously engaged a different broker for the property, the owner should be careful to exclude from the listing agreement any transac- tions for which a commission is payable to the prior broker. Scott C. Butler, Esquire, principal of the Real Es- tate, Business & Finance group of Kaplin Stewart in Blue Bell, PA.
ngaging a real estate broker is a vital step in adding value to
rights are protected prior to executing such an agreement. A broker should confirm that the exclusive listing agree- ment complies with the legal requirements of the state in which the property is located. For example, the Pennsylva- nia Real Estate Licensing Act provides that an exclusive list- ing agreement must contain certain provisions, such as the amount of the commission, the duration of the listing period and certain specific disclosure statements. This Act also includes certain restrictions, such as the listing period not
being longer than one (1) year. The terms of the deal be- tween the owner and the bro- ker should also be specifically set forth in the agreement. The parties should consider the following issues: (i) the length of the listing period; (ii) the amount of the commission; (iii) the timing of the payment of the commission; (iv) whether the commission should be paid if a lease or agreement of sale is executed after the expira- tion of the listing period with a party that was found by the broker; (v) who is responsible for the payment of any co-bro-
kerage fees that are payable to any brokers representing a tenant or purchaser; (vi) whether a commission will be payable to the broker for any lease amendments or renewal terms under the applicable leases; (vii) whether a com- mission will be payable in the event of either the sale or lease of the property, or the sale of interests in the owning entity; and (viii) who is responsible for the marketing costs in list- ing the property. In addition, the listing agreement should indicate whether a commission will
commercial real estate through leas- ing or selling a property. S i n c e t h e broker will be required to invest a s i gni f i cant amoun t o f
Scott Butler
time and effort in marketing the property, most brokers require that the owner enter into an exclusive listing agree- ment. This type of agreement provides that the broker will have the exclusive right to list and market the subject property for a certain period of time, called the listing period. In the event a lease or agree- ment of sale is executed during the listing period, regardless of whether the broker was instrumental in the transac- tion, the broker will be entitled to a commission. Due to the payment obligation of the owner and the time and effort incurred by the broker during the listing period, these par- ties should ensure that their Handwerker promoted toVP of The Goldstein Group PARAMUS, NJ — Chuck Lanyard , president of the Goldstein Group announced the promotion of Mark Hand- werker to vice president of the firm. “It is a pleasure to announce the promotion of Mark to vice president of The Goldstein Group,” said Lanyard. “Over the course of Mark’s career, he has become one of NJ’s most respected retail brokers and has successfully completed over 1,000,000 sf of retail transactions.” Mark has completed numer- ous transactions for both landlords and tenants involv- ing both leases and sales of property. He has successfully represented owners such as The Goldenberg Group, LGR Associates, ARC Properties, Eaton Associates, Ethan Al- len Retail, Wick Companies, RAMP Group, BMT Holdings, Diversified Capital Howell II, US Realty and Investment Company.
Committed to Your Goals
The guy on the left spent lots of money to hire a bunch of experts whose ideas never took flight. The guys on the right hardly took notice – they were too busy flying their idea. If they were law firms, which one of these guys would you rather work with? Contact: Scott Butler • sbutler@kaplaw.com 910 Harvest Drive, Blue Bell, PA 19422-0765 • 610.941.2518 • www.kaplaw.com Visit our Construction Blog: www.pennsylvaniaconstructionlawyer.com Other Offices: • Cherry Hill, NJ 856-675-1550 • Philadelphia, PA 215-567-3120 Kaplin Stewart A t t o r n e y s a t Law Total commitment works wonders. Talk to us first.
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