Commercial Webinar Series1 hour presentation

Commercial Commission Agreements presented by

Rick Albers

Questions will be answered at the end.

For technical questions, call 800-263-6317.

Commercial Webinar Series

Commercial Commission Agreements

Presented by

Rick Albers Kuperman Orr & Albers, P.C.1501 S. MoPac, Suite 325

Austin, Texas 78746ralbers@koalaw.com

July 25, 2013

Topics

• Requirements to Earn a Commission

• Basic Commission Forms

• Legal Issues in Completing Forms

• Supplemental Commission Forms

• Commercial Broker’s Lien

Requirements to Earn a Commission

• Hold an active license

• Be a Broker or affiliated with a Broker

• Give statutory notice to get a title policy or have an abstract of title examined by an attorney

• Written agreement to paya commission

Requirements to Earn a Commission

• Written agreement to pay a commission

Signed by the party obligated to pay the commission

Commission amount is stated or contains a formula to calculate the commission

Legally sufficient property description

Termination date

Basic Commission Forms

Owner side - Listing Agreements• Commercial Real Estate Listing Agreement

- Exclusive Right to Sell (TAR 1301)• Commercial Real Estate Listing Agreement

- Exclusive Right to Lease (TAR 1302)• Commercial Real Estate Listing Agreement

- Exclusive Right to Sublease (TAR 1303)

Basic Commission Forms

Other side - Representation Agreement

• Commercial Buyer/Tenant Representation Agreement (TAR 1502)

Legal Issues

Commercial Real Estate

Listing Agreements

• Exclusive Right to Sell (TAR 1301)

• Exclusive Right to Lease (TAR 1302)

• Exclusive Right to Sublease (TAR 1303)

Legal Issues

Commercial Buyer/Tenant

Representation Agreement

• Buyer/Tenant Representation Agreement (TAR 1502)

Supplemental Commission Forms

• Condominium Addendum to Listing (TAR 1401)

• Named Exclusions Addendum to Listing (TAR 1402)

• Exclusive Agency Addendum to Listing (TAR 1403)

• Amendment to Listing (TAR 1404)

• Information About On-Site Sewer Facility (TAR 1407)

• Commercial Property Condition Statement(TAR 1408)

Supplemental Commission Forms

• Intermediary Relationship Notification (TAR 1409)

• Termination of Listing (TAR 1410)

• Keybox Authorization by Tenant (TAR 1411)

• Seller's Authorization to Release and Advertise Certain Information (TAR 1412)

• Request for Mortgage Information (TAR 1413)

• Information About Special Flood HazardAreas (TAR 1414)

Supplemental Commission Forms

• Termination of Buyer/Tenant Representation Agreement (TAR 1503)

• Notice from Buyer's Agent to Seller (TAR 1504)

• Amendment to Buyer/Tenant Representation Agreement (TAR 1505)

• General Information and Notice to a Buyer(TAR 1506)

Commercial Broker’s Lien(Chapter 62 of the Texas Property Code)

• There must be a valid obligation to pay a commission.

• Notice of right to claim the Commercial Broker's Lien must be disclosed in the commission agreement.

• Lien affidavit must be timely recorded and indexed after the commission is earned.

• Deadline to record the Commercial Broker's Lien Affidavit is different if commission owed by Seller, Buyer, Landlord or Tenant.

Forms Revisions

• TAR Commercial Forms Committee• Meeting beginning in August• Suggestions and Comments are encouraged

Forms Revisions

• TAR Commercial Forms Committee• Meeting beginning in August• Suggestions and Comments are encouraged• Official Collector of comments is:

Kinski Moss TAR Senior Associate Counsel

kmoss@texasrealtors.com

Questions ?• NOW –

Type your questions now.

• LATER –

TAR Legal Hotline 512-480-8200

Rick Albersralbers@koalaw.com

Conclusion

• Thanks for your participation in the TAR quarterly Commercial webinars!

• Next Webinar:October 24, 20131031 Exchanges Presented by Teresa Person

• Give us your feedback!