Commercial Real Estate Co-Broker Agreement
Based on subsequent written notifications, Monopoly Realty and World Business Brokers signed a co-brokerage agreement for the sale of the property. The short written agreement stipulated that the world`s business brokers received half of all commissions Monopoly Realty earned by selling the relevant real estate. As the only consideration for the deal, the world`s business brokers provided information to Monopoly Realty that the property was for sale. However, the court found that the contract between Monopoly Realty and World Business Brokers, although a “bad deal” for Monopoly Realty, was binding and enforceable for all parties. It also found that the co-mediation agreement had been supported by an appropriate consideration (information that the property was for sale) and could not have been terminated by Monopoly Realty after receiving the information. The Tribunal found that World Business Brokers had fulfilled its obligations under the terms of the contract and that the contract was therefore enforceable. Monopoly Realty and World Business Brokers were both experienced real estate brokers. At one point, World`s business brokers discovered commercial real estate for sale and contacted Monopoly Realty with this information. It was not a list of world business brokers; there may be nothing more than a situation where the sale of owners is cancelled. (The Tribunal`s decision is silent on this aspect of the case.) In this case, a real estate agent, Monopoly Realty, Inc., issued a final court judgment in a contract action that awarded 50 percent to a Monopoly Realty real estate commission. The case had an interesting twist: it is not apparent from the Florida court case that any of the parties did have a list authorizing it to put the property up for sale.
Nothing in the agreement imposed a duty on the world`s business brokers to have a listing or to respond in the affirmative to an action. After providing the information that the property was for sale, World Business Brokers fulfilled the conditions of the particular business agreement. The parties were then bound by their contract. An excellent partner for residential or commercial brokers. Many might think that the court`s decision is too inflexible by applying a strict construction approach in the interpretation of contracts and ignoring the reality of co-brokerage agreements, i.e. that there is an implication, that each party would put its own weight. In reversing this involvement, the court left the agreement they had reached, verîtes and everything. Complex commercial real estate transactions may need an experienced real estate agent to devote time and effort to sales. If a cooperating broker is involved, the co-brokerage rules must be clear from the start. While he may say the obvious, take the time to reduce, write down everything that is expected to be part of a co-brokerage agreement if you agree to share a commission with another agent. In the event of a dispute, a court cannot read unspoken language. Prime Manhattan Realty is pleased to make our knowledge, professionalism and resources available to other real estate and commercial agents as part of a co-brokerage agreement.
We have decades of experience and access to any commercial and commercial real estate space in New York, making us an ideal partner to develop your rental and rental relationships. Our relentless, customer-centric approach has made us one of New York`s most successful boutique real estate brokers. We know all facets of the Manhattan market, from small and medium-sized offices to large residential blocks, and we are a great choice to guarantee both a satisfied customer and a commission in your pocket.