Brokerage Agreement: Exclusive Right to Sell Listing Agreement (Commercial Real Estate Sale)

by Practical Law Real Estate

A Standard Document providing a model exclusive right to sell listing agreement between a commercial property owner and a broker. This listing agreement is drafted with clauses favorable to both parties and can be tailored to meet their specific needs. This Standard Document outlines essential terms including the listing term, purchase price conditions, and the calculation and payment of the broker's commission. It also details the broker's duties related to marketing the property, managing offers, and reporting to the owner. Key provisions address complex issues such as the broker's protection period, named exclusions from the commission, and the roles of cooperating brokers and co-brokers. Furthermore, this Standard Document includes representations and warranties, indemnification obligations, limitation of liability clauses, and specific termination rights for both the owner and the broker, providing a solid framework for the commercial real estate sale process. This Standard Document has integrated notes with important explanations and drafting and negotiating tips for both parties. While brokerage agreements are generally governed by state law, this jurisdictionally neutral template is useful and relevant in every state.