Commercial Webinar Series 1 hour presentation Commercial Commission Agreements presented by Rick Albers Questions will be answered at the end. For technical questions, call

Commercial Webinar Series Commercial Commission Agreements Presented by Rick Albers Kuperman Orr & Albers, P.C S. MoPac, Suite 325 Austin, Texas July 23, 2015

Topics Requirements to Earn a Commission Basic Commission Forms Legal Issues in Completing Forms Supplemental Commission Forms Commercial Broker’s Lien

TREC vs TAR TREC –Texas Real Estate Commission – licensing agency (governmental) TAR – Texas Association of Realtors ® – professional trade organization provides services to it members attempts to influence TREC’s rules and regulations 4

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 pay a 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)

Basic Commission Forms Registration Agreements Commercial Registration Agreement Between Broker and Owner (TAR 2403) Commercial Registration Agreement Between Brokers (TAR 2404)

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)

LOT 4-7 * LESS 9.95FT BROZ ADDN ABS 29 SUR 58 APPLEGATE J ACR 0.023

2.675 Acres out of Outlot 16 and 17, Division D of the Government Outlots of the City of Austin, Travis County, Texas

Find the chart at: For Texas REALTORS ® Member Resources Texas REALTOR ® Magazine Search the Texas REALTOR ® archives (bottom of page) Enter “working both sides” (June 2013)

Legal Issues Commercial Buyer/Tenant Representation Agreement Buyer/Tenant Representation Agreement (TAR 1502)

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Legal Issues Commercial Registration Agreements Commercial Registration Agreement Between Broker and Owner (TAR 2403)

Legal Issues Commercial Registration Agreements Commercial Registration Agreement Between Brokers (TAR 2404)

Supplemental Commission Forms Condominium Addendum to Listing (TAR 1401)

Supplemental Commission Forms Condominium Addendum to Listing (TAR 1401) Named Exclusions Addendum to Listing (TAR 1402)

Supplemental Commission Forms Condominium Addendum to Listing (TAR 1401) Named Exclusions Addendum to Listing (TAR 1402) Exclusive Agency Addendum to Listing (TAR 1403)

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)

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) Commercial Property Condition Statement (TAR 1408)

Supplemental Commission Forms Intermediary Relationship Notification (TAR 1409)

Supplemental Commission Forms Intermediary Relationship Notification (TAR 1409) Termination of Listing (TAR 1410)

Supplemental Commission Forms Intermediary Relationship Notification (TAR 1409) Termination of Listing (TAR 1410) Seller's Authorization to Release and Advertise Certain Information (TAR 1412)

Supplemental Commission Forms Termination of Buyer/Tenant Representation Agreement (TAR 1503)

Supplemental Commission Forms Termination of Buyer/Tenant Representation Agreement (TAR 1503) Notice from Buyer's Agent to Seller (TAR 1504)

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)

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.

Commercial Broker’s Lien Deadline to Record Different for each type of payer: –Seller: prior to conveyance by Seller –Buyer: after Buyer acquires but before Buyer sells –Landlord: earlier of: (i) 91 days after commission become payable, (ii) conveyance of the property –Tenant: 91 days after commission becomes payable

Commercial Broker’s Lien Broker Liens & Leases Lien is waived if the commission agreement is contained in the Lease Lien not waived if commission agreement is not contained in the Lease

Questions ? NOW – Type your questions now. LATER – TAR Legal Hotline Rick Albers

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