Real Estate Commission Rider
1.Commission. Landlord agrees to pay to the real estate broker named below (Broker) a commission in the amount of [percent] percent of the Base Rent.
2.Payment. The commission will be paid out of each Base Rent payment if and when actually received by Landlord. If Tenant defaults and any rent due Landlord is collected by means of litigation or with the aid of an attorney, Broker will receive a commission out of Landlord’s net recovery in the percentage amount set forth above. Landlord’s net recovery is defined as the amount Landlord eventually collects from Tenant less attorney’s fees, court costs, out-of-pocket expenses, and costs expended to obtain a new tenant for the remainder of Tenant’s term (e.g., broker’s commissions and remodeling and refurbishing costs).
3.Brokers. Landlord represents that it has had no dealings with any real estate broker in connection with the negotiation of this lease except Broker and knows of no other real estate broker entitled to a commission in connection with this lease. Landlord agrees to pay all real estate commissions due in connection with this lease to Broker. Landlord agrees to indemnify and hold harmless Tenant from any liability or claim arising by, through, or on behalf of Landlord, whether meritorious or not, with respect to any real estate broker not named below. Tenant represents that it has had no dealings with any real estate broker in connection with the negotiations of this lease except Broker and knows of no other real estate broker entitled to a commission in connection with this lease. Tenant agrees to indemnify and hold harmless Landlord from any liability or claim arising by, through, or on behalf of Tenant, whether meritorious or not, with respect to any real estate broker not named below.
4.Broker Not Party to Lease. Broker acknowledges that Broker is a party to this lease only for purposes of this Commission Rider and that Landlord and Tenant may modify, assign, or terminate this lease without notice to or the consent of Broker as long as Broker’s commission rights are not affected.
Date: ________________________________.
[Name of landlord]
[Name of tenant]
[Name of broker]