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Updated over 7 years ago,
Agent Commission Structure
Hello all,
I have a question regarding a commercial lease. The lease structure was a "10-year" lease with the option to leave after 5 years if they chose to. The tenant would have to reimburse the landlord for all brokerage fees and attorney fees if they choose to exercise this option. The commission structure was billed for the full 10 years up front.
Is this normal practice in the commercial industry to bill for the full 10 years even though they have the option to leave after 5 years? Or is this a 5 year lease with a 5 year option masked as a 10 year?
Thank you.