This office lease provision states that the landlord and tenant each warrant and represent to the other party that there was no broker, finder or similar person, other than those listed, entitled to a commission, fee or other compensation, instrumental in consummating the lease. It also states that no conversations or prior negotiations were had by the landlord or tenant, respectively, or anyone acting on behalf of the landlord or the tenant, respectively, with any broker, finder or similar person, other than those listed, concerning the renting of the demised premises.
South Dakota Lease Provisions Relating to Brokers: A Comprehensive Guide Introduction: When entering into a leasing agreement in South Dakota, it is crucial to understand the lease provisions that relate to brokers. Brokers play a pivotal role in the leasing process, representing either the lessor or the lessee. This detailed description aims to provide a comprehensive overview of South Dakota lease provisions relating to brokers, including various types and their significance. 1. Exclusive Brokerage: The exclusive brokerage agreement is one type of lease provision where a broker is exclusively designated to represent either the lessor or the lessee. This provision prevents other brokers from participating in the transaction and ensures that only the designated broker has the authority to negotiate and secure the lease. 2. Dual Agency: In South Dakota, dual agency occurs when a broker represents both the lessor and the lessee in a leasing transaction. While legal, dual agency requires full disclosure to all parties involved, and the broker must adhere to a high standard of fiduciary duty to both sides. Proper consent and acknowledgment must be obtained from all parties. 3. Tenant Representation: Tenant representation is a specialized type of lease provision where a broker exclusively represents the interests of the lessee throughout the leasing process. This provision ensures that the lessee receives dedicated assistance in negotiation, lease review, and finding suitable properties that meet their specific requirements. 4. Subagency: Subagency occurs when a broker represents the lessor, but works in collaboration with other brokers who represent potential lessees. These cooperating brokers act as subagents to the lessor's broker, increasing the exposure of the property to potential lessees and facilitating the transaction. 5. Commissions: Lease provisions relating to broker commissions are essential to establish the compensation structure for brokers involved in the leasing process. These provisions typically outline the agreed-upon commission percentage, the party responsible for paying the commission (lessor or lessee), and the specific conditions for commission payment. 6. Duties and Responsibilities: South Dakota lease provisions also outline the duties and responsibilities of brokers. These provisions may include requirements for brokers to engage in due diligence, maintain confidentiality, disclose any material facts or conflicts of interest, and act in the best interests of their clients. Conclusion: Understanding South Dakota lease provisions relating to brokers is paramount when engaging in a leasing agreement. Different types of provisions such as exclusive brokerage, dual agency, tenant representation, subagency, and specific clauses related to commissions, duties, and responsibilities exist within these provisions. By familiarizing yourself with these provisions, you can ensure a smooth leasing process while safeguarding your rights and interests.
