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.
Tennessee Lease Provisions Relating to Brokers: A Comprehensive Overview In the state of Tennessee, lease provisions relating to brokers play a vital role in facilitating smooth real estate transactions. These provisions regulate the relationship between landlords, tenants, and brokers, ensuring clarity, protection, and fair dealings for all parties involved. Here, we delve into the various types of Tennessee lease provisions relating to brokers, shedding light on their significance and key features. 1. Tennessee Lease Agreement: The foundation of any lease transaction, a Tennessee Lease Agreement typically contains specific provisions related to brokers. These provisions outline the role of brokers in assisting landlords or tenants, their compensation, and any limitations or obligations they may have. 2. Exclusive Listing Agreement: This type of provision grants exclusive rights to one broker to lease a particular property on behalf of the landlord. In such cases, the broker becomes the sole representative of the landlord, responsible for marketing, finding prospective tenants, and negotiating lease terms. This provision ensures that the landlord receives dedicated service from the chosen broker. 3. Non-Exclusive Listing Agreement: In contrast to an exclusive listing agreement, non-exclusive listing provisions allow landlords to engage multiple brokers simultaneously to secure tenants for their property. This arrangement allows for a wider range of marketing channels and increased exposure to potential tenants. However, the landlord is only obligated to compensate the broker who successfully procures a tenant. 4. Dual Agency: Tennessee lease provisions may also address dual agency, wherein a broker represents both the landlord and the tenant simultaneously. Dual agency presents a potential conflict of interest, as the broker owes fiduciary duties to both parties. It is essential for brokers to disclose any dual agency representation and obtain the informed consent of both parties involved. Restrictions and requirements for dual agency may be specified in the lease provisions. 5. Compensation: Tennessee lease provisions detail the compensation structure for brokers involved in lease transactions. Typically, brokers are entitled to a commission or fee that is a percentage of the total lease value. Lease provisions often specify when and how the broker should be compensated, including any conditions for payment. 6. Code of Ethics: Lease provisions in Tennessee may incorporate the adherence to a certain code of ethics or professional standards by brokers. These codes often require brokers to act with honesty, integrity, and in the best interest of their clients. Failure to comply with these ethical standards may result in penalties or other consequences. It is vital for landlords, tenants, and brokers in Tennessee to carefully review and understand the lease provisions relating to brokers before entering into any lease agreements. Engaging legal counsel or consulting with knowledgeable real estate professionals can provide valuable guidance in navigating these provisions successfully. By adhering to the established lease provisions, parties can ensure a fair and transparent leasing process while minimizing potential conflicts or misunderstandings.
