A real estate commission clause outlines the conditions under which a real estate agent or broker is compensated for their services in facilitating the sale, purchase, or lease of a property. This clause typically specifies the percentage of the transaction value or flat fee to be paid upon successful completion of the transaction.
Section 8.5 Disposition Fee on Sale of Property. The Corporation may pay the Advisor a real estate commission upon the Sale of one or more Properties, in an amount equal to one-half of the Competitive Real Estate Commission paid but not to exceed 3% of the sales price of such Property or Properties. Payment of such fee may be made only if the Advisor provides a substantial amount of services in connection with the Sale of such Property or Properties, as determined by a majority of the Independent Directors. In addition, the amount paid when added to all other real estate commissions paid to unaffiliated parties in connection with such Sale shall not exceed the lesser of the Competitive Real Estate Commission or an amount equal to 6% of the sales price of such Property or Properties.
No Real Estate Commission(s) disclosed on final Closing Disclosure for Purchase transaction (12 CFR 1026.38(g)(4))
“Competitive Real Estate Commission” means a real estate or brokerage commission paid (or, if no commission is paid, the amount that customarily would be paid) for the purchase or sale of a Property that is reasonable, customary and competitive in light of the size, type and location of the Property.
Finally, the Company will reimburse you for the cost of real estate commission fees you may incur in selling your current residence in Florida in the amount of up to $40,000, subject to your submission of evidence of relocation expenses in accordance with the Company’s usual record-keeping requirements. The real estate commission fee reimbursement shall be payable 75% in cash and 25% in RSUs. The RSUs will vest quarterly over a 12-month period from the date of grant, with ¼ of the RSUs vesting each quarter. The number of RSUs to be issued to you for the real estate commission fee reimbursement will be based on the fair market value of the Company’s common stock on the date of grant, as provided in the Plan, and shall be governed in all respects by the terms of the Plan, the grant notices, and the RSU agreements.
•Home Sale Assistance. Reimbursement of eligible normal and customary home sale closing costs will be provided after associate has independently sold the home to an outside buyer. Normal and Customary reimbursable expenses include real estate commission fees not to exceed 6%
Real estate commission is the fee paid to real estate agents for their services in facilitating the sale or purchase of property. It is typically calculated as a percentage of the property’s selling price and serves as compensation for the agent’s work, time, and expertise in managing the transaction process. Real estate commissions are usually negotiated between the property owner and the real estate agent at the beginning of the relationship.
You should consider using a real estate commission when engaging the services of a real estate agent to help you buy or sell a property. Using a commission-based structure incentivizes agents to achieve the best possible outcome for their clients—securing a higher price for sellers, or finding an ideal property for buyers. Engage a real estate agent and agree on a commission structure when:
Writing a real estate commission typically involves specifying the agreed-upon commission rate in terms of a percentage of the final selling price. It should be clearly documented in the contract with the real estate agent, reflecting the terms and conditions agreed upon. Here’s a basic example of how to express the commission in writing:
The seller agrees to pay the agent a commission of 6% of the final selling price upon successful completion of the transaction.
This clause can be adjusted based on negotiations and specific agreements with the agent, including variations such as a fixed fee.
Real estate commission is typically addressed within the following types of contracts:
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Dive deeper into the world of clauses and learn more about these other clauses that are used in real contracts.
The reassignment clause in a contract outlines the conditions under which an employee may be transferred or reassigned to a different position, department, or geographic location within an organization. It typically stipulates the process for such changes, including any notice requirements and the employee's rights or obligations regarding the reassignment.
The "Recitals Incorporated" clause stipulates that the recitals, or preliminary statements, in a contract are included as integral parts of the agreement and can be used to interpret the intentions and context of the contract. This ensures that the background information and purposes outlined in the recitals hold legal significance and can influence how the contract is executed and understood.
Recitals, often found at the beginning of a contract, provide a background or context for the agreement, outlining the reasons and purpose behind its formation. These introductory statements help clarify the intent of the parties involved but are not typically enforceable provisions within the contract itself.
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