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.
Keywords: Massachusetts Lease Provisions, Brokers, Real Estate, Residential Lease, Commercial Lease, Brokerage Fees, Commission, Disclosure, Written Agreement 1. Massachusetts Lease Provisions Relating to Brokers: A Detailed Overview In Massachusetts, lease provisions relating to brokers play a crucial role in both residential and commercial real estate transactions. These provisions govern the rights, obligations, and compensation-related matters for brokers involved in the lease process. Let us delve into the key aspects and various types of Massachusetts lease provisions relating to brokers. 2. Residential Lease Provisions Relating to Brokers in Massachusetts When it comes to residential leases, landlords may engage brokers to help find tenants. In Massachusetts, it is common for brokers to charge a brokerage fee or commission for their services. However, under the lease provisions, landlords must clearly disclose whether tenants or landlords will be responsible for paying the brokerage fee. Such disclosure enables tenants to make informed decisions regarding the financial implications of utilizing broker services. 3. Commercial Lease Provisions Relating to Brokers in Massachusetts In the commercial real estate market, brokers play a vital role in facilitating lease agreements between landlords and businesses. Massachusetts lease provisions relating to brokers in commercial leases primarily revolve around commission arrangements and written agreements. Brokers typically negotiate their commission directly with the landlord or the landlord's representative and have their compensation detailed in a written agreement. This agreement delineates the scope of services, commission rates, and any exclusivity clauses that may exist. 4. Brokerage Fee and Commission Structure in Massachusetts Leases Brokers in Massachusetts rely on either flat fees or commissions based on a percentage of the lease value for their compensation. While residential and commercial lease provisions often differ, similar principles govern broker compensation. The lease agreement should explicitly outline the amount or percentage of the commission, how it will be calculated, and when it becomes payable. 5. Mandatory Written Agreements for Brokerage Services To ensure transparency and avoid any misunderstandings, Massachusetts lease provisions require written agreements between brokers and their clients, be it landlords or tenants. These agreements should detail the services provided, the duration of the agreement, the commission structure, and any exclusivity clauses. It is crucial for both parties to carefully review and fully understand these agreements before signing. This written record serves as protection for both brokers and clients in case of disputes or conflicts. 6. Broker Disclosure Requirements in Massachusetts Lease Provisions Massachusetts also emphasizes the importance of broker disclosure in lease transactions. Brokers are obligated to disclose any conflicts of interest, relationships, or affiliations that might impact their impartiality. This transparency ensures that all parties involved in a lease agreement receive fair and unbiased representation throughout the negotiation process. In conclusion, Massachusetts lease provisions relating to brokers encompass multiple critical aspects of real estate transactions. Whether it is residential or commercial leases, the state mandates clear disclosure, written agreements, and transparent commission structures to protect the rights and interests of all parties involved. Understanding and adhering to these regulations contributes to a smooth and legally compliant leasing process in the state of Massachusetts.
