What do leading agents do with commission when it falls through
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[{"id": "fq4bn7s", "text": "No. You swing in like a white knight and get the sublease listing.", "replies": [], "depth": 1}, {"id": "fq4c298", "text": "No.  I know an agent sold a property and new owner wanted to sell it he got paid twice within a few months. One agent told me one home he sold 5 times in a decade and gave me the sold prices. In this case he got paid 7 times as expert of that home.", "replies": [], "depth": 1}, {"id": "fq4p6h2", "text": "No, you were paid for finding the tenant. If that were the case where do you draw the line?  If some one nails on rear 14/15 do you give 1/15 of your commission back 14 years after the rent commencement?", "replies": [], "depth": 1}, {"id": "fq54jkd", "text": "No, your commission is a built in investment/risk by those who pay it, just like tenant improvements they build into the deal (in my case, office owners).  \n\nNot part of your question, but related: if a tenant has a termination option, it is important to negotiate ON THE FRONT END OF EVERY LEASE that the tenant pays back to LL the unamortized (use an aggressive interst rate IN THE LEASE) of your commission in order to terminate.\n\nThat way you're all clear, and can go get you that sublease/buyout commission/future listing.", "replies": [{"id": "fq5ybl2", "text": "Thanks. What if you put a lot of pressure on the landlord to sign a deal with this tenant?", "replies": [{"id": "fq69350", "text": "This question is fraught with issues.  Expand on the situation, please.", "replies": [{"id": "fq6jidk", "text": "Say... Hypothetically a leasing agent brought a few tenants forward. The landlord didn't like them but the agent pushed one  tenant very hard. Talked up how great they were. Talked about how this was the best fit for the space and they had excellent sales figures in other stores. Talked about how it was so frustrating that the landlord kept rejecting tenant proposals. Talked about how they just need to fill the space.\n\nThen fast forward a year. The tenant is bankrupt, they did a moonlight flip. There's nothing left. Property tax is owed. Etc.", "replies": [{"id": "fq6vfvn", "text": "Sounds like this broker presented a number of options to the LL, who expressed interest in backfilling space.  Said agent presented sales figures, credit (assumedly), and guarantees/deposits (assumedly), and the Landlord made a decision based on the information provided.  LL signs the lease and enjoys the benefits of rent/profits over (hopefully) a long period of time, or signs a deal that adds enough value to the building wherein ownership can sell for a profit.  If the opposite happened, and the Tenant went bananas, became the next google, leased in the building for 33 years, Broker wouldn't receive this upside, right(ignoring obvious variable under this oversimplified case)?  Same for the downside.  As long as Broker didn't have any fiduciary relationship with the Tenant that causes conflict, at the end of the day it's on the LL to make the decision and sign the lease.  If he/she is asking for a LC refund, refer them back to your listing agreement, which should cover all this, and fire LL's ass.", "replies": [{"id": "fq6wgpd", "text": "In this relationship the leasing agent gets a renewal commission and manages the property as well.", "replies": [{"id": "fq71u2n", "text": "Owner has final say, if s/he does not like how his/her manager is doing business, then fire them. \n\nSometimes you find this out during expensive decisions.", "replies": [], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fqd5faa", "text": "Nope. Was the LL going to pay you in 15 yrs on the renewal?", "replies": [{"id": "fqdqudh", "text": "Yes", "replies": [{"id": "fqds9io", "text": "I saw the other post about mgmt and getting paid on renewals.\n\nNeed more context, if you're being asked by the LL for a return of commission in order to keep the mgmt, that's a sticky situation.\n\nWhat's the net commission worth vs NET profit on the mgmt plus headache of what sounds to be a pita LL.", "replies": [{"id": "fqdsnox", "text": "It's a large shopping center. Commission is 5% of potential rent for the 15 year deal. Management is large as it's a large regional center", "replies": [{"id": "fqdu8tq", "text": "It's a complicated situation, the relationship long term is valuable.\n\nIn principle I'm against returning the commission, and a pro-rated amount sets a dangerous prescient. To keep the relationship long term you're going to have to sort out with the LL what the protocol is for this and moving forward.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}]