I am a commercial real estate attorney practicing in Dallas, Texas. I represent clients in a wide range of activities, including retail, office, industrial and long-term ground leases; property management; acquisitions and divestitures; preparation and review of development documents; counseling and formation of business entities such as limited partnerships and limited liability companies; and third-party financing.
LinkedIn: http://www.linkedin.com/pub/5/792/8bb.
Very Helpful! Are there any Texas Cases pertaining to Operating expenses language in a Texas Commercial Lease? Thank you.
By: Dale Harvill on June 28, 2009
at 12:11 am
Excellent blog. I am looking for case law supporting my attempt to collect commission in FL for a buyer who became a tenant and then elected to extend it lease. Originally, we entered into an agreement to show the property to one prospective buyer for a commission of 5% of the sales price. In the event the buyer elected to lease the property we would be paid 5% of the gross lease plus extensions thereof. If the buyer purchased the building during the term of the lease for a period of 10 years, we would be paid 5% of the sales price minus a credit for any lease commissions paid during the same period. Our thinking was that commissions on a $7,000.000 purchase and a 10 yr lease were approximatley the same amount. We were paid on the initial term of 5 yrs but when the landlord was forced into a newe state required (quasi state tenant) invitation to negotiate bidding process (which he won, in large part because of the moving expense savings for the tenant that the other bidders did not have) he refused to pay sayinig that thiis was a new lease. The new lease nets the landlord substantially the same amount as the extension provision provided even though several expenses (ie property taxes, insurance eic) was shifted to landlord. As a broker for 30 years, the term “extensions” traditionally meant if the tenant stayed in place, not the present more narrow interpretation. Any help you can provide would be appreciated. I acknowledge that I will not rely on any info except in a general nature and not in a attorney client relationship. Thanks.
By: vigilocanis on July 3, 2010
at 5:03 pm
I wish I could provide some guidance, but it sounds like you have approached a very specific circumstance with the change in Florida law. My general suggestion, as a Texas licensed attorney with limited-to-no background in Florida law, would be that the language of the leasing agreement should control, unless the statute specifically supercedes any written agreements.
You might be looking at a battle over the language of the contract. I believe you would be best served talking to an attorney licensed in Florida who can look over the commission agreement and will be more familiar with how Florida case law treats the new statutory changes.
Best of luck.
By: Brian Baker on July 7, 2010
at 4:31 pm