Choosing a Commercial Real Estate Broker - Sample
State Consumer Guide
OHIO CONSUMER GUIDE TO AGENCY RELATIONSHIPS
(Exclusive Tenant/ Buyer Agency Only Policy
)
TENANT rep .com
The State of
Ohio has made this required reading for office tenants. One reason
our national office tenant clients engage us on repeat assignments
across the country is that the same important office tenant
representation issues apply in every market.
The following standard consumer guide is a requirement of the State of
Ohio:
If you are a major corporation leasing or purchasing
office space, TENANT rep .com can provide you with expertise and
assistance. Because this is an important financial transaction your
corporation will enter into, it is important to understand the role of
the agents and brokers with whom you are working. Below is some
information that explains the various services agents can offer and
their options for working with you:
Representing Landlord/ Sellers
Most landlord/ sellers choose to engage real estate agents for
assistance with office leases and purchase of office buildings. When
they do so, they sign a listing agreement that authorizes the Broker and
the listing agent to represent their interests. As the landlord/
seller’s agent, the Broker and listing agent must: follow the landlord/
seller’s lawful instructions, be loyal to the landlord/ seller, promote
the landlord/ seller’s best interests, disclose material facts to the
landlord/ seller, maintain confidential information, act with reasonable
skill and care and, account for any money they handle in the
transaction. In rare circumstances a listing broker may offer "subagency"
to other Brokers which would also represent the landlord/ seller’s
interests and owe the landlord/ seller these same duties.
Representing Tenant/ Buyers
When leasing or purchasing office space, tenant/ buyers usually
choose to work with a real estate agent as well. Often the tenant/ buyer
wants to be represented in the transaction. This is referred to as
tenant/ buyer’s agency. A Broker and agent that agree to represent a
tenant/ buyer’s interest in a transaction must: follow the tenant/
buyer’s lawful instructions, be loyal to the tenant/ buyer, promote the
tenant/ buyer’s best interests, disclose material facts to the tenant/
buyer, maintain confidential information and, account for any money they
handle in the transaction.
Dual Agency
Occasionally the same agent and
Broker who represents the
landlord/ seller also represents the tenant/ buyer. This is
referred to as dual agency. When a Broker and its agents become "dual
agents", they must maintain a neutral position in the transaction. They
may not advocate the position
of one client over the best interests of the other client, or
disclose any confidential information to the other party without written
consent.
Representing
Both the Tenant/ Buyer & Landlord/ Seller On occasion, the
tenant/ buyer and landlord/ seller will each be represented by two
different agents from the same Broker. In this case the
agents may each represent the best interest of their respective clients.
Or, depending on company policy, the agents may both act as dual agents
and remain neutral in the transaction. When either of the above occurs,
the Broker will be considered
a dual agent. As a dual agent the Broker and its managers
will maintain a neutral position and
cannot advocate for the
position of one client over another. The Broker will also
protect the confidentiality of all parties.
For more information on agency law in Ohio you can
also contact the Ohio Division of Office space & Professional Licensing
at (614) 466-4100, or on their website www.com.state.oh.us.
Working with
TENANT rep .com
TENANT rep .com only represents tenant/ buyers. It does not represent
landlord/ sellers or list property for lease or sale. Therefore
TENANT rep .com will never act as a dual agent representing both parties
in a transaction. Instead it will only act as the tenant/ buyer’s agent
in the lease or purchase of office space.
When acting as a tenant/ buyer’s agent,
TENANT rep .com will seek its compensation from the listing broker. If
the property is not listed with any broker, or the listing broker does
not offer compensation, we will negotiate for a landlord/ seller-paid
fee. Though the listing broker or landlord/ seller pays us, TENANT rep
.com still represents only the tenant /buyer.
We hope you find this information to be helpful to
you as you begin your office leasing/ purchase transaction. When you are
ready to enter into a transaction, you will be given an Agency
Disclosure Statement that specifically identifies the role of the agents
and Brokers. Please ask questions if there is anything you do not
understand.
Because it is important that you have this
information Ohio law requires that we ask you to sign below,
acknowledging receipt of this consumer guide. Your signature will not
obligate you to work with TENANT rep .com if you do not choose to do so.
