When buying a commercial real estate property, the brokerage agreement is between the buyer or seller and the broker. The broker is an agent of the buyer or seller and, as an agent, has fiduciary duties to the client. Sometimes the broker could act as a dual agent, which creates potential conflicts of interest. Real estate counsel can serve to ensure the broker will represent a client's interest in a transaction by crafting a detailed agreement that meets those needs.
Most states recognize that real estate brokers occupy a position of trust through a fiduciary relationship with the parties they represent. A fiduciary relationship brings with it requirements of fidelity and good faith. These issues are often raised in claims that an agent has acted as a real estate broker and a buyer (or seller) of a property. It is a potentially dangerous position for an agent to occupy.
The benefit of the brokerage agreement is clear communication between the buyer (or seller) and the broker. It is an excellent opportunity to discuss who will perform what tasks. At a minimum, the best agreements shall establish: (1) the timing for completing tasks, (2) when and how the broker is paid, (3) how to handle broker expenses, and (4) when the broker's representation ends.
The broker agreement should limit liability and include indemnification language that protects the broker from the client's acts and ensures that clients are not held responsible for the broker's act. Because this is an agency relationship, the client must communicate to the broker what representations or statements the broker can make on behalf of the buyer or seller. If a dual agent situation cannot be avoided, the issues of potential conflicts of interest should be addressed in the agreement.
Listen as our expert panel discusses what constitutes an enforceable broker agreement, clarifies provisions to establish clear fiduciary duties, and outlines how to avoid conflicts of interest while limiting potential liability for the acts of others.
Brewer Offord & Pedersen LLP
The Law Offices of Peter N. Brewer, a real estate and lending law firm located in the heart of Silicon Valley, recently produced a free webinar covering important legal issues that California landlords needs to know. Discussing deposits, leases, and habitability considerations, attorney Ashlee D. Adkins and Henry Chuang provided critical information for owners, REALTORS®, and investors alike who are considering residential rental properties as a source of additional investment.
There is a minefield of options for hedge funds to consider given the proliferation of choices and the low barrier to entry. In this presentation, guest speaker, Mark Kress, will discuss one approach that focuses on AUM size, boutique strategies, replicability, operational considerations, and diversification.
The result is a process that builds a multi-manager portfolio that helps diversify away from core asset exposure often invested through mutual funds and/or ETFs. In aggregate the portfolio has limited market exposure where the managers capitalize on volatility-induced mispricing and fundamentally driven exposures.
Join us Wednesday, September 14th, at 1:00 P.M. EDT to hear how to build a hedge fund allocation with guest speaker Mark Kress. Register now!
Dodge Data & Analytics
This webinar features data on sustainability trends drawn from three Dodge Data & Analytics research reports. Continued growth in green building in the single family and multifamily markets are discussed, along with the factors influencing that growth and the products considered most valuable.