Commercial Lease Commission Agreement Template for India

The Commercial Lease Commission Agreement is essential for formalizing the business relationship between property owners and real estate brokers in India's commercial real estate sector. This document is typically used when a property owner seeks to engage a professional broker to secure tenants for commercial properties, establishing clear terms for commission payments and service expectations. The agreement must comply with various Indian regulations, including RERA 2016, state-specific real estate laws, and GST requirements. It specifies commission rates, payment schedules, scope of broker services, and protection periods, while also addressing potential disputes and compliance requirements. The Commercial Lease Commission Agreement serves as a crucial tool for protecting both parties' interests and ensuring transparency in commercial real estate transactions.

1. Parties: Identifies and provides full details of all parties to the agreement - typically the property owner/landlord and the broker/agent

2. Background: Establishes the context of the agreement, including brief description of the property and the owner's intention to engage the broker

3. Definitions: Defines key terms used throughout the agreement including 'Commission', 'Lease', 'Property', 'Tenant', etc.

4. Appointment: Formal appointment of the broker/agent and specification of whether the appointment is exclusive or non-exclusive

5. Scope of Services: Detailed description of services to be provided by the broker/agent

6. Commission Structure: Details of commission rates, calculation methods, and payment terms

7. Payment Terms: Specifies when and how commission payments will be made, including any staged payments

8. Representations and Warranties: Standard representations and warranties from both parties

9. Obligations of the Owner: Specific duties and responsibilities of the property owner

10. Obligations of the Broker: Specific duties and responsibilities of the broker

11. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

12. Confidentiality: Provisions regarding confidential information and its protection

13. Dispute Resolution: Process for resolving disputes between parties

14. Governing Law: Specifies Indian law as governing law and jurisdiction

15. General Provisions: Standard boilerplate clauses including notices, amendments, entire agreement, etc.