Transaction Agency Question

Alex.wallace789's picture
Rank: Chimp | 5

California broker here. I am sure many other brokers here have been in similar situations so I'd appreciate any feedback or advice...

  • I am the landlord rep at a building
  • I have been working with a potential tenant for the space for a while
  • I have provided the tenant a reasonable amount of guidance and information regarding the property and potential deal with the intent to have them lease the space
  • One day, another broker contacted me stating that the potential tenant I have been working with is their client
  • Now, there is a conflict about to represents who.

How would you handle this?
Who should rep the tenant?
If the tenant rep is the broker that just surfaced, are they entitled to a commission given the circumstances?

Comments (3)

Apr 17, 2019

You're definitely the procuring broker. But it's also hard to tell someone who can or cannot represent them. I think you need to have a difficult but necessary conversation with the tenant. Tell them what's going on how this works.

Whoever controls the client wins that commission.

Apr 17, 2019

I definitely agree that I am procuring broker.
How do you suppose this situation should be explained to the Landlord? It's important that they understand my position.

Apr 17, 2019