Can this agreement be signed electronically?

Yes. Electronic signatures are generally enforceable under the ESIGN Act and UETA where adopted, provided the parties demonstrate intent, consent to electronic records, signer attribution, and retention ability. Confirm any statutory exceptions that might apply in your jurisdiction.

Do brokers need to be licensed or disclosed?

Yes. Brokers must comply with state real estate licensing laws and disclose brokerage relationships as required; failure to disclose can affect compensation claims and regulatory compliance.

What happens if the signer lacks authority?

If a signer lacks corporate authority, the agreement may be voidable; obtain corporate resolutions, officer identification, or other proof of authority before relying on execution.

Is notarization required for enforceability?

Not typically for private commission agreements, but local practice or specific state rules may require notarization for certain attestations—verify with state law or counsel.

How do you resolve commission disputes?

Include dispute resolution such as mediation or arbitration in the agreement. Maintain contemporaneous records of introductions, communications, and negotiations to support claims.

Can the agreement be revoked or terminated early?

Yes, if the agreement contains termination provisions. Notice periods and post-termination protection for earned commissions should be explicitly stated to avoid uncertainty.

Electronic Signature
Templates
Real estate
Commercial Tenant Representation Agreement

Commercial Tenant Representation Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

COMMERCIAL TENANT REPRESENTATION AGREEMENT

Parties

This Commercial Tenant Representation Agreement (the Agreement) is entered into between:

Client Name: Client Entity Type:

Individual Corporation Limited Liability Company (LLC) Partnership Other

Client Contact Address: Broker / Tenant Representative: Broker License Number: Broker Contact Address:

Property Identification

Target Property Address(es): Parcel / APN Number(s): Legal Description (if applicable):

Engagement and Term

Effective Date:

Term of this Agreement shall commence on and expire on unless earlier terminated in accordance with this Agreement.

Representation Type: Exclusive Tenant Representation Non-Exclusive Tenant Representation

Scope of Services

Broker shall use professional efforts to identify suitable commercial space, negotiate terms of lease or acquisition, coordinate site tours and inspections, advise Client regarding market conditions, and assist in drafting and review of transaction documents. Specific services include:

Compensation and Commission

Unless otherwise agreed in writing, Client and Broker agree that Broker's compensation will be as follows:

Commission Structure (percentage of total lease value): Or Flat Fee (if applicable):

Payment Trigger (select all that apply): Lease execution by Tenant Lease commencement Other (specify in payment_notes)

Payment Notes / Special Terms:

If a third party (including Landlord) agrees to compensate Broker, Client remains responsible to Broker for compensation pursuant to this Agreement if such third party fails to pay. Any commission payable by Client shall be offset by any commission received from third parties to the extent permitted by law and subject to written accounting to Client.

Expenses and Reimbursements

Client shall reimburse Broker for reasonable out-of-pocket expenses incurred in connection with Broker's performance, including but not limited to travel, advertising, courier charges, market reports, and legal or technical consultants retained with Client's consent. Reimbursable expenses require substantiation upon request.

Expense Approval Threshold (optional):

Client and Broker Obligations

Client represents that it has full authority to retain Broker for the purposes described herein and will cooperate in good faith. Client shall promptly disclose material facts affecting negotiations and provide documents reasonably requested by Broker.

Client Obligations / Instructions to Broker:

Broker shall perform its duties in compliance with applicable law and industry standards, act as fiduciary to the extent required by law, and disclose material information to Client when known.

Broker Duties / Limitations:

Conflicts, Disclosures and Representations

Broker shall disclose any material conflicts of interest or existing relationships that may affect Broker's ability to represent Client. If Broker represents multiple parties in a potential transaction, Broker shall obtain informed consent when required by law.

Broker has the following present or prior relationships that may be relevant:

Confidentiality

Both parties agree to maintain as confidential all non-public information exchanged in connection with the services, except disclosures required by law or agreed in writing. Confidential information shall not be used for purposes other than those authorized by this Agreement.

Default, Termination and Remedies

Either party may terminate this Agreement for material breach if the breach remains uncured for fifteen (15) days after written notice. Termination shall not relieve Client of liability for compensation earned or expenses incurred prior to termination.

In the event of dispute, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs incurred in enforcing this Agreement, unless prohibited by law.

Indemnification and Limitation of Liability

Each party shall indemnify, defend and hold harmless the other from third-party claims arising from the indemnifying party's gross negligence, willful misconduct, or breach of this Agreement. Broker's liability for damages arising out of this Agreement shall be limited to direct damages and shall not include consequential or punitive damages, except for willful misconduct or fraud.

Governing Law and Entire Agreement

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to its conflicts of law principles. This Agreement constitutes the entire agreement between the parties with respect to the subject matter and supersedes all prior agreements and understandings, whether written or oral.

Notices

All notices required or permitted under this Agreement shall be in writing and sent to the addresses below by personal delivery, overnight courier, or certified mail, return receipt requested.

Client Notice Address: Broker Notice Address:

Disclosures and Acknowledgments

Client acknowledges receipt of a copy of this Agreement, understands the commission arrangement and the scope of Broker's duties, and authorizes Broker to act on Client's behalf in accordance with this Agreement.

Additional Acknowledgments / Notes:

Client (Tenant) — Printed Name:

By:

Date:

Broker / Tenant Representative — Printed Name:

By:

Date:

What a Commercial Tenant Representation Agreement Is

A Commercial Tenant Representation Agreement is a written contract between a tenant and a broker or agent that defines the broker’s authority, scope of services, term, and commission for locating, negotiating, or securing commercial lease space. The agreement clarifies whether representation is exclusive or non-exclusive, describes candidate property criteria, and records how commission will be earned and paid. It is a private contract used to align expectations, document fiduciary duties, and preserve evidence for commission disputes, and it often precedes formal lease negotiations and due diligence activities.

Why this Agreement Matters and Its Legal Foundations

The Commercial Tenant Representation Agreement protects both tenant and broker by documenting duties, compensation, and the period of representation. Electronic execution is generally enforceable under the federal ESIGN Act (15 U.S.C. ch. 96, 2000) and intrastate under UETA (1999) where adopted, but parties should confirm any statutory exceptions that may apply to particular transactions.

Who Typically Uses a Tenant Representation Agreement

The document is also useful for third parties who pay or verify broker commission, such as landlord representatives, property managers, and accounting departments.

Commercial brokers and leasing agents representing tenant interests in searches and negotiations.
Corporate real estate or facilities teams procuring space for offices, retail, or industrial use.
Legal counsel and procurement managers reviewing commission, exclusivity, and indemnity provisions.

Essential Clauses to Look For in the Agreement

A professional Commercial Tenant Representation Agreement includes several core clauses that allocate responsibilities, set compensation mechanics, and define time limits for representation.

Scope of Services

Describe specific broker tasks such as market search, site tours, lease negotiation, cost analysis, and introduction of prospective landlords or properties.

Term and Exclusivity

Specify the start and end dates, any automatic renewal, and whether the broker has exclusive right to represent the tenant during the term.

Compensation / Commission

Set commission triggers, calculation method, payment timing, and whether commission is payable from landlord, tenant, or both, including protection periods.

Conflicts and Disclosures

Require disclosure of concurrent relationships or referrals and describe how conflicts of interest will be managed and documented.

Termination and Remedies

State grounds for termination, notice requirements, post-termination protection for earned commissions, and dispute resolution process.

Confidentiality and Data

Address handling of confidential tenant information, permitted disclosures, and data security measures for proposals and financial documents.

Step-by-Step: How to Complete the Agreement

Follow a consistent order to reduce rework and ensure all critical items are addressed before signature.

01

Gather parties: Confirm legal names and signatory authority before drafting.
02

Define scope: Write clear duties, territories, and property criteria.
03

Specify payment: Include commission formula, timing, and protection periods.
04

Execute and retain: Have authorized signers sign, then store executed copies securely.

Typical Execution and Submission Workflow

A predictable workflow reduces signature delays and preserves audit evidence for commission disputes.

Prepare Document: Draft agreement, populate fields, attach exhibits.
Set Signing Order: Designate broker and tenant signing sequence.
Authenticate Signers: Use email, SMS code, or higher authentication when needed.
Archive Signed Copy: Save PDF with audit trail and certificate.

Configuring a Digital Workflow for This Agreement

Key settings streamline routing, authentication, and storage when using an e-signature platform for execution.

Field \| Configuration	Value \| Value
Signing Order	Sequential or parallel as required by parties
Field Types	Signature, initial, date, checkbox, text
Authentication	Email link, SMS code, or KBA where higher assurance is needed
Storage Format	PDF with embedded audit trail, PDF/A preferred

Platform Capabilities for Secure Execution

Ensure the chosen system can produce a tamper-evident PDF and retains an audit trail sufficient to prove execution events and signer attribution.

Integrations: Salesforce, NetSuite, Google Workspace, Microsoft 365
File Types: PDF, DOCX, HTML supported
Security: TLS 1.2/1.3 and AES-256 encryption

Common Timeframes and Deadlines to Track

Document-specific timing obligations prevent loss of exclusivity and ensure commission protections are enforced.

Exclusivity Period:

Include explicit start and end dates for exclusive representation.

Due Diligence Window:

Set the number of days the tenant has to inspect or approve property.

Lease Execution Deadline:

Specify date by which the lease must be signed to trigger commission.

Commission Payment Date:

Identify when commission is payable after lease execution.

Termination Notice:

State how many days' notice are required to terminate the agreement.

eSignature Platform Pricing and Feature Snapshot

Compare starting price and core capabilities for common eSignature vendors. Pricing reflects standard entry tiers and publicly available plan indicators.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Free trial available	Free trial available	Free trial available	Free trial available
Bulk Send	Yes (Business Premium)	Yes	Yes	Yes	Yes
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

Security, Compliance, and Data Protections to Verify

Encryption in Transit: TLS 1.2/1.3

Encryption at Rest: AES-256

Certifications: SOC 2 Type II

Regulatory Compliance: ESIGN and UETA

HIPAA Support: BAA required

Audit Trail: Timestamped signer events

Key Risks and Financial Consequences to Watch For

Unauthorized Signing: May void agreement

Ambiguous Commission: Leads to disputes and litigation

Late Tax Reporting: Backup withholding 24% may apply

Missing Signatures: Commission claims can be denied

Incorrect Parties: Payment may be misdirected

Data Breach: Regulatory fines and reputational harm

Common Preparation Mistakes to Avoid

Leaving the commission trigger vague, such as 'upon lease execution,' without tying it to specific lease signature or landlord payment terms.
Failing to record whether the broker's right is exclusive and for which premises or geographic area that exclusivity applies.
Using inconsistent party names between the agreement and billing or tax documents, causing payment or 1099 complications.
Neglecting to document who pays the commission if landlord contribution, tenant payment, or split applies.

Real-World Examples of Tenant Representation Use

These real examples illustrate how tenant representation agreements are applied in practice and the records they create.

Optica Ventures — Broker Coordination

Optica used a standard tenant representation agreement to centralize broker duties and timelines

The broker documented site tours and offers during a three-month search window
The executed agreement clarified commission triggers and avoided a later dispute when two landlords made competing offers, ensuring smooth closing and payment reconciliation.

Martin Properties — Remote Execution

Martin Properties executed a tenant representation agreement entirely online for an office lease

Signers authenticated via email and SMS codes
The digital audit trail and stored PDF reduced turnaround time and provided clear evidence of authorization when the tenant later contested commission allocation.

Practical Tips for Accurate and Efficient Completion

Adopt consistent drafting habits and use structured templates to reduce ambiguity and speed execution.

Confirm Authority and Names

Verify corporate or signatory authority and use the precise legal entity names that will appear on tax or payment records to prevent payment or 1099 errors.

Be Explicit on Commission Terms

Define the trigger event, calculation method, payment timing, and protection period to reduce the risk of later disputes.

Document Exclusivity Carefully

If granting exclusivity, specify covered properties, territories, and any carve-outs to avoid conflicting engagements.

Preserve Audit Evidence

Retain signed PDFs, email confirmations, and timestamps; if notarization or RON is used, keep notary journals or recordings per state rules.

Key Milestones from Engagement to Commission Payment

Track milestones from engagement through tenant occupancy to ensure commission conditions are met and payments processed promptly.

01

Engagement Start

Agreement effective date and start of exclusivity or representation duty.

02

Search Completion

Date by which broker completes property introductions or defined search obligations.

03

Lease Execution

Signed lease date that typically triggers commission obligations.

04

Commission Payment

Date or condition when commission is payable and reconciled.

Frequently Asked Questions About Tenant Representation Agreements

Answers to common questions about enforceability, signatures, and dispute prevention when using a Commercial Tenant Representation Agreement.

Need help? Contact support

Can this agreement be signed electronically?
Yes. Electronic signatures are generally enforceable under the ESIGN Act and UETA where adopted, provided the parties demonstrate intent, consent to electronic records, signer attribution, and retention ability. Confirm any statutory exceptions that might apply in your jurisdiction.
Do brokers need to be licensed or disclosed?
Yes. Brokers must comply with state real estate licensing laws and disclose brokerage relationships as required; failure to disclose can affect compensation claims and regulatory compliance.
What happens if the signer lacks authority?
If a signer lacks corporate authority, the agreement may be voidable; obtain corporate resolutions, officer identification, or other proof of authority before relying on execution.
Is notarization required for enforceability?
Not typically for private commission agreements, but local practice or specific state rules may require notarization for certain attestations—verify with state law or counsel.
How do you resolve commission disputes?
Include dispute resolution such as mediation or arbitration in the agreement. Maintain contemporaneous records of introductions, communications, and negotiations to support claims.
Can the agreement be revoked or terminated early?
Yes, if the agreement contains termination provisions. Notice periods and post-termination protection for earned commissions should be explicitly stated to avoid uncertainty.

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