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Tenant Representation Agreement

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TENANT REPRESENTATION AGREEMENT

This Tenant Representation Agreement (Agreement) is made and entered into as of Effective Date: by and between Broker Name: (Broker/Brokerage), and Tenant Name: (Client).

1. APPOINTMENT AND AUTHORITY

Client hereby retains Broker as Client's exclusive representative to locate, evaluate and negotiate the lease or sublease of commercial or residential premises meeting the criteria set forth in Section 2. Broker is authorized to act on behalf of Client in communications with landlords, their agents, and third parties for the purposes described herein. Broker does not have authority to sign any binding lease or contract on behalf of Client unless Client expressly provides written authorization.

2. PROPERTY CRITERIA

Client's desired property criteria (location, size, term, budget and other material requirements):

3. PROPERTY IDENTIFICATION (IF APPLICABLE)

4. TERM AND EXCLUSIVITY

This Agreement shall commence on Start Date: and expire on End Date: unless earlier terminated pursuant to Section 10. During the term Client grants Broker the exclusive right to represent Client with respect to locating and negotiating leases for properties that meet the criteria above.

Exclusive representation: Yes    No

5. SCOPE OF SERVICES

Broker shall: identify available properties that meet Client's criteria; schedule and accompany property inspections; advise on market terms; prepare and present offers; negotiate business and lease terms; coordinate due diligence and lease documentation to completion. Broker will keep Client informed of material developments and will act in Client's best interests consistent with duties owed.

6. COMPENSATION

Broker's compensation shall be as follows (select and complete the applicable option):

Commission shall be earned and payable upon the earlier of (a) execution of a lease or sublease for a property procured by Broker, or (b) the effective date of such lease. If Broker procures a lease proposal accepted by Landlord that results in an executed lease within the Protection Period described below, Broker shall be entitled to the commission specified herein even if the lease is executed after termination of this Agreement.

Client acknowledges that Broker may receive compensation from third parties (including landlords). Client agrees to disclose to Broker any direct payments Client anticipates making to Broker and to reimburse Broker for pre-approved out-of-pocket expenses incurred on Client's behalf (such as filing fees, background checks, courier, and travel expenses) upon presentation of invoices.

7. CLIENT OBLIGATIONS

Client shall: (a) provide accurate and complete financial and business information reasonably requested by Broker; (b) refer all lease opportunities for properties meeting the criteria to Broker during the term; (c) not negotiate directly with landlords for properties procured by Broker without notifying Broker; and (d) promptly notify Broker of any offers or communications from landlords or other brokers concerning properties within the scope of this Agreement.

8. DISCLOSURES

Client acknowledges receipt of or will require from landlords, as applicable, disclosures concerning hazardous materials and known property conditions. Client represents whether Client has received any known disclosures for properties already identified:

Lead-based paint disclosure received: Yes    No    Not Applicable

Mold or water intrusion disclosure received: Yes    No    Not Applicable

Known prior material property damage or repairs disclosed: Yes    No    Not Applicable

9. INSURANCE AND DUE DILIGENCE

Client shall, at Client's expense, procure and maintain customary liability insurance and any other insurance required by a landlord under any lease. Client is responsible for all inspections, surveys, and investigations (including environmental assessments) necessary to verify property condition and suitability. Broker's role does not include providing environmental, structural or legal advice; Client should obtain independent expert advice as needed.

10. TERMINATION

Either party may terminate this Agreement for convenience upon written notice to the other party. Termination does not relieve Client of liability for commissions earned by Broker prior to termination or for transactions for which Broker procured a ready, willing and able landlord or property during the term or the Protection Period.

11. CONFLICTS, REPRESENTATIONS, AND WARRANTIES

Broker represents that Broker and Broker's affiliates will disclose prior and current relationships that present material conflicts of interest. Client represents that the information provided to Broker is true and complete to Client's knowledge and that Client has authority to enter into this Agreement. Each party warrants that its signatory has full authority to execute this Agreement.

12. INDEMNIFICATION AND LIMITATION OF LIABILITY

Each party shall indemnify and hold harmless the other party from and against claims arising from that party's breach of this Agreement, negligence or willful misconduct. Broker's liability to Client for any claim shall be limited to direct damages and shall not exceed the total commissions actually received by Broker under this Agreement. In no event shall either party be liable for incidental, special or consequential damages.

13. GOVERNING LAW; ENTIRE AGREEMENT

This Agreement shall be governed by the laws of the state where the principal property of interest is located. This Agreement contains the entire understanding of the parties with respect to its subject matter and supersedes all prior agreements and understandings, whether written or oral, relating thereto. This Agreement may be amended only by a written instrument signed by both parties.

14. NOTICES

All notices under this Agreement shall be in writing and delivered to the addresses set forth below (or such other address as a party may designate by written notice).

15. MISCELLANEOUS

If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect. The parties acknowledge that this Agreement may be executed in counterparts and by electronic signature, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

ADDITIONAL TERMS / NOTES

Tenant Name:

By:

Date:

Broker / Brokerage:

By:

Date:

Enter text✕

What the Tenant Representation Agreement Is and When It Applies

A Tenant Representation Agreement is a written contract between a tenant (or tenant's agent) and a broker or representative that outlines the broker's duties, the tenant's space requirements, and the broker's compensation for securing a lease or managing lease negotiations. It defines the scope of representation, exclusive or non-exclusive status, term length, and any confidentiality or conflict-of-interest provisions. The agreement guides how property searches, site tours, and lease negotiations proceed and establishes when a broker earns a commission. The document is commonly used in commercial real estate transactions across the United States.

Why a Tenant Representation Agreement Matters

The agreement clarifies responsibilities and payment terms, reduces disputes over commissions, and creates a record that supports enforceability. It sets expectations for search criteria, decision timelines, and confidentiality while documenting the parties' consent to contractual terms.

Why a Tenant Representation Agreement Matters

Who Typically Engages with a Tenant Representation Agreement

The signed agreement protects both tenant and broker by documenting commission triggers, exclusivity, term length, and any post-termination protections.

  • Corporate tenants seeking multiple locations or leases requiring negotiation support and market analysis.
  • Independent tenants and small businesses that want professional lease negotiation and landlord coordination.
  • Commercial brokers and tenant-representation firms documenting their engagement and commission terms.

Core Elements to Include in a Professional Agreement

A reliable Tenant Representation Agreement is concise but specific, covering compensation, exclusivity, term, scope of services, confidentiality, and termination terms to prevent later disputes.

Scope

Describe property types, geographic boundaries, size range, lease length targets, and required tenant improvements to focus the broker's search and efforts.

Term

State the agreement start and end dates, renewal mechanics, and whether the agreement survives a signed lease for commission protections.

Compensation

Specify commission structure, payment timing, who pays (landlord or tenant), and how commissions are calculated or split with cooperating brokers.

Exclusivity

If exclusive, define the exclusivity period and any carve-outs; if non-exclusive, explain how multiple brokers are handled and commission priority.

Termination

Detail notice requirements, cure periods for breaches, and the effect of termination on pending negotiations and commission rights.

Confidentiality

Include confidentiality obligations for proposals, financials, and negotiation strategies and any permitted disclosures to lenders or counsel.

Step-by-Step: Completing a Tenant Representation Agreement

Follow these steps to complete the agreement accurately and consistently.

  • 01
    Collect details: Gather tenant, broker, and scope information before drafting.
  • 02
    Set compensation: Agree on commission formulas and triggers in writing.
  • 03
    Define term: Enter start/end dates and any renewal provisions.
  • 04
    Sign and distribute: Obtain signatures from authorized parties and share executed copies.

How to Configure an Online Workflow for This Agreement

Configure a repeatable eSigning workflow to reduce errors and capture an audit trail for each transaction.

Template Setup Create a reusable template with locked fields and required signature locations.
Signer Authentication Choose email verification or two-factor for higher-assurance signers.
Conditional Fields Use conditional fields for optional exclusivity clauses or commission splits.
Automated Reminders Set reminders for unsigned parties and expiry alerts for exclusivity periods.
Integrations Connect CRM or document storage to sync signed copies and key metadata.

Standard Routing and Submission Path for Signed Agreements

Typical routing ensures each party receives the executed agreement and a machine-readable audit trail.

  • Send to Tenant: Tenant reviews and signs with verified identity.
  • Send to Broker: Broker signs and confirms commission language.
  • Landlord Notice: Deliver a copy to landlord when required by commission terms.
  • Archive: Store executed copy in secure records with retention metadata.

Digital Signing and File Format Considerations

Ensure the platform can export signed PDFs with embedded audit reports and supports any compliance needs such as HIPAA BAA or 21 CFR Part 11 if applicable.

  • File Formats: PDF and DOCX supported; preserve original formatting.
  • Audit Trail: Capture IP, timestamp, and signer email for attribution.
  • Integrations: Connect to CRM, storage, and accounting systems.

Common Deadlines and Timing Expectations

Track deadlines tied to the agreement: exclusivity windows, notice periods, and commission payment timing are the most time-sensitive items.

Effective Date Entry:

Effective date starts duties and exclusivity.

Exclusivity Window:

Defined period when broker has sole representation rights.

Commission Payment:

Trigger tied to signed lease execution or landlord payment.

Termination Notice:

Notice period required to end representation rights.

Record Retention:

Retain executed agreement per applicable retention rules.

Common Preparation Mistakes to Avoid

  • Leaving compensation terms vague, which can lead to commission disputes and costly litigation.
  • Failing to specify exclusivity or carve-outs, permitting competing broker claims on the same deal.
  • Using inconsistent party names between the agreement and corporate formation documents, complicating enforcement.
  • Neglecting to document who pays commissions or how landlord payments offset tenant obligations.

Consequences of an Incorrect or Incomplete Agreement

Commission Disputes: Litigation risk and delayed payment.
Unenforceable Terms: Courts may void ambiguous provisions.
Tax Exposure: Incorrect reporting may trigger IRS penalties.
Breach Liability: Wrongful termination can incur damages.
Data Privacy Risk: Improper handling of tenant data can violate HIPAA or state laws.
Recordkeeping Failures: Noncompliance with retention obligations.

eSignature Vendor Comparison for Tenant Representation Agreements

Comparing core pricing and compliance features helps you choose a provider that supports required workflows and retention needs; signNow is listed first per table convention.

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 Varies by vendor Varies by vendor Varies by vendor Varies by vendor
Bulk Send Yes Yes Yes Yes Varies
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No envelope cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Frequently Asked Questions About Tenant Representation Agreements

Answers below cover enforceability, signatures, commission triggers, amendment procedures, and revocation mechanics commonly asked by tenants and brokers.


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