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Home My WebLink About1994-07-25 94-345 ORDERDate 7/25/94 Item No. 94-345 Item/Subject: REAi, ESTATE BROKERAGE COMMISSION POLICY Raaponsible Department: Community and Economic Development Commentary: / De ent Read Manager's Comments 13RnFe. @unHu�uA a.a7-PO ,1 ,1 Associated Information:p66ti ,.r ,eaw Finance Director Legal Approval: C ty Solic' r Introduced For [_Passage _First Reading Page 1 of 6 Referral �UWAU (7n9/94) .. 94-345 Amlped to Counam Baldacci July 35. 1994 CITY OF BANGOR (TITLE.) imrUr, A'bPt'w a y 'l 11egar3tty 2eyment. of ca Sion W � yYtate Agents Imol N tic Sale or levee of eKa V Cxyetl by Hie city of Ba ab Manag d by eanair Coxporatton. By the My Cwsdil of at Cita"B . TMAS the city Merger is tcreby mtbo4and direotetl, on behalf of the Cit' of ean9 , W implm Hie attached Policy mANing the payment of oamdsa W real estate agents fmrolved in Hie sale or lease of pmperty o by He city of &v arcl manage] by Bm lir Cox�. July 25, 1994 94-345 Passed O ROE R Title, Adopting a Policy Regarding Payment of x l............................ Commissions to Real Estate Agents Involved .in.tM1e. Sale. pr. Eease. ef. Preperty. Pored by Y the City of ganger and Managed by Baruit Corporation. Amipxd to Couneflman 94-045 R ; lWCORPORATION • BANGOR AIRPORT CIVIC DEVELOPMENT CORPORATION 40 Economic De.elcpment DePannem Banenr OW Hall Bangor, Maine W<Ol Memorandum Tot Remmers of the City Council From: Stephen A. Bolduc, Executive Meager Date: July 25, 1994 NiQ G Subject: Beal Estate Brokerage Commission policy Occasionally real estate agents will contact the City or BaMir Corporation on behalf of clients seeking to purchase or lease City -owned buildings or land. Those agents expect to represent and receive a commission from the Seller. The City has not adopted a policy regarding the payment of commissions -to real estate agents involved in the sale or lease of property. Following is a policy recommendation approved by formic Corporation establishing that commissions will be paid upon the sale or lease of property and that real estate agents asset register their representation Of clients. The policy recommendation is based upon several conclusions: 1. Beal estate agents are a source of new clients. 2. City -owned properties should rot be represented exclusively by one brokerage firm, but be open for representation by any real estate agent. 3. Brokerage firms will not assume the marketing costs of City-oemed properties as in an exclusive "listing^ arrangement. 4. The absence of commissions would create a disincentive to introduce clients to the City's property and motivate agents to show industrial and commercial property outside of Bangor. 5. The absence of commnissions would create a psychological barrier between the City, BanAfr Corporation, and the brokerage community. The opportunity to earn commissions will maintain positive communications between us. OPERATOR OF BANGOR FOREIGN TRADE ZONE NO. BE Tesphone:(M) 91179 . TELEX: BANAIR 9511007 1. All properties owned by the City of Bangor and managed by BanAir Corporation that are available for sale or lease will be eligible for representation by all licensed real estate agents on a non-exclusive basis. 2. Cosmiissions will only be paid to licensed real estate agents who have registered a client with the City. of Bangor and Ba:wi.r Corporation and whose registration agreement is valid at the time of closing or final execution of the lease. A commission will not be paid if a registration has expired or In invalid for any other reason. Pse -existing clients of the City of Bangor and BakSr Corporation are not eligible for registration. 3. sm. agent - client registration will be valid for six (6). months from the date of execution of the registration form by BanAir Corporation. The agent - client relationship can be extended or cancelled upon receipt of written notification signed by the client. 4. TheCity of Bangor's and Ba Air Corporation's obligation to pay a commission is conditioned upon the agent not receiving any compensation from the client in connection with the sale r lease of property owned by the City of Bangor and managed by BeMir Corporation. An agent representing and being compensated by the client will not need to register the client. 5. The commission for sale transactions will be 5% of the selling price paid at the closing. 6. For lease transactions, the commission will be based upon the number of years in the initial term of the lease, not including any options to extend the term. The commission may be paid in full upon receipt of the first month's rent payment or on other negotiated Terme approved by the City Council according to the following schedule: - Five (58) percent of the annual lease payment for each of years 1 to 5, plus, Two and One -Quarter (2.258) percent of the annual lease payment paid in year 1 for each of years 6 to 10, plus, One (1i) percent of the annual lease payment paid in year 1 for each of years 11 to 20. W&Wx m.em. 17/211%) 94-345 eat ESTATE AGENT - CLIEW REGISTRATION AGREKI The undersigned Agent (hereinafter referred to as "AGENT") certifies that he/she is a real estate agent licensed in the State of Baine and hereby registers the following Client with BanAir Corporation and the City of Bangor (hereinafter referred to as "B.RAIR/CITY"): (hereinafter referred to as "CLIENT"). By signing this agreement, Agent and Client represent to Banlir/City that the Agent Is the sole and exclusive Agent dealing with the Client in connection with the sale or lease of property owned by the City of Bangor and managed by BanAir Corporation. 1. - Tern, The term of this agreement is six (6) months. This term shall commence on the date of execution by BaN r/City and shall end at midnight on the same day of the sixth calendar month thereafter. The term can beextended by execution of another agreement. I. Termination: This agreement can.be terminated by the Agent or Client by providing written notification of such termination signed by the client to BanAir/City. 3. C®ise If, during the team of this agreement, a purchase and sale or lease agremnent is executed by and between Bam.Air/City and the Client for property owned by the City of Bangor and managed by ganAlr Corporation, the Agent willbe entitled to a real estate commission based on the attached -SCHEDULE OF COMMISSION BATES PAID TO REAL ESTATE AGEBTS". Agent agrees that if any other Agent asserts a claim to a commission, or portion thereof, Agent and Client shall indemnify and hold SanAir/City harmless from and against any coats, expenses or liabilities (including attorneys' fees) incurred by Danlir/City in connection with such claim. 4. No Obligation tO Sell or I¢ase: The registration of the Client in no way obligates Bd Air/City to consider the Client or negotiate with the Client for any property owned by the City of Bangor and managed by BanAir Corporation. 94-345 5. No Comaensation from Client: BanAii/City's obligation to pay a commission as provided above is conditioned upon the Agent and his/her's designated broker receiving no compensation from the Client or any affiliate of the Client in connection with the sale or lease of property owned by the City of Bangor and managed by BanAir Corporation. Agent and Client agree that they will sign a motorized statement to this effect at the closing and prior to payment of any commission by Ban Air/City. 6. Bale or Lease Neaotiationa: Agent and Client acknowledge that the Agent is not authorized to commit Banair/City to any sale or lease terms or other obligations, and written or oral statements or representations of Agent shall not be binding upon Bankir/City. Further, Bankir/City's only obligation to the Client shall be as stated in a purchase and sale or lease agreement between the Client and Banhir/City, if one is executed, and any other written or oral statement, whenever executed, whether by Agent or Bankir/City, shall not be binding upon BanAir/City. ]. Nomoxclue mo avitt': This agreement does t constitute an exclusive right to sell or lease or an exclusive agency contract, and Agent is not authorised to exclusively advertise, promote or market property owned by the City of Bangor and managed by BanAir Corporation. Nothing herein shall be construed as preventing BanAir/City from utilising other agents or services (Including multiple listing services) In connection with the lease or sale of property owned by the City of Bangor and managed by BanAIr Corporation or from selling or leasing property owned by the City of Bangor and managed by Ba:AIr Corporation to other Clients, and except as specifically provided above, Ban&ir/City shall not be liable for any comissfon to Agent hereunder. 8. Succeceox/Aaeiam: This agreement shall be binding an and shall inure to the benefit of the parties and their respective heirs, administrators, successors and assigns. ccxstrr: Client's signature Date Company, Address, a Telephone number Agent's Signature / Date Agents's Real Estate License Number Real Estate Agency, Address, S Telephone number BRNAIR CORPORATION/CITY OF BAPGOR BanAir Signature Date (printed name s title) SCHEDULE OF C014IISSIOd RATES PAID TO R ESTATE AG@PPS Sale Transactions - 56 of the selling price paid at the closing. Lease Transactions - C®Lesions will be based upon the number of years in the initial tern of the lease, not including any options to extend the term. A courission may be paid in full upon receipt of the first month's rent payment or on other negotiated terms approved by the City Council according to the following schadulez Five (5i) percent of the annual lease payment for each of years 1 to 5, plus, Tiro and One -Quarter (2.258) percent of the annual lease payment paid in year 1 for each of years 6 to 10, plus, e (18) percent of the annual lease payment paid in year 1 for each of were 11 to 20. wmzw\a-�u.wc �zizvna�