Ohio Commercial Real Estate Listing Agreement

When it comes to commercial real estate transactions in Ohio, having a well-drafted listing agreement can make all the difference. A commercial real estate listing agreement is a contract between a property owner and a real estate broker. The broker is authorized to market and sell the property on behalf of the owner, according to the terms of the agreement.

Ohio has specific laws governing the creation and enforcement of commercial real estate listing agreements. As a professional, it is important to understand the key components of these contracts. Here are some essential features you should consider when drafting or reviewing an Ohio commercial real estate listing agreement.

1. Property Description

The listing agreement should clearly and accurately describe the property being listed for sale or lease. This includes its location, size, use, and any other relevant details. Be sure to include any special requirements, such as zoning restrictions or environmental considerations.

2. Listing Price or Rental Rate

The agreement should include the asking price or rental rate for the property. It is important to note that the broker may be able to negotiate a different price or rate with potential buyers or tenants, but the initial listing price will set the stage for these negotiations.

3. Commission Structure

The commission structure is a critical part of the listing agreement. This outlines the amount and timing of the commission payments due to the broker upon the successful sale or lease of the property. In Ohio, the commission structure must be in writing and signed by both parties to be enforceable.

4. Listing Term

The listing agreement should also specify the length of time the listing will remain in effect. This can vary depending on the type of property and the market conditions, but it is generally between 30 and 180 days.

5. Brokerage Duties and Responsibilities

The listing agreement should clearly outline the duties and responsibilities of the real estate broker. This includes marketing the property, conducting property tours, negotiating with potential buyers or tenants, and advising the owner on pricing and other aspects of the transaction.

6. Termination Provisions

Finally, the listing agreement should specify the circumstances under which either party may terminate the agreement before the end of the listing term. This can include breaches of the agreement, changes in market conditions, or other factors that make it impractical or impossible to continue the listing.

In conclusion, creating a well-drafted Ohio commercial real estate listing agreement is crucial for success in the sale or lease of a property. As a professional, you can help ensure that the agreement accurately reflects the intentions of the parties involved and complies with Ohio law. By focusing on the essential components outlined above, you can help protect the interests of your clients and set them up for a successful transaction.