Commission Terms and Conditions

Agents commission will be paid by The Johannesburg Land Company (Pty) Limited (“the Landlord”) on an effective cause basis subject to the following:

1.      Commission will be limited to a five-year lease agreement unless specifically agreed to the contrary in writing.

2.      No commission will be paid in respect of any business and/pr City Improvement District (“CID”) Levies.

3.      No commission will be paid in respect of renewal options or additional premises leased to the tenant during the currency of the lease.

4.      No commission will be paid on any rental paid as part of a financing arrangement or on any amortized costs.

5.      Commissions are paid at 100% of the tariff, as indicated per the Tariff structure below:

5.1. Commission shall be calculated as a percentage of the Gross Rental of the transaction. Gross Rental is defined as the sum of the Basic Rental, Operating Costs, and Parking Rental, escalated based on the agreed escalation rate. Additionally, for lease agreements with an initial Lease Term exceeding 36 months, the Gross Rental used to calculate the Commission, includes the actual Assessment Rates and Taxes contributions payable as specified in the lease agreement (These contributions are not subject to annual escalations).

5.2. Commission payable on 12- month leases will be equal to one month’s gross rental.

5.3. Commission payable on any lease that is more than 12 months will be as follows:

5.3.1.       5% on the first 2 year’s gross rental;

5.3.2.       2.5% on the next 3 year’s gross rental;

5.3.3.       1.5% on the next 3 year’s gross rental; and;

5.3.4.       1% on the balance.

It is specifically provided that “Gross Rental” referred to herein is to be read in conjunction with clause 5.1 hereof.

6.      Payment of the commission will only be paid upon the fulfilment of the following conditions:

6.1. The lease being signed by both parties,

6.2. The first months’ rental, any Tenant Installation Overrun (if applicable), the agrees deposit and/or bank guarantee and any other monies payable by the tenant prior to occupation, have been received, to the satisfaction of The Johannesburg Land Company (Pty) Limited, acting in its sole discretion; and

6.3. A Legally valid tax invoice in respect of the commission has been received by The Johannesburg Land Company (Pty) Limited.

6.4. No exclusive or sole mandates are given. The Johannesburg Land Company (Pty) limited reserves the right to amend, withdraw, and/or terminate its mandate to the broker at any time, acting in its sole discretion, and also reserves its right to;

6.4.1.       Withdraw any/all the lease premises listed in the vacancy schedule from the mandate; and/or

6.4.2.       Adjust the rentals and related charges from time to time.

6.4.3.       Should there be any extenuating circumstance, the Landlord reserves the right to negotiate the commission tariff payable on any transaction.

Difficulties can arise where prospective tenants’ direct enquiries through a number of agents. Recognition of introductions will lapse after 21 days unless we have confirmation of ongoing contact. The agent must accordingly keep in regular contact, and we would recommend that this be done by way of written status reports on all current enquiries.