Commission on Long Term Lease

RightTurnClyde

What's the story with the commission on a 5 yr lease. I'm the highest bidder on 40 acres. The mart that auctioned it is looking for 5% commission from both me and the seller each year for the next 5 years.
It's a new one on me and on the landlord, is this the norm.?
I would have thought it would be a once off 5% from both parties at most

Nekarsulm

One off fee.
It's only been rented for 1 term.
The fact that the term is 5 years is irrelevant.

They have no further involvement with the lease once it's signed. (unless the lessor has a break clause inserted at the 3 year mark for a rent review. This is common enough, especially if entitlements are involved.)

blue5000

I'd be inclined to agree with you 5% for one year is enough.

Keepgrowing

RightTurnClyde wrote: »

What's the story with the commission on a 5 yr lease. I'm the highest bidder on 40 acres. The mart that auctioned it is looking for 5% commission from both me and the seller each year for the next 5 years.
It's a new one on me and on the landlord, is this the norm.?
I would have thought it would be a once off 5% from both parties at most

Lease, landlord pays commission not you
11 mths, you pay not landlord

They're chancing their arms

RightTurnClyde

Everyone,, thanks for the replies.
I'll let ye know now I get on.
Fcuking chancer

zetor 4911

The landlord pays the commission in both the lease and 11 months not the tenant. In the case of a lease the auctioneer collects the money from the tenant at the end of each year of the lease so they usually charge the commission every year as well.