Rising Tides Property Trust wishes to mandate various brokers to attend to the sourcing of suitable tenants for, and letting of, vacant premises within the portfolio.
The terms of the leasing mandate are set out below:
1. This leasing mandate replaces the terms and conditions of any previous verbal and/or written mandate and shall only apply to the vacant premises at the properties set out in our Vacancy Schedule.
2. Your mandate is not exclusive and you are not the sole agent.
3. You are not permitted to erect any broker’s and/or marketing boards on or outside the properties without prior written consent by the landlord. We subscribe to the guidelines set out by SAPOA which states:
- Size – maximum 2m x 1,5m
- Number of boards per property – The current bylaws only permit one per property but we have requested a relaxation to five for Industrial properties and two for all other properties.
- No boards on municipal property – The bylaws state that the boards may not extend by more than 150mm onto council property.
- No pictures on boards, other than development boards which require special consent.
- Landlord authority – No boards should be erected without authority from the landlord.
4. This mandate to secure tenants shall not prohibit or prevent Rising Tides Property Trust from sourcing tenants using their own resources.
5. Upon introduction of a prospective tenant by you, the prospective tenant will be required to complete and sign an Application to Lease and return it to the managing agents together with FICA documentation. After screening, the managing agent will provide you with an offer to lease to submit to the prospective tenant.
6. It is expected that brokers themselves are actively involved in each deal, from inception & first appointment to final signature of the lease agreement.
7. All offers to lease signed by the prospective tenant, must be submitted in writing and must include an expiry date by which the offer must be accepted by the landlord.
8. The managing agent and/or the landlord shall screen all written offers to lease and prospective tenants, and shall not necessarily accept any offer received for vacant premises at the properties.
9. Commission is payable based on gross rental only and once the following criteria have been met:
- After the lease agreement (including annexures) has been signed by both parties.
- After all suspensive conditions (if any) concerning the lease have been met. Such conditions include the payment of the deposit or the acceptance of a bank guarantee, lease fees and the first month’s rental.
- On receipt of an original tax invoice detailing the commission calculation breakdown.
10. It shall be calculated on the following basis:
- 5% on the first two (2) years’ gross rental.
- 2,5% on the next three (3) years’ gross rental.
- 1,5% on the next three (3) years’ gross rental.
- 1% on gross rental for the balance.
- Gross rental shall include basic rental, parking rental and municipal rates.
- Commission on short-term leases shall be calculated based on the above rates. No minimum commission shall aply.
- All calculations shall exclude VAT payable by the tenant.
11. No commission shall be payable in the case of:
- Any additional space taken by the tenant at the particular property after conclusion of the signed lease.
- Any renewal or exercising of any option to renew on the expiry of the original lease agreement.
- The conclusion of a new lease agreement with an existing occupier of leased premises on the expiry of the original lease.
- Any additional monies payable by the tenant (utilities, amortisations, etc).
- Any sale of the leased premises or property by the landlord to the tenant.
- Unknown rental such as turnover rental and unknown future escalated rental.
12. Your appointment as a Broker is on the condition and clear understanding that the landlord and/or the managing agent will only pay one commission for any particular letting transaction and such commission will only be payable to the Broker who made the largest contribution to a lease being concluded and who submitted a signed offer to lease. You are therefore not entitled to a commission simply because you introduced a willing and able tenant who concluded a lease agreement with the Landlord.
13. This mandate may be terminated with immediate effect by written notice.
14. Any variation to these conditions must be agreed in writing and signed between the managing agent or landlord and the broker.
15. Where a lease agreement is concluded between RTPT and a tenant and the tenant:
- Is declared insolvent or liquidated within a period of twelve (12) months from the commencement date of a lease and/or
- Defaults on payment within a period of 12 (twelve) months from the commencement date of a lease causing the Landlord to cancel the agreement of lease
- The landlord reserves the right to claim back any commission or part thereof paid to the Property Broker.
Download Broker Mandate PDF