Related Articles: Commercial Landlord

This article is intended to provide general information on Virginia law, and is not intended to be relied upon as a substitute for legal advice for specific situations.

Leasing Agent's Commissions - Payment Under New Ownership
When a new owner acquires a building, the leases are generally assigned to the new owner. Thus, the new owner assumes the obligations of those leases, which may include commissions to be paid to leasing agents. In Pollard v. Pierce Arrow (a 1999 Virginia Supreme Court case) a new owner, who had hired a different leasing agent, learned that it was still obligated to the original leasing agent for renewals and extensions or existing leases. ADVICE TO OWNERS: Review all existing leases and other agreements for any obligations to leasing agents and other vendors. Consider including exceptions for such obligations in the new agent's agreements, so the landlord will not have to pay twice.

ADVICE TO AGENTS: Be sure that you include language in the leases you write which reserves your rights to commissions from tenants you procured in the event of a sale of the building.