The New Jersey rule: put it in writing
Under N.J.S.A. 25:1-16, a real estate broker cannot recover a commission unless the agreement to pay it is in writing and signed by the party to be charged, with limited exceptions set out in the statute. Read the statute
What a listing agreement should spell out
How the commission is calculated for a lease (for example, over the lease term) or a sale (for example, on the price).
Who pays, when it is earned (signing, occupancy or closing) and how it is paid.
Whether a cooperating tenant or buyer broker is paid, and how the fee is split.
Exclusive term, renewal and expansion terms, and a tail period after the agreement ends.
Any exclusions, such as a tenant you are already talking to.
Exclusive right vs. open listings
With an exclusive right to lease or sell, one broker earns the fee on any deal during the term. An open listing lets several brokers compete and pays only the one who brings the deal. Exclusive listings usually get more marketing effort.
AcreX fees
AcreX explains its fee structure in a consultation. We do not publish typical commission percentages because each assignment is different.
Frequently asked questions
Do commercial brokers in NJ need a written commission agreement?
Yes. N.J.S.A. 25:1-16 generally makes a broker’s commission agreement unenforceable unless it is in writing and signed.
Who pays the broker when I lease my building?
It depends on the listing agreement you sign. In New Jersey a broker can only enforce a commission agreement that is in writing (N.J.S.A. 25:1-16), so the fee, who pays it and when it is earned should all be spelled out before marketing starts. AcreX explains its fee structure in the consultation.
How much do commercial real estate brokers charge?
Fees vary by deal size, type and services. Ask for the full fee, who pays it and when it is earned, in writing, before marketing starts.
Talk to AcreX
Book a consultation with Jonathan Libock · Call (201) 694-6463 · AcreX Commercial Real Estate, 307 Bloomfield Ave, Caldwell, NJ 07006
