1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 The printed portions of this form have been approved, except differentiated additions, by the Colorado Real Estate Commission. (BDA55-4-05) THIS FORM HAS IMPORTANT LEGAL CONSEQUENCES AND THE PARTIES SHOULD CONSULT LEGAL AND TAX OR OTHER COUNSEL BEFORE SIGNING. DIFFERENT BROKERAGE RELATIONSHIPS ARE AVAILABLE WHICH INCLUDE LANDLORD AGENCY, TENANT AGENCY, BUYER AGENCY, SELLER AGENCY OR TRANSACTION-BROKERAGE. BROKERAGE DUTIES ADDENDUM TO PROPERTY MANAGEMENT AGREEMENT LANDLORD AGENCY TRANSACTION-BROKERAGE This Brokerage Duties Addendum (Addendum) is made a part of the agreement for the management and leasing of the Property known as (Property), which is dated , between Brokerage Firm and Landlord (Agreement). This Addendum supplements the Agreement. 1. BROKER AND BROKERAGE FIRM. a. Multiple-Person Firm. If this box is checked, the individual designated by Brokerage Firm to perform leasing services for Landlord is called Broker. If more than one individual is so designated, then references in this Addendum to Broker shall include all persons so designated, including substitute or additional brokers. The brokerage relationship exists only with Broker and does not extend to the employing broker, Brokerage Firm or to any other brokers employed or engaged by Brokerage Firm who are not so designated. b. One-Person Firm. If this box is checked, Broker is a real estate brokerage firm with only one licensed natural person. References to Broker or Brokerage Firm mean both the licensed natural person and brokerage firm who shall perform leasing services for Landlord. 2. DEFINED TERMS. a. Landlord: b. Brokerage Firm: c. Broker: shall act for or assist Landlord when performing leasing activities in the capacity as shown by the box checked at the top of this page 1. 3. BROKERAGE SERVICES AND DUTIES. Brokerage Firm, acting through Broker, shall provide brokerage services to Landlord. Broker, acting as either a Transaction-Broker or a Landlord’s Agent, shall perform the following Uniform Duties when working with Landlord: a. Broker will exercise reasonable skill and care for Landlord, including, but not limited to the following: (1) Performing the terms of any written or oral agreement with Landlord; BDA55-4-05 BROKERAGE DUTIES ADDENDUM Page 1 of 4 American LegalNet, Inc. www.USCourtForms.com 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 (2) (3) (4) (5) (6) b. Presenting all offers to and from Landlord in a timely manner regardless of whether the Property is subject to a lease or letter of intent to lease; Disclosing to Landlord adverse material facts actually known by Broker; Advising Landlord regarding the transaction and to obtain expert advice as to material matters about which Broker knows but the specifics of which are beyond the expertise of Broker; Accounting in a timely manner for all money and property received; and Keeping Landlord fully informed regarding the transaction. Broker shall not disclose the following information without the informed consent of Landlord: (1) (2) (3) (4) (5) That Landlord is willing to accept less than the asking lease rate for the Property; What Landlord’s motivating factors are to lease the Property; That Landlord will agree to lease terms other than those offered; Any material information about Landlord unless disclosure is required by law or failure to disclose such information would constitute fraud or dishonest dealing; or Any facts or suspicions regarding circumstances that could psychologically impact or stigmatize the Property. c. Landlord consents to Broker’s disclosure of Landlord’s confidential information to the supervising broker or designee for the purpose of proper supervision, provided such supervising broker or designee shall not further disclose such information without consent of Landlord, or use such information to the detriment of Landlord. d. Brokerage Firm may have agreements with other landlords to market and lease their property. Broker may show alternative properties not owned by Landlord to other prospective tenants and list competing properties for lease. e. If all or a portion of the Property is subject to a lease, or letter of intent to Lease, obtained by Broker, Broker shall not be obligated to seek additional offers to lease such portion of the Property. f. Broker has no duty to conduct an independent inspection of the Property for the benefit of tenant and has no duty to independently verify the accuracy or completeness of statements made by Landlord or independent inspectors. g. Landlord shall not be liable for the acts of Broker unless such acts are approved, 0directed or ratified by Landlord. 4. ADDITIONAL DUTIES OF LANDLORD'S AGENT. If the Landlord Agency box is checked, Broker is a limited agent of Landlord, with the following additional duties: a. fidelity. b. Promoting the interests of Landlord with the utmost good faith, loyalty and Seeking rental rates and terms that are acceptable to Landlord. BDA55-4-05 BROKERAGE DUTIES ADDENDUM Page 2 of 4 American LegalNet, Inc. www.USCourtForms.com 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 c. Counseling Landlord as to any material benefits or risks of a transaction that are actually known to Broker. 5. BROKERAGE RELATIONSHIP. a. If the Landlord Agency box at the top of page 1 is checked, Broker shall represent Landlord as a Landlord's Agent. If the Transaction-Brokerage box at the top of page 1 is checked, Broker shall act as a Transaction-Broker. b. In-Company Transaction – Different Brokers. When Landlord and tenant in a transaction are working with different brokers, those brokers continue to conduct themselves consistent with the brokerage relationships they have established. Landlord acknowledges that Brokerage Firm is allowed to offer and pay compensation to brokers within Brokerage Firm working with a tenant. c. In-Company Transaction – One Broker. working with the same broker, Broker shall function as: If Landlord and tenant are both (1) LANDLORD’S AGENT. If the Landlord Agency box at the top of page 1 is checked, the parties agree the following applies: Check One Box Only (a) Landlord Agency. If this box is checked, Broker shall represent Landlord as Landlord’s Agent and shall treat the tenant as a customer. A customer is a party to a transaction with whom Broker has no brokerage relationship. Broker shall disclose to such customer Broker's relationship with Landlord. (b) Landlord Agency Unless Brokerage Relationship with Both. If this box is checked, Broker shall represent Landlord as Landlord’s Agent and shall treat the tenant as a customer, unless Broker currently has or enters into an agency or TransactionBrokerage relationship with the tenant, in which case Broker shall act as a Transaction-Broker, performing the duties described in § 3 and facilitating lease transactions without being an advocate or agent for either party. (2) TRANSACTION-BROKER. If the Transaction-Brokerage box at the top of page 1 is checked, or in the event neither box is checked, the Broker shall work with the Landlord as a Transaction-Broker. If the Landlord and tenant are working with the same broker, Broker shall continue to function as a Transaction-Broker. 6. MATERIAL DEFECTS, DISCLOSURES AND INSPECTION. (a) Broker's Obligations. Colorado law requires a broker to disclose to any prospective tenant all adverse material facts actually known by such broker including but not limited to adverse material facts pertaining to the title to the Property, the physical condition of the Property, any material defects in the Property, and any environmental hazards affecting the Property required by law to be disclosed. These types of disclosures may include such matters as structural defects, soil conditions, violations of health, zoning or building laws, and nonconforming uses and zoning variances. Landlord agrees that any tenant may have the Property and Inclusions inspected and authorizes Broker to disclose any facts actually known by Broker about the Property. Broker shall not be obligated to conduct an independent investigation of the tenant's financial condition except as otherwise provided in the Agreement. BDA55-4-05 BROKERAGE DUTIES ADDENDUM Page 3 of 4 American LegalNet, Inc. www.USCourtForms.com 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 (b) Landlord’s Obligations. (1) Landlord's Property Disclosure Form. A landlord is not required by law to provide any particular disclosure form. However, disclosure of known material latent (not obvious) defects is required by law. Landlord Agrees Does Not Agree to provide a written disclosure of adverse matters regarding the Property completed to the best of Landlord's current, actual knowledge. (2) Lead-Based Paint. Unless exempt, if the improvements on the Property include one or more residential dwellings for which a building permit was issued prior to January 1, 1978, a completed Lead-Based Paint Disclosure (Rental) form must be signed by Landlord and the real estate licensees, and given to any potential tenant in a timely manner. 7. ADDITIONAL AMENDMENTS: Date: Date: Landlord Landlord Date: Broker Brokerage Firm's Name: BDA55-4-05 BROKERAGE DUTIES ADDENDUM Page 4 of 4 American LegalNet, Inc. www.USCourtForms.com