This form is used by a commercial broker when presently retained under a Tenant Representation Agreement by entities seeking to acquire a leasehold or fee interest in property, to extend the period of representation.
Broker representation forms for prospective commercial tenants
As of January 2025, a buyer broker is required to enter into a written employment agreement with their buyer-client when, in expectation of earning a fee, they assist the buyer to locate property available for sale. [Calif. Civil Code §1670.50]
These agreements are commonly referred to as a buyer representation agreement, or BRA for short. [See RPI Form 103.1 and 103.2]
Representation agreements are not solely for buyer brokers who expect a fee when they locate property for a buyer. Seller brokers must continue to enter into seller representation agreements with their seller-clients. Without documentation of the representation, the seller broker cannot enforce collection of a fee earned for marketing the seller’s property for sale. [See RPI Form 102]
Likewise, a broker may assist tenants in expectation of earning a fee, particularly commercial tenants, to locate space for occupancy periods greater than one year and negotiate terms, conditions and pricing suitable to their tenant.
Here, the tenant broker uses a tenant representation agreement to document the period of employment and conditions for earning their fee. [See RPI Form 105.1 and 105.2]
Individual vs. entity clients
The tenant representation agreement employing a broker to acquire a leasehold interest in a property is the leasing equivalent to the buyer representation agreement to acquire a fee interest.
Like the buyer representation agreement, the tenant representation agreement involves a set of two forms, distinguished by whether the tenant-client is an:
- individual [See RPI Form 105.1]; or
- entity. [See RPI Form 105.2]
An entity client includes:
- corporations;
- real estate investment trusts (REITs);
- limited liability companies (LLCs); and
- partnerships.
The retainer period for tenant representation agreements differs depending upon what kind of tenant-client is involved (individual or entity). Thus, two different forms best distinguish the two rules for retainer periods, for both the initial representation period and the renewal or modification of the representation period.
The retainer period for tenants who are individuals may not run longer than three months from the date the agreement is signed. [CC §1670.50(d)(1)]
However, when the tenant is an entity, the retainer period may be for whatever duration the broker and tenant-client negotiate. [CC §1670.50(d)(1)]
For an individual tenant who agrees to renew the representation, the tenant broker uses a Renewal of Tenant Representation Agreement form. [See RPI Form 105.1A]
For an entity tenant agreeing to modify the expiration of the retainer period, the tenant broker uses a Modification of Tenant Representation Agreement form. [See RPI Form 105.2A]
Renewal and modification of tenant representation agreement
A commercial tenant broker presently representing an individual under a tenant representation agreement uses the Renewal of Tenant Representation Agreement form to continue representing the client. It renews the representation agreement, setting the new retainer period as limited from the date of the renewal agreement. [See RPI Form 105.1A]
A commercial tenant broker presently representing an entity under a tenant representation agreement uses the Modification of Tenant Representation Agreement form to continue the representation. It modifies the existing representation agreement by extending its period of representation. [See RPI Form 105.2A]
Both renewal and modification forms contain the following provisions:
- date of renewal or modification;
- the tenant and broker names; and
- the type of property sought. [See RPI Form 105.1A and 105.2A §1]
The renewal for individuals contains:
- a retainer-period termination date, no greater than three months from the date the renewal is entered into; and
- any modifications to the tenant representation agreement. [See RPI Form 105.1A §2]
The modification for entities contains:
- the extended termination date of the tenant representation agreement as negotiated; and
- any modifications to the tenant representation agreement. [See RPI Form 105.2A §2]
Both forms require signatures of the tenant broker and tenant-client to be enforceable.
Form navigation page published 04-2025.
Form published 2025.
