Where Term is Six Months or less:
Where Term is more than Six Months and does not exceed One Year:
Rule 2. Where the term is more than six (6) months and does not exceed one (1) year, charge six per cent (6%) on an amount equal to one (1) year's rental. (See Rule 3.)
If Monthly Rentals are not Uniform:
Rule 3. If the monthly rentals are not uniform throughout the entire term of any lease coming under the provisions of Rules 1 and 2, the average monthly-rental for the actual period of the lease shall be used as the basis for computation.
Where Terms exceed One Year:
Rule 4. Where a term exceeds one (1) year, use as a basis charge, six per cent (6%) and add for each six (6) months or fraction thereof over one (1) year, one-half (1/2) of one per cent (1%), which rate shall be figured on one (1) average year's rental of the entire term.
What to Charge if Lease calls for a Net Rental:
Rule 5. In figuring commissions to be charged on leases where the rental to be received by the Lessor is net, that is to say, where the Lessee agrees to pay taxes and fire insurance premiums, in addition to the rental named in the lease, charge two per cent (2%) of the term rental.
When Lease contains Privilege of Renewal:
Rule 6. When the lease gives the Lessee a privilege of renewal, the charge shall be made for the actual term of the lease. If the Lessee later avails himself of the privilege of renewal, whether strictly according to the terms expressed in the lease or not, the agent shall also be entitled to a commission on the extended period. This additional commission shall be the difference between the amount of commission due for the entire term, including the extended period and the amount of commission previously paid. The additional commission shall be paid the agent at the time of renewal.
Where Renewal of Lease is Negotiated by Agent:
Rule 7. Where renewals of leases are negotiated and the agent does not collect the rent, he shall charge the regular rates prescribed in this Section, the same as if the leases were negotiated with new tenants.
Minimum Charge of Leasing Residence Property:
Rule 8. The minimum charge to be made in any case for leasing residence property shall be Ten Dollars ($10).
Where the Lease contains Option to Purchase:
Rule p. Should there be a clause in the lease giving the Lessee an option to purchase the property demised, whether or not the purchase is made exactly on the terms stipulated in the lease, the owner shall pay the agent who negotiated the lease, three per cent (3%) on the purchase price, to be paid when the sale is closed, after deducting from the said commission on the sale the unexpired commission already paid, for the negotiation of the lease. (See Rule 35, Sec. 5.)
Charges for negotiating leases which contemplate the erection of new buildings.
Where Lease contemplates Erection of New Building:
Rule 10. The charge for negotiating leases which contemplate the erection of a building for a tenant, shall be three per cent (3%) on the value of the land as calculated in the making of the lease, and three per cent (3%) on the cost of the proposed building and appurtenances.
Charges for procuring tenants under the conditions mentioned in the foregoing Sections 1 and 2 are to be made at the rates stipulated, unless there shall have been a previous agreement between the owner and the agent for the collection of rent.
Rule II. The regular rate of commission for renting and collection of rents shall be six per cent (6%).
Charges on Disbursements:
Rule 12. In the management of property under this section the agent shall be entitled to charge on disbursements as follows, to-wit: On amounts paid out for taxes on improved property one per cent (1%), and on unimproved property two and one-half per cent (2 1/2%), no charge to be less than One Dollar ($1). Members shall have the right to charge for special services not contemplated under ordinary agency.
Rule 13. For negotiating new leases and for the renewals of old leases the charge shall be in accordance with the circumstances and services performed, and shall be in addition to the amount expended for advertising.
When Collection of Rents is Withdrawn:
Rule 14. Where the collection of rents on property is withdrawn from an agent, such agent shall be entitled to charge for unexpired term of any leases he may have made or renewed during his agency, at the rates specified in Section 1 of Article 1 hereof.
Agents may take Management on Other Basis:
Rule 15. Agents may take the management of buildings and charge the regular Board Rate for making new leases as prescribed in Sections 1 and 2 hereof, and in their discretion reduce the charge hereinbefore provided in this section for renting and collecting. This policy is recommended to members for the reason that it places them in position to pay commissions to other brokers, who may assist them in making leases.
Rule 16. For transferring or assigning leases the charge shall be in proportion to the service rendered, but in no event shall same be less than Five Dollars ($5) for leases on residence property and Fifteen Dollars ($15) for leases on business property.