Compensation from the property owner?

Question:

Can a firm working with a tenant receive compensation from the property owner in a commercial lease transaction after January 1, 2027?

Answer:

Yes. The compensation restrictions established by 2025 Wis. Act 69 apply only to transactions involving residential property containing one to four dwelling units. These restrictions do not apply to commercial lease transactions.

Therefore, in a commercial lease transaction, a firm working with a tenant may continue to receive compensation directly from the property owner for brokerage services. Unlike transactions involving residential property containing one to four dwelling units, the agreement to pay compensation does not need to be included in an offer to purchase or option to purchase.

Additionally, firms may continue to negotiate firm-to-firm compensation arrangements in commercial lease transactions, subject to applicable laws and agreements...   ...more