Property Management
In South Dakota, a 'lease renewal commission' is typically earned when:
AA tenant renews their lease for any period
BA property manager successfully negotiates a lease renewal with an existing tenant, per the management agreement terms✓ Correct
CThe management fee is automatically renewed each year
DThe landlord receives the full year's rent upfront
Explanation
Lease renewal commissions (if provided for in the management agreement) compensate the property manager for successfully retaining existing tenants through lease renewals, which benefit the owner.
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Key Terms to Know
Purchase Agreement
A legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Math Concepts
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