CASTLE HILLS CROSSING LEWISVILLE, TX
PRICING & FINANCIAL ANALYSIS
CASTLE HILLS CROSSING
FINANCIAL ANALYSIS
Castle Hills Crossing 4940 TX-121 Lewisville, TX 75056
Offering Summary Price Cap Rate Net Operating Income Price PSF Occupancy Gross Leasable Area Lot Size
$10,730,000 6.90% $740,336 $532.11 100% 2016
PROPERTY DESCRIPTION
Year Built
GRANITE PARK
20,165 SF 2.62 Acres
MARKET OVERVIEW This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE
2
PRICING & FINANCIAL ANALYSIS
CASTLE HILLS CROSSING
Expenses
Current
PSF
$120,990
$6.00
Insurance
$20,165
$1.00
CAM
$42,015
$2.08
$28,562
$1.42
$211,733
$10.50
PSF
(100%)
$731,326
$36.27
Real Estate Taxes
(0%)
$0
$0.00
$731,326
36.27
$120,990
$6.00
Insurance Reimb.
$20,165
$1.00
CAM Reimb.
$42,015
$2.08
Mgmt./Admin. Fee Reimb.
$37,572
$1.86
$220,743
$10.95
$952,069
$47.21
($120,990)
($6.00)
Insurance
($20,165)
($1.00)
CAM
($42,015)
($2.08)
($28,562)
($1.42)
($211,733)
($10.50)
Base Rent - Occupied Space Base Rent - Vacant Space GROSS POTENTIAL RENT Expense Reimbursements Real Estate Tax Reimb.
Total Expense Reimbursements EFFECTIVE GROSS REVENUE
Management Fee (% of GPI)
TOTAL EXPENSES
3.00%
PROPERTY DESCRIPTION
Current
FINANCIAL ANALYSIS
Income & Expenses
NOTE: The expense numbers provided are estimated due to the new construction nature of the asset.
Expenses Real Estate Taxes
Mgmt. Fee (% of GPI) Total Expenses
NET OPERATING INCOME
3.00%
$740,336 MARKET OVERVIEW This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE
3
RENT ROLL
CASTLE HILLS CROSSING
Sq Ft
% of Sq Ft
Start
End
Annual Rent
PSF
Escalation Date
Escalation Amount
Lease Type
100
Snappy Salad
2,300
11.4%
10/19/2016
10/31/2026
$87,400
$38.00
11/1/2021
$41.80
NNN
105
Tropical Smoothie Café
1,500
7.4%
10/15/2016
10/31/2026
$54,000
$36.00
11/1/2021
$39.50
NNN
110
Which Wich
1,500
7.4%
11/1/2016
10/31/2026
$52,500
$35.00
11/1/2021
$38.00
NNN
115
Ideal Dental
1,804
8.9%
10/19/2016
10/31/2026
$57,600
$31.93
11/1/2021
$32.93
NNN
120
In Fretta Urban Pizza Co.
2,500
12.4%
11/1/2016
10/31/2026
$92,500
$37.00
11/1/2021
$40.70
NNN
125
SmashBurger
2,200
10.9%
10/26/2016
10/31/2026
$81,400
$37.00
11/1/2021
$40.70
NNN
128
Cell Phone Repair
1,000
5.0%
1/1/2017
12/30/2026
$36,000
$36.00
1/1/2022
$39.60
NNN
133
Elements Massage
2,014
10.0%
12/1/2016
11/30/2026
$70,490
$35.00
12/1/2021
$38.50
NNN
140
Artisan Vapor
1,250
6.2%
6/1/2017
5/31/2027
$45,000
$36.00
6/1/2022
$39.60
NNN
143
Nail Salon
1,250
6.2%
6/1/207
5/30/2027
$46,250
$37.00
6/1/2022
$40.70
NNN
145
Bonchon
2,847
14.1%
11/12/2016
11/11/2026
$108,186
$38.00
12/1/2021
$42.00
NNN
Occupied
20,165
(100%)
0
(0.0%)
20,165
(100.0%)
Vacant Total
PROPERTY DESCRIPTION
Tenant
FINANCIAL ANALYSIS
Suite
$731,326
Lease Notes: Snappy Salad - 8% annual cumulative, compounded CAM cap; 4% Mgmt. Fee cap; Tenant pays 15% Admin. Fee Tropical Smoothie Café - 5% annual CAM cap; Tenant pays Mgmt. Fee plus 15% Admin. Fee Which Wich - 5% annual CAM cap; Tenant pays Mgmt. Fee plus 7% Admin. Fee Ideal Dental - 5% annual cumulative CAM cap; Tenant pays Mgmt. Fee plus 15% Admin. Fee In Fretta Urban Pizza Co. - 6% annual CAM cap; Tenant pays Mgmt. Fee plus 7% Admin. Fee SmashBurger- 5% annual CAM cap; Tenant pays Mgmt. Fee plus 15% Admin. Fee Cell Phone Repair - 5% annual CAM cap; Tenant pays Mgmt. Fee plus 8% Admin. Fee Elements Massage - 3% annual cumulative CAM cap; Tenant pays Mgmt. Fee plus 12% Admin. Fee Artisan Vapor - Tenant pays Mgmt. Fee plus 15% Admin. Fee Nail Salon - Tenant pays Mgmt. Fee plus 15% Admin. Fee Bonchon - Tenant pays Mgmt. Fee plus 15% Admin. Fee
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE
MARKET OVERVIEW
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.
4
TENANT INFORMATION
CASTLE HILLS CROSSING
Tenant Overview Tenant Ownership Years In Business
Headquarters Website
Which Wich Private 13 Years
PROPERTY DESCRIPTION
Number of Locations
400+ (U.S./International) Dallas, TX www.whichwich.com
Tenant Overview Tenant Ownership Years In Business Number of Locations Headquarters Website
MARKET OVERVIEW
Smashburger is an American fast-casual burger restaurant chain with more than 370 corporate and franchise outlets operating in 37 states and 9 countries. Smashburger offers 100% Certified Angus Beef burgers, chicken sandwiches, salads, sides, and shakes. The restaurant is named for the technique of smashing a ball of ground beef on a grill to “sear in the juices.”
FINANCIAL ANALYSIS
Founded by restaurateur Jeff Sinelli, CEO of Genghis Grill, in 2003, Which Wich began with one location in downtown Dallas. It began franchising in 2005. Which Wich Superior Sandwiches is an American fast casual restaurant chain specializing in sandwiches and salads. It has its headquarters in Downtown Dallas, Texas. It currently has over 400 operating units locations open in 37 states across the US, six locations in Mexico City, and locations in Guatemala City, Panama City, and Dubai.
Smashburger Private 10 Years 370+ Denver, CO www.smashburger.com
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE
5
TENANT INFORMATION
CASTLE HILLS CROSSING
Tenant Overview Tenant
Deca Dental
Ownership
Private
Years In Business
8 Years
Website
40+
PROPERTY DESCRIPTION
Number of Locations Headquarters
Dallas, TX www.decadental.com
Tenant Overview Tenant Ownership Years In Business Number of Locations Headquarters Website
Snappy Salads
MARKET OVERVIEW
Snappy Salads is a Texas chain of casual salad bar restaurants. Its purpose is to provide high quality healthy food made with fresh sustainably grown produce, from-scratch dressings, and preservative-free ingredients. Snappy Salads also aims to be “green” with tables made of salvaged wood, lighting that is energy-efficient, and containers made from recycled materials.
FINANCIAL ANALYSIS
In 2008, Dr. Ahmed opened his first dental office. His belief in putting patients first is the fundamental backbone in DECA Dental’s core values and patient care delivery model.Today Deca Dental has grown to over 35 dental offices with over 60 dentists and specialists serving their patients. Under Dr. Ahmed’s leadership DECA Dental has received many honors and awards. Some of the more notable ones are being recognized as Inc. Magazine’s Top 5000 fastest growing companies and being selected by D Magazine as Dallas-Fort worth’s Premier Dental Group. Additionally, the Dallas Business Journal recognized DECA Dental as one the top 100 companies in the region.
Private 12 Years 10+ Dallas, TX www.snappysalads.com
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE
6
INVESTMENT HIGHLIGHTS
CASTLE HILLS CROSSING
FINANCIAL ANALYSIS
• Newly Constructed, 100% Occupied 20,165 Sq Ft Neighborhood Strip in one of the Highest Growth Markets in the U.S. • Newly Signed Long-Term NNN Leases all with 10Year Terms
PROPERTY DESCRIPTION
• Dense Retail Area of North Dallas - Next to Berkshire Hathaway’s Recently Completed 1.8-Million Sq Ft Nebraska Furniture Mart and the Castle Hills Master-Planned Community • Located within 1.5 Miles of the Recently Completed and/or Under-Construction Toyota, Liberty Mutual, JP Morgan Chase and FedEx Headquarters • Adjacent to Kroger and Target Anchored Power Center - Tenants Include: PetSmart, Ulta, McDonald’s, Chili’s, 24 Hr Fitness, Studio Movie Grill and Bank of America as well as Many Others • Dense Residential and High Growth Area - 5-Mile Population Exceeds 203,000 a 71% Population Increase Since 2000
MARKET OVERVIEW
• Strong Demographics - Average Household Income is 1.5x the National Average within a 3-Mile Radius • Located Along Texas State Hwy 121 - Traffic Counts Exceed 120,000 Vehicles per Day
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE
7
TX
-1
21
LWAY N TOL AYBUR SAM R
SITE PLAN
CASTLE HILLS CROSSING
FINANCIAL ANALYSIS
SIGNED
2,200 SF
2,500 SF
1,500 SF 1,250 SF
PROPERTY DESCRIPTION
2,014 SF
2,300 SF
1,000 SF
1,804 SF
2,847 SF
1,500 SF
AT LEASE
LOI
WORKING
AVAILABLE
MARKET OVERVIEW This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE
9
AERIAL MAP
CASTLE HILLS CROSSING
FINANCIAL ANALYSIS
The Colony High School
The Colony Five Star Complex
PROPERTY DESCRIPTION
1
12 TX-
MARKET OVERVIEW This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE
10
LOCAL MAP
CASTLE HILLS CROSSING
FINANCIAL ANALYSIS
HEADQUARTERS
GRANITE PARK
PROPERTY DESCRIPTION
PLANO CAMPUS
MARKET OVERVIEW This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE
11
REGIONAL MAP
CASTLE HILLS CROSSING
FINANCIAL ANALYSIS
GRANITE PARK
PROPERTY DESCRIPTION MARKET OVERVIEW This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE
12
MARKET SUMMARY
CASTLE HILLS CROSSING
FINANCIAL ANALYSIS PROPERTY DESCRIPTION
DALLAS, TX Dallas encompasses half of the Dallas/Fort Worth Metroplex and is the third-largest city in Texas and the ninth-largest city in the United States. Dallas is home to the third-largest concentration of Fortune 500 companies in the country and is the largest economic center of the Dallas/Fort Worth metropolitan area. The Metroplex has strong submarket occupancy rates, is home to more shopping centers per capita and has one of the largest concentrations of corporate headquarters for publicly traded companies in the United States.
Dallas is the best-ranked city on the Regulatory Climate Index thanks to its efficient local regulations. Entrepreneurs and small businesses can expect a welcoming business environment across all five areas of local regulation. Dallas scores above average across each meaningful measure of an interaction that a business has with a local government agency through procedure, time, and cost. These rankings reflect the city’s continuing efforts to develop programs and initiatives to strengthen the business environment, provide access to capital, and encourage economic growth at the local level.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE
MARKET OVERVIEW
The city is the largest economic center of the 12-county Dallas–Fort Worth–Arlington metropolitan area, which had a population of 6,810,913 people as of July 1, 2013. The metropolitan economy is the sixth largest in the United States, with a 2012 real GDP of $420.34 billion. In 2013 the metropolitan area led the nation with the largest year-over-year increase in employment, and advanced to become the fourth-largest employment center in the nation (behind New York City, Los Angeles, and Chicago) with more than three million non-farm jobs. In the
latest rankings released in 2013, Dallas was rated as a “beta plus” world city by the Globalization and World Cities Study Group & Network. Dallas is also ranked 14th in world rankings of GDP by the Organization for Economic Co-operation and Development. The Dallas-Fort Worth Metroplex has one of the largest concentrations of corporate headquarters for publicly traded companies in the United States. The city of Dallas has 12 Fortune 500 companies, and the DFW region as a whole has 20.
13
DEMOGRAPHIC SUMMARY
CASTLE HILLS CROSSING
Geography: 5 miles
FINANCIAL ANALYSIS
Population In the identified area, the 2016 population was 203,732. The rate of change since 2000 was 71.18%. The five-year projection for the population in the area was 227,862 representing a change of 11.84% from 2016 to 2021. The 2016 population was 48.8% male and 51.2% female. The median age in this area was 35.2, compared to the U.S. median age of 38.0.
Households There were 79,653 households in your selected georgraphy in 2016. The number of households has changed by 76.39% since 2000. It is estimated that the number of households in your area will be 88,868 in 2021, which represents a change of 11.57% from the 2016. The average household size in your area was 2.55 persons.
Income PROPERTY DESCRIPTION
In 2016, the median household income for your selected georgraphy was $86,263, compared to the Entire U.S. average, which was $54,149. It is estimated that the median household income in your area will be $95,266 in 2021, which represents a change of 10.44% in five years. The per capita income in your area was $45,731, compared to the Entire U.S. average, which was $29,472. The 2016 average household income in your area was $116,314 compared to the Entire U.S. average, which was $77,008.
Race and Ethnicity The racial makeup of your selected area was as follows: 63.3% White, 11.2% Black, 0.5% Native American and 15.3% Asian/Pacific Islander. Compare these to the Entire U.S. Averages which were: 71.60% White, 12.70% Black, 0.18% Native American and 5.02% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin made up 17.5% of the population in your selected area. Compare this to the Entire U.S. average of 17.9%.
Housing MARKET OVERVIEW
In 2016, there were 42,443 owner occupied housing units in your area and there were 37,210 renter occupied housing units in your area. Median home value in the area was $272,290, compared to a median home value of $198,891 for the U.S.
Employment In 2016, there were 113,186 employees in your selected area, this is also known as the daytime population. 75.8% of employees were employed in white-collar occupations in this geography, and 10.4% were employed in blue-collar occupations. In 2016, unemployment in this area is 3.2%. Demographic data Š 2016 esri This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2017 STRIVE
14
DEMOGRAPHIC STATISTICS
CASTLE HILLS CROSSING 1 Mile
3 Miles
5 Miles
Income
1 Mile
3 Miles
5 Miles
2000 Population
3,426
40,405
119,014
$ 0 - $14,999
5.7%
4.4%
5.7%
2010 Population
4,500
64,579
174,360
$ 15,000 - $24,999
7.7%
4.6%
5.5%
2016 Population
5,280
76,750
203,732
$ 25,000 - $34,999
7.0%
6.7%
7.0%
2021 Population
5,898
86,525
227,862
$ 35,000 - $49,999
9.2%
9.4%
10.0%
$ 50,000 - $74,999
20.5%
14.3%
15.4%
$ 75,000 - $99,999
22.2%
12.9%
12.4%
$100,000 - $149,999
20.4%
22.7%
20.4%
3.7%
10.9%
10.3%
1 Mile
3 Miles
5 Miles
$200,000 +
3.6%
14.0%
13.3%
2000 Households
1,130
13,743
45,157
2016 Median Household Income
$74,809
$94,507
$86,263
2010 Households
1,558
1,558
68,505
2016 Per Capita Income
$30,048
$44,993
$45,731
2016 Households
1,850
28,406
79,653
2016 Average Household Income
$83,508
$120,913
$116,314
2021 Households
2,063
31,998
88,868
2016 Daytime Population
3,107
42,577
113,185
2016 Average Household Size
2.85
2.69
2.55
2010 Owner Occupied Housing Units
59.6%
62.9%
52.7%
2010 Renter Occupied Housing Units
36.3%
30.7%
40.8%
4.1%
6.4%
6.5%
2016 Owner Occupied Housing Units
54.4%
58.6%
49.8%
2016 Renter Occupied Housing Units
41.5%
35.4%
43.7%
4.1%
6.1%
6.5%
2021 Owner Occupied Housing Units
54.3%
57.2%
49.0%
2021 Renter Occupied Housing Units
41.7%
36.8%
44.6%
2021 Vacant
4.0%
6.0%
6.5%
2010 Vacant
2016 Vacant
PROPERTY DESCRIPTION
$150,000 - $199,999 Households
FINANCIAL ANALYSIS
Population
Traffic Counts
121,000
MARKET OVERVIEW
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2017 STRIVE
15
CONFIDENTIALITY AGREEMENT The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from STRIVE and it should not be made available to any other person or entity without the written consent of STRIVE. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to STRIVE. This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. STRIVE has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, STRIVE has not verified, and will not verify, any of the information contained herein, nor has STRIVE conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT STRIVE AGENT FOR MORE DETAILS.
Net Lease Disclaimer STRIVE hereby advises all prospective purchasers of Net Leased property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, STRIVE has not and will not verify any of this information, nor has STRIVE conducted any investigation regarding these matters. STRIVE makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. STRIVE expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property. By accepting this Marketing Brochure you agree to release STRIVE and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.
Approved by the Texas Real Estate Commission for Voluntary Use Texas law requires all real estate licensees to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.
B
Information About Brokerage Services
efore working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents. If you are a prospective seller or landlord (owner) or a prospective buyer or tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner’s agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker who acts as a buyer’s agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing. A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing you. A broker is obligated by law to treat you honestly. IF THE BROKER REPRESENTS THE OWNER: The broker becomes the owner’s agent by entering into an agreement with the owner, usually through a written - listing agreement, or by agreeing to act as a subagent by accepting an offer of subagency from the listing broker. A subagent may work in a different real estate office. A listing broker or subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner’s agent anything the buyer would not want the owner to know because an owner’s agent must disclose to the owner any material information known to the agent. IF THE BROKER REPRESENTS THE BUYER: The broker becomes the buyer’s agent by entering into an agreement to represent the buyer, usually through a written buyer representation agreement. A buyer’s agent can assist the owner but does not represent the owner and must place the interests of the buyer first. The owner should not tell a buyer’s agent anything the owner would not want the buyer to know because a buyer’s agent must disclose to the buyer any material information known to the agent. IF THE BROKER ACTS AS AN INTERMEDIARY: A broker may act as an intermediary between the parties if the broker complies with The Texas Real Estate License Act. The broker must obtain
the written consent of each party to the transaction to act as an intermediary. The written consent must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. The broker is required to treat each party honestly and fairly and to comply with The Texas Real Estate License Act. A broker who acts as an intermediary in a transaction: (1) shall treat all parties honestly; (2) may not disclose that the owner will accept a price less than the asking price unless authorized in writing to do so by the owner; (3) may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writing to do so by the buyer; and (4) may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by The Texas Real Estate License Act or a court order or if the information materially relates to the condition of the property. With the parties’ consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under The Texas Real Estate License Act and associated with the broker to communicate with and carry out instructions of one party and another person who is licensed under that Act and associated with the broker to communicate with and carry out instructions of the other party. If you choose to have a broker represent you, you should enter into a written agreement with the broker that clearly establishes the broker’s obligations and your obligations. The agreement should state how and by whom the broker will be paid. You have the right to choose the type of representation, if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If you have any questions regarding the duties and responsibilities of the broker, you should resolve those questions before proceeding.
Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee’s records.
exclusively listed 469.844.8880 | STRIVERE.COM