Page 1

PORT ARTHUR CORNERS PORT ARTHUR, TX


PRICING & FINANCIAL ANALYSIS

PORT ARTHUR CORNERS

FINANCIAL ANALYSIS

Port Arthur Corners 4997 Twin City Hwy Port Arthur, TX 77642

Offering Summary Price Cap Rate Net Operating Income Price PSF Occupancy Year Built

$3,225,000 8.35% $269,131 $115.40 81% 2006

27,946 SF

Lot Size

2.76 Acres

PROPERTY DESCRIPTION

Gross Leasable Area

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. © 2015 Vitorino Group

2


PRICING & FINANCIAL ANALYSIS

PSF

Expenses

(80.7%)

$284,777

$10.19

(0%)

$0

$0.00

$284,777

$10.19

Base Rent - Vacant Space GROSS POTENTAL RENT Exp. Reimb.

Current

PSF

Real Estate Taxes

$36,050

$1.29

Insurance

$12,639

$0.45

Cleaning

$653

$0.02

CAM

$29,103

$1.04

Trash

$568

$0.02

Insurance

$10,204

$0.37

Building Services

$2,154

$0.08

CAM

$15,608

$0.56

Fire Safety

$1,684

$0.06

Mgmt. Fee

$7,889

$0.28

Utilities

$4,766

$0.17

$62,803

$2.25

Landscaping

$4,151

$0.15

$347,581

$12.44

Parking Lot Sweeping

$5,358

$0.19

$0

$0.00

$19,333

$0.69

$347,581

$12.44

$10,427

$0.37

$78,450

$2.81

GROSS POTENTIAL INCOME Vacancy Factor (economic)

0.00%

EFFECTIVE GROSS INCOME Real Estate Taxes

($36,050)

($1.29)

Insurance

($12,639)

($0.45)

CAM

($19,333)

($0.69)

($10,427)

($0.37)

($78,450)

($2.81)

Total Expenses

NET OPERATING INCOME

Management Fee (% of GPI)

TOTAL EXPENSES

Expenses

Mgmt. Fee (% of GPI)

Total CAM

3.00%

3.00%

PROPERTY DESCRIPTION

Real Estate Taxes

Total Exp. Reimb.

FINANCIAL ANALYSIS

Current

Income & Expenses Base Rent - Occupied Space

PORT ARTHUR CORNERS

$269,131 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. © 2015 Vitorino Group

3


RENT ROLL

PORT ARTHUR CORNERS

% of Sq Ft

Start

End

Annual Rent

PSF

Escalation Date

Escalation Amount

Options

Lease Type

Game Stop

2,000

7.2%

9/27/2012

9/30/2017

$18,500

$9.25

-

-

-

NNN

Nail Depot

966

3.5%

6/1/2009

5/31/2017

$19,745

$20.44

6/1/2017

$22.89

1x3

NNN

Cato-Its Fashion

3,195

11.4%

5/2/2006

1/31/2021

$19,170

$6.00

-

-

-

NNN

PortArthur Smiles

2,500

8.9%

8/9/2013

11/30/2023

$42,512

$17.00

12/1/2023

$19.80

2x5

NNN

JP Morgan/Chase

2,500

8.9%

11/13/2008

11/30/2018

$46,750

$18.70

12/1/2018

$20.57

3x5

NNN

Check N Go

1,400

5.0%

6/29/2006

6/30/2017

$26,600

$19.00

-

-

-

NNN

9,000

32.2%

2/1/2016

12/31/2025

$94,500

$10.50

1/1/2026

FMV

2x5

NNN

Port Arthur Smiles Expansion

1,000

3.6%

3/1/2017

11/30/2023

$17,000

$17.00

-

-

-

NNN

Vacant

1,528

5.5%

-

-

-

-

-

-

-

-

Vacant

1,200

4.3%

-

-

-

-

-

-

-

-

Vacant

2,657

9.5%

-

-

-

-

-

-

-

-

Occupied

22,561

80.7%

Vacant

5,385

19.3%

Total

27,946

100.0%

CSL Plasma (1)

PROPERTY DESCRIPTION

Sq Ft

FINANCIAL ANALYSIS

Tenant

$284,777

NOTE: (1) Port Arthur Smiles is expanding by 1,000SF into the adjacent space; estimated rent commencement date is 3/1/17.

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. © 2015 Vitorino Group

4


TENANT INFORMATION

PORT ARTHUR CORNERS

Tenant Ownership Years In Business Number of Locations Headquarters Website

GameStop Public 31 Years 6,627 Grapevine, TX www.gamestop.com

Tenant Overview Tenant Ownership Years In Business

JPMorgan Chase

MARKET OVERVIEW

JPMorgan Chase & Co. is an American multinational banking and financial services holding company headquartered in New York City. It is the largest bank in the United States, and the world’s sixth largest bank by total assets, with total assets of US $2.6 trillion. It is a major provider of financial services, and according to Forbes magazine is the world’s third largest public company based on a composite ranking. The hedge fund unit of JPMorgan Chase is the second largest hedge fund in the United States. The company was formed in 2000, when Chase Manhattan Corporation merged with J.P. Morgan & Co.

Tenant Overview

PROPERTY DESCRIPTION

GameStop is divided into two operating segments: Video Game Brands and Technology Brands. The Technology Brands was created during the fourth quarter of 2013, and houses the companies Simply Mac, Spring Mobile, and Aio Wireless business. As of April 2014, the Technology Brands segment included 218 retail outlets. GameStop’s Video Game Brands includes the company’s other businesses such as video game and consumer electronics retail shops; Kongregate, a digital video game distribution site; and buymytronics.com, a consumer electronics marketplace. Pre-owned and value video games accounted for 47% of GameStop’s gross revenue for the fiscal year ending February 2014.

FINANCIAL ANALYSIS

GameStop Corporation, simply referred to as GameStop, is an American video game, consumer electronics, and wireless services retailer. The company is headquartered in Grapevine, Texas, United States, and operates 6,457 retail stores throughout the United States, Canada, Australia, New Zealand, and Europe. The company’s retail stores primarily operate under the GameStop, EB Games, and Micromania brands.

Public 15 Years

Number of Locations Headquarters Website

New York, NY wwwjpmorganchase.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. © 2015 Vitorino Group

5


TENANT INFORMATION

PORT ARTHUR CORNERS

Tenant Overview

After providing dependable financial services for almost 15 years, Check `n Go stands out today as a prominent leader in the payday loan industry. Check ‘n Go currently operates more than 1,000 stores in 31 states, their team includes over 3,200 Check `n Go employees.

Years In Business

Ownership Years In Business Number of Locations Headquarters Website

Tenant Ownership Number of Locations Headquarters Website

Cato Public 69 Years 1,000 Charlotte, NC www.catofashions.com

Check ‘n Go

MARKET OVERVIEW

Check `n Go first opened its doors for business in 1994 in Covington, Kentucky. The beginnings were humble, and as a very hands-on, familyowned business, rooted in providing supreme customer service through customer-focused leadership principles.

Tenant

PROPERTY DESCRIPTION

Tenant Overview

FINANCIAL ANALYSIS

Cato Corporation is an American retailer of women’s fashions and accessories. The Company operates stores that are located throughout the United States, and in a variety of markets ranging from small towns to metropolitan areas. The Cato Corporation (Cato) operates the stores under several names including Cato, Cato Fashions, Cato Plus,It’s Fashion, It’s Fashion Metro, as well as the newest addition, Versona Accessories. The Company’s stores includes a variety of clothes such as dressy, career, and casual sportswear, dresses, coats, shoes, lingerie, costume jewelry, handbags, men’s wear and lines for kids and newborns. These products are produced by various vendors in accordance with the Company’s specifications, but generally are sold under its private label. For customers’ convenience, the company provides the credit service via offering its own credit cards.

Private 21 Years 1,000+ Cincinnati, OH www.checkngo.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. © 2015 Vitorino Group

6


TENANT INFORMATION

PORT ARTHUR CORNERS

CSL Plasma has more than 120 plasma collection centres in the US and Europe, along with plasma testing laboratories and logistics centres in both countries. One of the largest collectors of human blood plasma in the world, CSL Plasma sources the plasma required through its plasma collection operations and commercial purchases.

Ownership

Globally, hundreds of thousands of donors provide the plasma used to produce a range of life-saving products for critically ill patients. CSL Plasma offers a reliable and secure source of plasma for those essential medications.

Tenant Years In Business Number of Locations Headquarters Website

CSL Plasma Public 100 Years 120+

PROPERTY DESCRIPTION

Tenant Overview

FINANCIAL ANALYSIS

CSL Plasma, headquartered in Boca Raton, US, is a division of CSL Behring, a plasma protein biotherapies company headquartered in King of Prussia, US.

Boca Raton, FL www.csl.com.au

CSL Plasma utilises the most sophisticated production methods available and meets or exceeds stringent international safety and quality standards. Each step of our manufacturing process – from plasma donor to patient – reflects CSL’s unyielding commitment to ensuring its products are safe and effective.

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. © 2015 Vitorino Group

7


INVESTMENT HIGHLIGHTS

PORT ARTHUR CORNERS

FINANCIAL ANALYSIS

• Walmart Supercenter Shadowed Anchor Property • Located in the Hub of the US Petrochemical Import/ Export Distribution Region New

International

Corporate

Tenant

PROPERTY DESCRIPTION

• Brand

Occupying One-Third of the Property on a LongTerm Lease • Significant Upside Potential Through the Lease-Up of Existing Vacancy • Well Below Market Pricing at $115 Price Per Square Feet • Occupied Predominately by National Credit NNN Tenants at Below Market Rents With Significant

MARKET OVERVIEW

Remaining Terms

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. © 2015 Vitorino Group

8


SITE PLAN

PORT ARTHUR CORNERS

•.

•, •,

.

"

FINANCIAL ANALYSIS

/ / /

'

/ I

/ / / /

/

/ /

/ /

/ / /

/ / / / / / /

PROPERTY DESCRIPTION

/ / / /

MARKET OVERVIEW

_..,_ T

J

fASEWH.tC R ll P " .lll 11 0

ACCE

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. © 2015 Vitorino Group

9


AERIAL MAP

PORT ARTHUR CORNERS

FINANCIAL ANALYSIS PROPERTY DESCRIPTION MARKET OVERVIEW

Memorial High School

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 2015 Vitorino Group

10


LOCAL MAP

PORT ARTHUR CORNERS

FINANCIAL ANALYSIS 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. Š 2015 Vitorino Group

11


REGIONAL MAP

PORT ARTHUR CORNERS

FINANCIAL ANALYSIS 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. Š 2015 Vitorino Group

12


MARKET SUMMARY

PORT ARTHUR CORNERS

FINANCIAL ANALYSIS PROPERTY DESCRIPTION

BEAUMONT, TX Beaumont home. For example, Gulf States Utilities had its headquarters in Beaumont until its absorption by Entergy Corporation in 1993. GSU’s Edison Plaza headquarters is still the tallest building in Beaumont (as of 2011). With Spindletop, several energy companies developed in Beaumont, and some continue.

Beaumont is the birthplace of Spindletop, the largest oil discovery in Texas, that jumpstarted Texas’ transformation into a major petroleum producer and industrial power.

A significant element of the region’s economy is the Port of Beaumont, the nation’s fourth largest seaport by tonnage. The 842d Transportation Battalion, and the 596th Transportation Group are both stationed at the port in Beaumont.

Beaumont is home of Lamar University, a national Carnegie Doctoral Research university. Home to more than 14,000 students, Lamar University sits on a 270-acre campus just a short drive from Beaumont’s downtown museum and entertainment district. Lamar University offers more than 100 programs of study leading to bachelor’s, master’s and doctoral degrees.

MARKET OVERVIEW

Beaumont is located in southeast Texas along the Texas/Louisiana border, near the Gulf of Mexico and about 90 miles from Houston. Locals commonly refer to this area as the Golden Triangle, referencing the larger cities in our region - Beaumont, Port Arthur and Orange. Smaller cities include Port Neches, Nederland, Groves, Vidor and Bridge City.

In addition to companies doing business within the city limits, several large industrial facilities are located within the city’s five mile extraterritorial jurisdiction boundaries including the ExxonMobil Beaumont refinery and chemical plants, Goodyear Beaumont chemical plant, and DuPont chemical plant. Jason’s Deli has its headquarters in Beaumont.

Over the years, several corporations have called

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. © 2015 Vitorino Group

13


DEMOGRAPHIC SUMMARY

PORT ARTHUR CORNERS

Geography: 5 miles

FINANCIAL ANALYSIS

Population In the identified area, the current year population is 92,904. The five-year projection for the population in the area is 93,520 representing a change of 0.66% from 2015 to 2020. Currently, the population is 49.5% male and 50.5% female. The median age in this area is 41.2, compared to the U.S. median agoe of 37.9.

Households There are currently 35,923 households in your selected georgraphy. The number of households has changed by 0.06% annually since 2010. It is estimated that the number of households in your area will be 36,184 five years from now, which represents a change of 0.14% annually from the current year. The average household size in your area is 2.56 persons.

Income PROPERTY DESCRIPTION

In 2015, the median household income for your selected georgraphy is $42,488, compare this to the Entire U.S. average, which is currently $53,217. It is estimated that the median household income in your area will be $49,747 five years from now, which represents a change of 14.59% from the current year. The current year per capita income in your area is $22,180, compare this to the Entire U.S. average, which is $28,597. The current year average household income in your area is $56,965, compare this to the Entire U.S. average, which is $74,699.

Race and Ethnicity The current year racial makeup of your selected area is as follows: 58.4% White, 22.6% Black, 0.6% Native American and 5.2% Asian/Pacific Islander. Compare these to the Entire U.S. Averages which are: 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 make up 25.1% of the current year population in your selected area. Compare this to the Entire U.S. average of 17.6%.

MARKET OVERVIEW

Housing In 2015, there were 22,592 owner occupied housing units in your area and there were 13,330 renter occupied housing units in your area. Median home value in the area is $122,086.

Employment In 2015, there are 38,157 employees in your selected area, this is also known as the daytime population. Currently, 51.0% of employees are employed in white-collar occupations in this geography, and 30.3% are employed in blue-collar occupations. In 2015, unemployment in this area is 6.5%. Demographic data Š 2015 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 2015 Vitorino Group

14


DEMOGRAPHIC STATISTICS

PORT ARTHUR CORNERS 1 Mile

3 Miles

5 Miles

Income

1 Mile

3 Miles

5 Miles

2000 Population

4,481

55,080

96,754

$ 0 - $14,999

11.7%

17.5%

17.2%

2010 Population

4,568

54,881

92,989

$ 15,000 - $24,999

13.8%

13.5%

13.0%

2015 Population

4,847

55,473

92,904

$ 25,000 - $34,999

13.9%

13.1%

12.9%

2020 Population

5,058

56,227

93,520

$ 35,000 - $49,999

11.1%

11.7%

12.1%

$ 50,000 - $74,999

19.3%

16.2%

16.2%

$ 75,000 - $99,999

11.6%

12.8%

12.8%

$100,000 - $149,999

15.6%

11.3%

11.8%

1.3%

2.3%

2.6%

1 Mile

3 Miles

5 Miles

$200,000 +

1.9%

1.7%

1.4%

2000 Households

1,915

21,239

37,113

2015 Median Household Income

$49,293

$41,564

$42,488

2010 Households

1,880

20,927

35,809

2015 Per Capita Income

$25,412

$21,946

$22,180

2015 Households

2,000

21,215

35,923

2015 Average Household Income

$60,923

$56,822

$56,965

2020 Households

2,087

21,514

36,184

2015 Average Household Size

2.37

2.58

2.56

2000 Owner Occupied Housing Units

1,227

13,763

25,183

2000 Renter Occupied Housing Units

689

7,476

11,931

2000 Vacant

131

1,802

3,539

2015 Owner Occupied Housing Units

1,237

12,740

22,592

2015 Renter Occupied Housing Units

763

8,475

13,330

2015 Vacant

157

2,830

5,568

2020 Owner Occupied Housing Units

1,290

12,810

22,593

2020 Renter Occupied Housing Units

797

8,704

13,591

2020 Vacant

174

3,026

6,029

PROPERTY DESCRIPTION

$150,000 - $199,999 Households

FINANCIAL ANALYSIS

Population

Traffic Counts

22,900

MARKET OVERVIEW

45,000

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 2015 Vitorino Group

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 Vitorino Group and it should not be made available to any other person or entity without the written consent of Vitorino Group. 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 Vitorino Group. 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. Vitorino Group 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, Vitorino Group has not verified, and will not verify, any of the information contained herein, nor has Vitorino Group 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 THE VITORINO GROUP AGENT FOR MORE DETAILS.


Net Lease Disclaimer Vitorino Group 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, the Vitorino Group has not and will not verify any of this information, nor has the Vitorino Group conducted any investigation regarding these matters. The Vitorino Group 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. The Vitorino Group 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 The Vitorino Group 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 | VITORINOGROUP.COM

Port Arthur Corners - Port Arthur, TX  
Read more
Read more
Similar to
Popular now
Just for you