WeWork South Africa Broker Terms of Service
Dear Broker,
- At WeWork we understand the crucial role that Brokers play in our industry and the important contribution that they make to our continued success. It is important to preserve this relationship by having clear terms of engagement.
- This Broker Terms of Service document (“TOS”) sets out the terms and conditions that govern and regulate our relationship with Brokers when introducing prospective members to us. It aims to avoid double introductions and potential disputes regarding commissions.
- WeWork pays commission to the Broker that is the “Effective Cause” of a transaction as more fully detailed in 10 below.
- The commission rate payable for brokerage fees, unless agreed otherwise in writing, is as follows:
- On deals of 6 to 12 months – 10% of the Total Contract Value (“TCV”)
- On deals of 13 or more months the following rates will apply:
- 4.1.1. 5% of the TCV of Months 1-24
- 4.1.2. 2.5% of the TCV of Months 25-36;
- 4.1.3. 1.5% of the TCV of Months 37-48
- 4.1.4. 1% on the TCV of Months 49 onwards
- No commission is payable, unless agreed otherwise in writing, on:
- 5.1 All Access memberships.
- 5.2 Month -to – Month membership agreements.
- 5.3 Membership agreements of less than 6 months duration.
- No commission is payable on renewals, extensions, or expansions.
- Brokers introducing a prospective member must have a written mandatefrom the client. Failure to have a written mandate and /or being able to produce names on request may result in cancellation and/or rejection of the introduction.
- No verbal introduction will be accepted.
- All introductions are to be submitted in writing either through the Broker portal or directly with the Sales Department.
- In order for a Broker to be the “effective cause” of an introduction and in order to qualify for the brokerage fees listed above the Broker must:
- 10.1 Be present when the client tours the premises.
- 10.2 Be actively involved and participate in the negotiations.
- 10.3 Present an acceptable written offer or signed membership agreement.
- 10.4 Facilitate, arrange and attend all meetings between WeWork and the client.
- Failure to do so will mean that the introduction does not qualify for brokerage fees but is merely an introduction in respect of which WeWork will pay an introduction fee equivalent to 10% of the Broker fees detailed in 4 above.
- An introduction will only be valid for a period of 90 (ninety) days as from the date of acceptance of such introduction. Should no membership agreement be concluded within the 90 (ninety) day period then the introduction shall be considered as lapsed with no claim for commission thereafter unless agreed to otherwise in writing.
- Commission will become due to the Broker when: A membership agreement has been signed by both the member and WeWork; and The Service Retainer detailed in the membership agreement as well as the first month's membership fees have been received by WeWork. A legally valid tax invoice has been received by WeWork.
- Payment will be made within 30 days from the date of receipt of the invoice referred to in 13.3.
- Neither the Broker nor WeWork may rely on any representation(whether or not made innocently, negligently or deliberately) which allegedly induced one party to enter into any obligation unless the representation is recorded in writing. Nothing purporting to varying, adding to, deleting from or canceling these terms, and no waiver of any right under these terms, shall be effective unless reduced to writing and signed by or on behalf of the parties.
- This Agreement is to be governed, interpreted and implemented in accordance with the laws of the Republic of South Africa and the parties consent to the non-exclusive jurisdiction of the Gauteng High Court for any proceedings arising out of or in connection with these terms.
