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Incentive Fee

An 'incentive' or 'contingency' fee is a charge related to the degree of success achieved in the task for which it is payable. A client may agree an incentive based fee for property instructions with their appointed commercial property agent or surveyor.

For example, in rent review cases an incentive based fee, if appropriate, is usually based on the degree of success achieved in the negotiation that takes place between the parties.

Thus, in the case of representing the proprietor, the higher the level of the revised rent achieved, the greater the fee payable to the commercial property agent or surveyor, or vice versa in the case of representing the tenant.

It would not be usual to agree an incentive fee when the commercial property agent or surveyor is appointed to act in the role of an Expert Witness, for example Arbitration or Court proceedings.