Recovering commission from Buyer
I always split my fees, however had a broker tell me they weren't cooperating. I'm halfway through reviewing the deal, however haven't offered yet. My buyer is certainly a value purchaser, however I unearthed the opportunity for him. How would you best proceed to ensure you are taken care of? $6m office building acquisition
[{"id": "fwefg20", "text": "If you don't have an agreement with your buyer you aren't guaranteed anything. My firm focuses on apartment transactions and we have only split out fee out of necessity once or twice in the last three years.  If a realtor asks us what our co-broke is our standard response is \"whatever you want as long as you add it on top of the purchase price\". Thats usually the end of the conversation.\n\n&amp;#x200B;\n\nAnyone in the other big firms do it any differently?", "replies": [{"id": "fweujfa", "text": "Reading the responses, looks like ive been too generous over the years. Typical transaction I am looking between 2.5% - 3% fee. I generally always cut the buyers agent 1% minimum. In this case, the sellers agent told me I need to get my buyer to pay my fee, however I am unsure that he will..", "replies": [{"id": "fwfaoaa", "text": "Tell them that it has not been built into the acquisition cost at this time and if they want to move forward then you will need to build that into the cost. This will work with any agent they work with an Offer on (if co-operating). Sometimes the seller builds it in and sometimes they don\u2019t know what the rate should be so they leave it for negotiation. Negotiate so that the price is competitive and built in.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fwefizb", "text": "Depends how good your relationship is b/n you and your client. Does your client know about the deal already, cause you\u2019re essentially fucked if paying you is the road block between him and this deal\n\nEdit: If you end up getting screwed on the transaction, you could always try for a written guarantee on the lease up commissions for the available office space", "replies": [], "depth": 1}, {"id": "fweiowb", "text": "You need to get a \"direction of funds\" signed by the buyer or the seller and give it to the respective lawyer. Since the seller is not cooperating, that is out of the question. You can get the buyer to sign the document when the offer is made, (assuming it is made through you). Other than that, you are SOL", "replies": [], "depth": 1}, {"id": "fwelpu9", "text": "Re lawyer here that specializes in commission disputes. Get everything in writing, full stop.", "replies": [], "depth": 1}, {"id": "fwestqe", "text": "Your fee needs to be specified in the purchase agreement (offer).", "replies": [{"id": "fweut2a", "text": "So even if the agents tell me there is no cooperation, I can write it in and let them look bad with the seller and then chase my client for a fee?", "replies": [{"id": "fwey0am", "text": "Your buyer client will have no obligation to pay you a fee unless you negotiate that separately.  However, if you put language in the purchase contract that the seller must pay you a certain fee, the seller will see it.  There's probably a good chance there is indeed a broker co-op fee in the listing agreement anyway.", "replies": [], "depth": 3}, {"id": "fwf62mp", "text": "Yes.  Just what dspillie said.  When my agent writes an LOI, she includes what percentage the seller will pay towards her buyer's fee.  \n\nIf they strike the fee, you need to have your buyer sign something stating they will pay you, and then you give it to the attorney for closing.  The attorney will collect the funds at closing.  You should not need to directly collect it.\n\nYou should consult with your broker-in-charge.", "replies": [], "depth": 3}, {"id": "fwfr8zb", "text": "Write in your  3% for being the buying agent when you offer. Seller and selling agent will see it, call them and inform them you need them to pay that, and to increase selling price to where they're fine paying it.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fwfc7ca", "text": "As a principal, I can price this in if I am given a heads up/occurs before I write an offer.  The thought process is that I want the brokers to keep bringing me good deals so I am willing to pay for it.  I have lost deals however because I had to pay a fee to a third party broker and a competitor didn\u2019t.  Asking your buyer to price in your fee should be an issue just frame it as part of the cost and get a commission agreement signed.", "replies": [], "depth": 1}]