Real Estate commission

[Mr. Jenkins]

I’m in the state of Florida. I am an owner of a brokerage firm. It’s a new venture that I started this year so we are pretty small. My firm connects people with capital to people that need capital. I have a client with a plot of land in Mexico and was looking for construction financing. However, the client was also willing to sell the land if he could not find the financing. The property is not on the market to be sold. One of my contacts called me wishing to actually purchase the land instead of providing financing. This would be a private sale directly between the seller and buyer. I am not a real estate agent or real estate broker. I’ve put a lot of work into this particular project and I would like to make some money from it regardless of if I find financing or if it is sold as a result of work that I did. Can I legally broker the sale of this property and make a commission on it? If not, how can I make money on the sale of this property?

 

[HRZ]

I suspect you are not licensed in Mexico and folks sometimes find excuses not to pay for unlicensed services are easy to come by , nor are you apparently licensed to broker RE in FL ( yes, land is in Mexico )

There may be ways to lock in a contracted fee ...but I sure as heck would get paid FL counsel on point and hopefully your client is within FL or USA for jurisdiction purposes .

You are at great risk of having brokered a marriage without a fee .

 

[xylene]

My firm connects people with capital to people that need capital.

I'm not fully clear on how your business makes money.

But in this case it seems your contract or deal with the Mexican landowner has a big loophole that could be (or should have been) closed by a term for your payment if financing was not secured for whatever reason (such as selling instead)

 

[Mr. Jenkins]

I'm not fully clear on how your business makes money.

But in this case it seems your contract or deal with the Mexican landowner has a big loophole that could be (or should have been) closed by a term for your payment if financing was not secured for whatever reason (such as selling instead)

It's a financing brokering business. When people need money (for working capital for their business, construction financing, equipment financing, etc), they call my firm. We find it for them.

Also, if I’m interpreting your response correct (and please correct me if I’m wrong), you’re saying that my contract should have said my compensation should have been in the event that my firm finds capital for the client from any source that my firm introduces the client to or in the event that this parcel of land sells through any source produced through my firm.

 

[xylene]

Pretty much, except I don't think it aught matter how the non fianced deal arises.

How do you get paid if a client backs out and doesn't go through with securing financing?

This is the basically same thing, he's just selling and not getting financing through you.

How would you get paid if the guy said "I'm going to hold off for 3 years and see if avocado prices* rise. I don't need capital right now."

*or whatever reason

 

[Mr. Jenkins]

Pretty much, except I don't think it aught matter how the non fianced deal arises.

How do you get paid if a client backs out and doesn't go through with securing financing?

This is the basically same thing, he's just selling and not getting financing through you.

How would you get paid if the guy said "I'm going to hold off for 3 years and see if avocado prices* rise. I don't need capital right now."

*or whatever reason

If no financing is secured, then it's loss for the firm; the firm takes the hit and moves on to other clients. This is different for me and my firm in that, this is not something that has happened before. Generally, clients com to us because they are seeking financing and that's it. The client is usually not willing to also sell the asset that they are trying to finance. Additionally, I had no idea they were willing to sell until after my firm was contracted. On top of that, I've never had anyone in my network of lenders and investors offer to buy an asset of any one of my clients. I opened my firm this year but I've been doing this for 4 years and this is a first for me, EVER.

Since my firm is already in the middle, it seems like the client is willing to let my firm "do the talking." If that continues to be the case, we don't work for free. I just wanted to ensure that it was legal to do that before I do it since this is outside of the scope of our arrangement with the client and my firm is not a real estate brokerage firm. My point is that it seems like although the client is not getting financing through me, the client would be instead selling through me.