A Commercial Mortgage Broker Fee Agreement Template is a crucial legal document that outlines the terms and conditions between a commercial mortgage broker and a client. This agreement clearly defines the services provided by the broker, the fees charged, and the responsibilities of both parties. A well-drafted agreement ensures transparency, accountability, and legal protection for both the broker and the client.
Key Elements of a Commercial Mortgage Broker Fee Agreement Template
1. Parties Involved
- Broker: Clearly identify the broker’s legal name, business address, and contact information.
- Client: Specify the client’s legal name, business address, and contact information.
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2. Services Provided
- Core Services:
- Property Evaluation: Detail the broker’s role in assessing the property’s value and suitability for financing.
- Loan Origination: Outline the broker’s responsibility in identifying potential lenders and structuring the loan.
- Underwriting Assistance: Describe the broker’s support in preparing loan applications and documentation.
- Negotiation: Explain the broker’s role in negotiating favorable terms with lenders.
- Closing Coordination: Detail the broker’s involvement in coordinating the closing process.
Additional Services (Optional):
- Property Management: If applicable, specify any property management services provided by the broker.
- Consulting Services: If applicable, detail any consulting services offered, such as financial analysis or strategic advice.
3. Fees and Compensation
- Broker’s Fee: Clearly state the broker’s fee structure, whether it’s a flat fee, a percentage of the loan amount, or a combination of both.
- Fee Payment Schedule: Specify the payment terms, including any upfront fees, progress payments, or final payment upon loan closing.
- Reimbursement of Expenses: Outline any expenses that the client may be responsible for reimbursing, such as appraisal fees, title search fees, or other related costs.
4. Client Responsibilities
- Information Provision: The client must provide accurate and complete information to the broker, including financial statements, property documents, and other relevant materials.
- Cooperation: The client must cooperate with the broker and promptly respond to requests for information or documentation.
- Decision-Making: The client must make timely decisions regarding loan terms, lender selection, and other critical matters.
5. Broker’s Responsibilities
- Diligence: The broker must act diligently and professionally in representing the client’s interests.
- Confidentiality: The broker must maintain the confidentiality of the client’s information.
- Compliance: The broker must comply with all applicable laws, regulations, and industry standards.
6. Term and Termination
- Term: Specify the duration of the agreement, whether it’s a fixed term or a term that continues until the loan closes.
- Termination: Outline the conditions under which either party may terminate the agreement, such as breach of contract or mutual agreement.
7. Governing Law and Dispute Resolution
- Governing Law: Specify the jurisdiction whose laws will govern the agreement.
- Dispute Resolution: Outline the preferred method for resolving disputes, such as mediation, arbitration, or litigation.
8. Entire Agreement and Modifications
- Entire Agreement: State that the agreement constitutes the entire understanding between the parties and supersedes any prior agreements or representations.
- Modifications: Specify the process for modifying the agreement, including any required written consent.
Design Elements for a Professional Template
Clean and Professional Layout: Use a clean and professional layout with clear headings and subheadings.
- Consistent Formatting: Maintain consistent formatting throughout the document, including font size, font style, and line spacing.
- Professional Typography: Choose a professional and easy-to-read font, such as Times New Roman or Arial.
- Clear and Concise Language: Use clear and concise language to avoid ambiguity and legal jargon.
- Professional Logo: Include your company’s logo at the top of the document.
- Page Numbering: Add page numbers to the bottom of each page.
By incorporating these elements, you can create a professional and effective Commercial Mortgage Broker Fee Agreement Template that protects your interests and builds trust with your clients.
