Here are two separate fee agreements between the commercial mortgage broker and borrower. Both are fairly simple at approximately 1 page and the other at 1 & half pages. The shorter one was created by our attorney in 2008. The longer one is newer, drafted in 2012 by a different attorney. Both cost us approximately $600 each. No real reason why we included two different agreements, just thought it would be more helpful to you the broker to have a different perceptive/examples.
“On conventional commercial mortgages, CMBS loans, bridge or private/hard money loans the lender and title company will require a fee agreement signed by the borrower authorizing you to be paid at funding. You need an agreement that will accomplish this, as well as protect you from several issues and protect your sources. In general, you should always get your agreement signed in the beginning of the process as going back later to the borrower, after they know who the lender is, what the terms and costs are, can be very problematic. Get your agreement signed in the beginning of the process so you know how you’re going to be paid!”
Both have basic language regarding many issues such as non circumvention(with penalties for doing so), establishing the fee (typically as a percentage of the loan amount), and the longer agreement has language establishing the relationship as being exclusive, among other topics designed to protect us, the broker.
We use both of these exact agreements often, especially on transactions that are smaller (less then $2,000,000) and on deals that we will be paid on the settlement statement (as opposed to being paid outside of close by either the borrower or by the lender). We also like to use them on deals that we only want to submit to a handful of lenders as opposed to running the transaction to many potential lenders. In other words on deals that we want to move quickly on.
On loan requests we want to run as a traditional mortgage broker, that are more complicated, where we get retainers and establish the relationship on a more comprehensive basis we use a different fee agreement, which can be found here. This longer agreement is solid, but it’s to complicated for some borrowers/deals.
As mentioned above we spent over $1,200 on these agreements. You can buy them both for $80. They come in Word (so you can edit them) instantly upon purchase, via our software program.
Combo Agreement Package
Or get ALL of our agreements, which includes 1. the comprehensive Commercial Mortgage Broker Agreement; 2. the simple Mortgage Broker Fee Agreements (there are 2 separate agreements in one); 3. the Co Broker Agreement; 4. the Non Circumvent, Non Disclosure and Confidentiality Agreement and 5. the Agreement Between Broker and Lender. $305 if purchased separately or get ALL for only $225 (We paid our attorney’s over $4,000 for all of them). All come in Word and are emailed instantly upon purchase.