Mortgage Broker Engagement Agreement

This agreement is an exclusive agreement. A lawyer can explain the benefits and pitfalls of exclusivity. A lawyer can also manage situations in which a party requests the exclusion of certain interested buyers or asks for a discount on the success fee when a transaction is completed. Insert the desired percentage of the consideration the client pays to the business broker when the transaction is completed. A common question is how the business broker is compensated for used payments (for example. B non-competition, wages and grades). A lawyer can define a methodology and design appropriate language. This letter is the Business Broker Engagement Agreement (“Agreement”) from the above-mentioned business broker and the client mentioned above (“customer”) and confirms the parties` full understanding of the maintenance and inclusion of the business broker to represent and support the client in the sale of the client`s business unit (a “transaction”). In the case of a transaction during the duration of the agreement, the client agrees to pay a royalty to a business broker at the close of the transaction based on the total remuneration received directly by the client and/or indirectly by owners, shareholders, related companies and/or its subsidiaries (“customer-related parties”) as a result of the transaction. consideration is the value received by the client and the parties close to the client as a result of a transaction, but is not limited to cash, cash equivalents, securities, debt securities, liabilities supported by buyers or investors, assets to be retained by the client (including assets to be retained by the client, including: Employment contracts, employment contracts and fair market advisory agreements, non-competitive agreements and shares or other securities received in exchange for the client`s shares or assets are income, royalties, real estate sold or leased, equipment sold or leased, employment contracts and fair market advisory agreements , non-competitive agreements and shares or other securities received in exchange for shares or assets of the client, i.e. the whole agreement between the parties with respect to their property and replaces all previous agreements, guarantees and agreements between the parties.

An amendment to this agreement is not binding unless both parties have agreed in writing. Some states require a business broker to provide a written disclosure document in accordance with the requirements of that state law. A lawyer can advise on the specific requirements of the state. Compensation clauses are often heavily negotiated because of the risks to the parties. This example clause is simple, short and favorable to the business broker.

© 2007-2012 Building Owners and Managers Association of California (BOMA Cal)