This attorney drafted Commercial Mortgage Broker Fee Agreement document sets forth the terms of an agreement between a mortgage broker and potential borrower for the broker’s efforts in assisting the borrower to obtain a loan for the purchase of certain commercial property. The form contains both standard clauses and opportunities for the use of optional terms and conditions making it fully customizable to fit the needs of the contracting parties. This Agreement should be used by brokers who want to enter into an agreement with potential borrowers.
This attorney drafted Commercial Mortgage Broker Fee Agreement document sets forth the terms of an agreement between a mortgage broker and potential borrower for the broker’s efforts in assisting the borrower to obtain a loan for the purchase of certain commercial property. The form contains both standard clauses and opportunities for the use of optional terms and conditions making it fully customizable to fit the needs of the contracting parties. This Agreement should be used by brokers who want to enter into an agreement with potential borrowers. COMMERCIAL MORTGAGE BROKER FEE AGREEMENT This agreement made this __ day of ___, 20__ [Instruction: Insert date.] between _________ [Instruction: Insert Borrower’s name. Please note, if Borrower is a corporate entity, include all entity formation information including state where formed and where authorized to do business.] of _________ [Instruction: Insert Borrower’s address.] (the “Borrower") and _____ [Instruction: Insert Broker’s name.] (the “Broker”) with a principal place of business located at _____ [Instruction: Insert Broker’s principal place of business address.]. For valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. The Borrower authorizes and engages the Broker to assist with obtaining a hard money loan for the property known _____ [Instruction: Insert property address.] (the “Property”) in accordance with the terms and conditions agreed to in the Lender’s Agreement provided under separate cover to the Borrower. 1. Broker is hereby engaged as Borrower’s agent solely for purposes of attempting to obtain a hard money loan for the Property in accordance with the terms of this agreement and is authorized to solicit loan applications for the Property from any or all of the lenders that Broker has an origination agreement with or with whom a broker agreement is honored by said lender, to negotiate terms of these applications and, if an application is signed by Borrower, to assist in the closing of the loan. Borrower understands that Broker is not a direct lender and none of its funds will be used to finance the loan for the Property unless otherwise agreed to in a separate writing between the parties. 2. This “Broker Fee Agreement” serves to set forth the understanding in connection with helping to secure the proposed financing for the Property. 3. The Borrower is requesting a Minimum Loan Amount of $ ___________ [Instruction: Insert minimum loan amount.] United States Dollars. The items in paragraphs “A” through “F” below will be clearly stated as applicable in a separate Letter of Interest and agreed to as applicable in a separate Lending Agreement from (the “Lender”). A. Minimum Loan Term: ______ years B. Maximum Loan Amortization: _______ years C. Maximum Interest Rate: ________% D. Loan Type: Fixed____ Variable____ Either_____ E. Options: Full Recourse_____ Non-recourse_____ Negotiable_____ F. Other: __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ _________________________________________ [Instruction: Insert applicable information.] 4. Broker Fees. The Borrower hereby agrees to pay the following Broker fees [Comment: Revise as necessary to evidence applicable agreement between parties. Also, if this is to be an exclusive brokerage deal, language to that effect should be included here.]: © Copyright 2012 Docstoc Inc. 2 5. Processing Fee. No processing fees are due to the Broker from the Borrower for services performed in accordance with this Agreement. [Comment: If Broker is going to charge Borrower for any expenses incurred by Broker while shopping the loan, same should be included here.] 6. Success Fee. The Borrower agrees to pay the Broker a success fee equal to 1% of any loan secured by the Property for which the Broker was the procuring cause of the financing for a period of 180 days from the execution this Agreement. The success fee does not include any point(s) to be paid to the lending institution, closing costs or any point(s) or fees paid to other mortgage consultants for their services. The success fee is fully earned by the Broker when the financing has been approved in writing by the lender with terms and conditions acknowledged in writing to be acceptable to the Borrower. This fee will be collected at the loan closing. The success fee is deemed to be fully earned and payable upon demand so long as the failure to close is solely the result of the Borrower’s acts or omissions. 7. Lender Fees. The Borrower understands that the lender may require a cash deposit prior to issuance and acceptance of a loan commitment. Any such deposits will be collected and retained by the lender, subject to the lender’s policies and procedures. Further, the success fee shall be deemed earned regardless of any requirement of such a deposit, whether or not Borrower pays or fails to pay such deposit. 8. Financing is not Guaranteed. The Borrower understands and agrees that this Agreement is not a guarantee and that the proposed financing may not be successfully completed. If acceptable financing cannot be obtained, the Broker’s obligation shall be limited to advising the Borrower that the Broker is unable to procure the proposed financing. 9. Information for Borrower. The Borrower agrees to provide any requested information and to execute and deliver the appropriate completed forms that may be customarily required in a timely manner and to the best of Borrower’s ability to secure financing on the Property. Borrower agrees to review the completed loan request package and is responsible for its accuracy and completeness. After the loan application has been obtained, Borrower agrees to use due diligence to close the loan. Borrower is responsible to ensure that the agreed upon success fee is paid out of escrow or otherwise at closing. 10. Term of this Agreement. The term of this Agreement shall remain in full force and effect for 180 days from the date of its execution OR until a successful loan is made with the Lender OR refusal of its offer. This Agreement may be cancelled upon written notice. 11. Entire Understanding. This agreement constitutes an entire understanding and cannot be modified unless agreed to in writing and signed by all parties. This agreement is binding on the parties aforementioned, their heirs and assigns and all others succeeding in the interest to any party either directly or indirectly. 12. Notices. Any notices sent or required to be sent pursuant to this Agreement shall be in writing and be deemed to be duly served if mailed, postage prepaid, certified mail, return receipt requested, or delivered by Federal Express or other comparable overnight carrier, or delivered in hand by a duly appointed constable, to the addresses of the parties stated below or to such other addresses as either party may notify the other by notice given pursuant to this paragraph: ______ [Instruction: Insert Borrower’s and Broker’s respective addresses.]. © Copyright 2012 Docstoc Inc. 3 13. Construction. This agreement shall be construed, interpreted and enforced in accordance with the laws of the State of _____ [Instruction: Insert state.]. 14. Waiver. The waiver by one party of a breach of any provision of this Agreement by the other party shall not operate or be construed as a waiver of any previous or subsequent breach of the same or any other provision by the other party. 15. Unenforceability. In the event that any portion of this agreement shall be deemed null and void or unenforceable by any court of competent jurisdiction, then notwithstanding the same, the remaining provisions of this agreement shall be full force and effect. 16. Facsimile Counterparts. This agreement or any subsequent amendment or modification hereto may be executed by facsimile and/or in one or more counterparts, each of which when so executed and delivered shall be deemed an original, but all of which taken together shall constitute but one and the same original. Each party shall accept any such signed faxed counterpart as full execution of this agreement or any subsequent amendment or modification thereto. 17. Descriptive Headings. The descriptive headings used herein are for convenience of reference only and they are not intended to have any effect whatsoever in determining the rights or obligations of the parties hereto. 18. Signatory Authority. The person(s) executing this agreement hereby represent and warrant that each respectively has the authority to execute this agreement on behalf of the party for which he is executing. 19. Optional language: Parties may wish to include additional provisions for a mediation and/or arbitration requirement. Further, they may wish to include provisions for payment of attorneys’ fees. Agreed to by: ___________________________________ Borrower Date ______________ ___________________________________ Borrower Date ______________ ___________________________________ Borrower Date ______________ ___________________________________ Borrower Date ______________ © Copyright 2012 Docstoc Inc. 4
Pages to are hidden for
"Commercial Mortgage Broker Fee Agreement"Please download to view full document