Commercial Mortgage Broker Fee Agreement - DOC

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Commercial Mortgage Broker Fee Agreement - DOC Powered By Docstoc
					- AGREEMENT THIS AGREEMENT (The “Agreement”), made and entered into this Fourteenth day of August, 2008 by and between _______________ of ____________________ (“Broker”), and ______________ (“Client”). WHEREAS, Client desires a commitment for a real estate mortgage loan the proceeds of which shall be used to finance the property(s) identified herein below; and, WHEREAS, Broker, subject to the terms herein, will provide mortgage broker services to assist Client in obtaining and closing on such commitment. NOW, THEREFORE, the parties hereto, each in consideration of the covenants and agreements of the other, in consideration of the services to be performed, and for good and other valuable consideration, the receipt and adequacy of which are hereby acknowledged, agree as follows: 1. Client hereby contracts Broker to obtain a commitment for a mortgage loan in the amount and terms acceptable to Client (“Loan Amount”) secured by the following property (“Property”): (Enter Property Description Here) 2. Client agrees to pay to Broker an amount equal to ____ Percent (___%) of the Loan Amount as a fee (the “Fee”) which shall be earned upon issuance of a commitment with terms and conditions acknowledged in writing to be acceptable to the Client. It is understood and agreed that Broker is entitled to the Fee as earned for his services in securing such commitment. 3. The Parties agree that the payment of any fees due shall be made directly out of the proceeds of the loan or sale. Client hereby irrevocably appoints Broker his Attorney-In-Fact for the sole purpose of issuing instructions to Escrow/Closing Holder to pay the fee directly to Broker or his assigns. 4. Broker and Client agree that this employment and authority of Broker by Client shall continue six (6) months from date hereof, and shall continue from month to month after such six month period, unless and until said contract is terminated by either of the parties in writing, excepting the covenants as described in Paragraph 5. 5. Client or any affiliate of Client agrees not to circumvent Broker by directing, approaching, dealing, contacting, or entering into a transaction with any lender or buyer with whom Broker has introduced to the Client for any purpose during the five year term commencing on the date of this agreement. This clause and covenant contained herein shall survive the agreement if earlier terminated as referenced in Paragraph 4. If Client does circumvent said Broker as described herein, then Broker shall be entitled to the full __% fee as otherwise described in Paragraph 2, notwithstanding any other payments made by Client to other Brokers concerning the subject circumvention. 6. Broker agrees to use reasonable commercial efforts to obtain and close financing for the project. Broker does not guarantee that financing can or will be obtained. Client agrees that Broker will not be liable to Client for any losses or damages whatsoever in the event financing is not obtained. 7. Broker is hereby authorized to solicit loan applications for the Property from the lenders with whom it has agreements, and any other Lender it may contact as necessary. Client agrees that Broker will be Client’s non-exclusive Broker for financing of this property during the term of this agreement.

8. This AGREEMENT constitutes the entire AGREEMENT between the parties hereto and supersedes any prior verbal or written agreement. 9. In the event any provision of this AGREEMENT is illegal, invalid or unenforceable, such a provision shall not affect the validity of the remainder hereof. 10. This AGREEMENT shall inure to the benefit of and be binding upon the parties hereto, and their respective representatives, successors, and assigns. Client hereby represents that he has the legal authority to act on behalf of any entity involved in this transaction. 11. This AGREEMENT, its construction, validity, and effect shall be governed by and interpreted in accordance with the laws of the Commonwealth of Massachusetts.

Agreed to and accepted this ____ day of _____________, 2009. BROKER Signed: ________________________ Name: _________________________ Date: ___________________________ CLIENT Signed: _________________________ Name: ___________________________ Date: _____________________________

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Description: Fee Algreement between commercial mortgage broker and borrower client.