when i assign the contract to the final buyer how do i get my birddogging fees

In Buying Property - Asked by Ron N. - Mar 21, 2012
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Answer(s)

Donald J L.
Broker/Agent
Fort Lauderdale, FL

Assuming birddogging fees are part of your legal licensing, your fee should be spelled out in writing in the agreement, this super-cedes any listing agreement also. If you are not licensed then it would be prudent to have a "consultant fee" spelled out in the assignable contract. If it is in writing you can be certain of being paid, if not, you can be certain you will not get paid.

Mar 25, 2012
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barbara f.
Owner/Investor
Cypress, TX

Ron, the best way to do this is to "sell" the contract to the final buyer. That way, you're assured of your fee regardless of whether the buyer finally closes or not. Your job has been to locate and negotiate the best deal, and the buyer is the beneficiary of your hard work; therefore, what you are selling is the negotiated "deal", not the actual property. This has worked for me in the past. It doesn't always work if the buyer in not an experienced or sophisticated buyer, as they think they are paying an additional commission.

Mar 27, 2012
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Darrick S.
Owner/Investor
Addison, TX

Ron,
Also consider using a double close.

Apr 8, 2012
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J. David F.
Broker/Agent
Brentwood, TN

#1) IF you are assigning a contract, that means YOU signed a buy/sale agreement and are selling your position to another buyer. Seller's agreement of assignment terms typically will not let you off the hook if the assignee fails to close, so be careful who you sell your contract to. As for "bird-dogging" that means you spotted a potential buyer/seller for something and in this case real estate. It may be illegal to pay you a referral or bird-dog fee unless you are licensed (as it is illegal in Tennessee). In any case that is between you and the the person you referred the deal to. You need your terms stipulated clearly up front as to your compensation and when it is paid. But almost as important: do not interchange the terms because they are not the same, and you may incur legal expense for doing such.

Apr 9, 2012
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Chris R.
Broker/Agent
Denton, TX

Be careful out there and consult knowledgeable professionals (CPA / Lawyer) in your area. I followed a line of discussion where in PA this would constitute a transfer and bring into play a transfer tax on BOTH transactions. Not all states have that, many don't but you need to inquire for the area where you are doing such a transaction from those who know.

May 23, 2012
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Matthew U.
Broker/Agent
Redondo Beach, CA

If you are going to collect fees then they better be in writing and signed. I would highly suggest that they are incorporated into the assignment contract and specify the amount of the fee specifically, when it is specifically due and payable, and by what method of payment. For example is the assignment going through escrow? It is important in contract law to specify as much as possible. If you specify it and it is signed then it will be a requirement of the contract. If you have an escrow officer or title agent, they are often a good resource for this type of information. Hope this helps.

Jun 1, 2012
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Chris S.
Broker/Agent
Coeur D'alene, ID

Be very careful about "assignment" of a contract. YOU ARE STILL liable for all the terms and conditions that you agreed to in the original contract if your assignee does not perform! This is an area of contract law that is becoming more active for attorneys.

Aug 1, 2012
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