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LawTalk
LawTalk, Attorney
Category: Real Estate Law
Satisfied Customers: 27889
Experience:  I have 30 years legal experience. Additionally, in CA I held a Real Estate Broker's license.
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We run a marketing firm in Sarasota Florida that targets real

Resolved Question:

We run a marketing firm in Sarasota Florida that targets real estate agents and investors. We provide mobile marketing solutions and video production. Our services are very labor intensive and thus we must charge our clients a higher rate than our competitors. We would like to charge our customers 20% of the whole cost up front and 80% when the house sells.

Example
$300 Up front ( before any work is done)
$900 When the house sells (or taken off market)
Total - $1200

(The realtor/investor will be responsible for the remaining $900 within 15 days, if the home is taken off the market.)

Questions
1.Is this legal?
2.Are we required to be a licensed real estate agent to take part in a contingency sale?
3.Would there be any hiccups should we offer this service to a home seller (For sale by owners), realtors or investors?
4.Is it as simple as contacting a business attorney to get this contract drafted?
5.What would be a ballpark price for a draft of a contract like this one?
Submitted: 11 months ago.
Category: Real Estate Law
Expert:  LawTalk replied 11 months ago.

Good evening Christina,

I'm Doug, and I'm sorry to hear of the confusion. My goal is to provide you with excellent service today.

There is nothing wrong with proposing an upfront payment and a payment due at sale or when a property is taken off the market.

Section 8 of RESPA prohibits anyone from giving or accepting a fee, kickback or anything of value in exchange for referrals of settlement service business involving a federally related mortgage loan. In addition, RESPA prohibits fee splitting and receiving unearned fees for services not actually performed.

As your fee is not specifically coming from any fee charged for the settlement of a mortgage loan, but is a fee related to services provided to a Realtor or Investor, there is no prohibition under the law with regard to what you are wanting to do.

As you get paid when the property sells, or when it is removed from the market--it is not a true contingency fee---it is just a delayed final payment contingent on the happening of a specific occurrence.

I see no problems with offering your services to owner/sellers, realtors or anyone else for that matter---so long as you do not take the calls relating to the sale of the properties. You may only provide the advertisement/video services.

A local business law attorney would probably draft a general contract for you to use for a couple of thousand dollars, and it could be put together within a matter of a few days.

Please keep in mind that, even though you have already paid your deposit money over to JustAnswer, until you rate me highly for my service, I will not be paid for having assisted you with your questions.

If you have additional questions, you may of course reply back to me and I will be happy to continue to assist you further until your questions have been answered to your satisfaction.


I wish you the best in your future.

Doug

Customer: replied 11 months ago.
Thank you so much! That is so great to hear.
What benefits would l be getting by having an attorney draft my contract versus using a service like rocket lawyer?
Expert:  LawTalk replied 11 months ago.

Good evening Christina,

You asked: What benefits would l be getting by having an attorney draft my contract versus using a service like rocket lawyer? Quite simply, your contract requirements are not well suited to a general contract such as might be available through a low cost/free form provider. You stand to lose more in two transactions gone bad than what you would pay for an attorney to customize a contract for you that will be enforceable in court.

Sped the money on a real attorney to draft this for you. You can always write it off, and you will know that a lawyer drafted it just for you.

Thank you for your kind words. They are appreciated. Please keep in mind that even though you have already paid your deposit money over to JustAnswer, until you rate me highly for my service, I will not be paid for having assisted you with your questions.

Thanks again.

Have a great day,

Doug

LawTalk, Attorney
Category: Real Estate Law
Satisfied Customers: 27889
Experience: I have 30 years legal experience. Additionally, in CA I held a Real Estate Broker's license.
LawTalk and 7 other Real Estate Law Specialists are ready to help you
Customer: replied 11 months ago.
Great! Thanks so much! I really appreciate your answers :)
Expert:  LawTalk replied 11 months ago.
Thank you for your kind words. They are appreciated. Please keep in mind that even though you have already paid your deposit money over to JustAnswer, until you rate me highly for my service, I will not be paid for having assisted you with your questions.

Thanks again.

Have a great day,

Doug

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