COMMERCIAL REAL ESTATE

REFERRAL

FEES COMMERCIAL

FREQUENTLY ASKED QUESTIONS


1.  DOES MY REAL ESTATE LICENSE HAVE TO BE "ACTIVE" FOR ME TO BE PAID A REFERRAL FEE?


YES - PURSUANT TO THE ARIZONA STATUTES AND COMMISSIONER'S RULES, YOUR LICENSE MUST BE "ACTIVE" TO RECEIVE A REFERRAL FEE.  IF YOU DO NOT HAVE AN ACTIVE REAL ESTATE LICENSE OR IT HAS BEEN SUSPENDED, REVOKED, TERMINATED, SURRENDERED OR IS IN THE GRACE PERIOD, I AM NOT PERMITTED TO PAY YOU A REFERRAL FEE.


2.  ARE YOU ABLE TO COMPLETE ANY TYPE OF COMMERCIAL REAL ESTATE TRANSACTION THAT I WANT TO REFER TO YOU?


NO - THERE ARE A FEW TYPE OF TRANSACTIONS THAT COULD BE CONSIDERED COMMERCIAL ( I.E. BUSINESS BROKERAGE, CEMETERY BROKERAGE, TIMESHARE SALE, ETC.) THAT I DO NOT HANDLE.  IF I CAN NOT ACCOMODATE YOUR CLIENT, I WILL DO THE BEST I CAN TO FIND A QUALIFIED SALESPERSON OR BROKER TO REPRESENT YOUR CLIENT AND ARRANGE IT SO THAT YOU RECEIVE A 20% REFERRAL FEE.


3.  ARE COMMERCIAL LEASE AND SALE COMMISSIONS A FIXED AMOUNT?


NO - COMMERCIAL LEASE.  COMMISSIONS ARE CALCULATED AS A PERCENTAGE OF THE AGGREGATE, SCHEDULED RENTAL INCOME OVER THE PRIMARY LEASE TERM OR AS A DOLLAR PER SQUARE FOOT BASED UPON THE SIZE OF THE PREMISES LEASED.  SALE COMMISSION PERCENTAGES ARE NOT CONSISTENT OR "SET" AND RANGE ANYWHERE  FROM 1% OF THE SALE PRICE TO 10% OF THE SALE PRICE BASED UPON THE SIZE OF THE PROPERTY AND THE TERMS AS CONTAINED IN THE LISTING AGREEMENT.


4.  IF THE CLIENT I REFERRED TO YOU LEASES, SELLS OR PURCHASES ADDITIONAL COMMERCIAL PROPERTIES IN THE FUTURE, DO I RECEIVE A REFERRAL FEE ON THOSE TRANSACTIONS?


YES -  REFERRAL FEES WILL BE PAID TO YOU ON ANY FUTURE TRANSACTIONS SUBJECT TO THE REQUIREMENTS THAT YOU MUST BE ACTIVELY LICENSED AT THE TIME OF THE TRANSACTION FOR ME TO BE PERMITTED TO PAY YOU A REFERRAL FEE.


5.  WILL I KNOW THE STATUS OF ANY CLIENT I REFER TO YOU AND WHETHER OR NOT THE TRANSACTION IS PROCEEDING?


YES - AFTER I HAVE SPOKEN WITH/MET WITH YOUR CLIENT, I WILL EMAIL YOU WITHIN 15 DAYS AND LET YOU KNOW THE STATUS OF THE TRANSACTION AND AN ESTIMATED TIMELINE.  THEREAFTER, YOU WILL RECEIVE AN EMAIL EVERY 60 DAYS UPDATING YOU ON THE STATUS OF THE ASSIGNMENT WITH THE CLIENT.  IF A PROPOSED TRANSACTIONS "DIES", I WILL EMAIL YOU AND PROVIDE THE REASON(S) THAT THE TRANSACTION WAS NOT COMPLETED.


6.  DO COMMERCIAL REAL ESTATE TRANSACTIONS HAPPEN QUICKLY?


NO - COMMERCIAL LEASES TYPICALLY WILL TAKE 3 - 6 MONTHS FROM INCEPTION TO THE FULL EXECUTION BY THE PARTIES.  SALE TRANSACTIONS WILL TYPICALLY TAKE 3 - 12 MONTHS FROM INCEPTION TO THE CLOSE OF ESCROW.  IF THE TRANSACTION IS AN "ALL-CASH" TRANSACTION, THE TIMELINE MAY BE CLOSER TO 3 MONTHS.  IF IT IS A LARGER AND/OR MORE COMPLICATED SALE TRANSACTION, IT MAY TAKE UP TO 12 MONTHS FROM INCEPTION TO THE CLOSE OF ESCROW.  TYPICALLY, A SALE TRANSACTION TIMELINE WILL BE 4 - 6 MONTHS FROM INCEPTION TO THE CLOSE OF ESCROW.


7.  IS IT EASY FOR ME TO GET PAID?


YES - LEASE COMMISSIONS ARE TYPICALLY PAID IN TWO PARTS: THE FIRST HALF OF THE LEASE COMMISSION IS PAID WITHIN 30 DAYS OF THE EXECUTION OF THE LEASE BY THE PARTIES AND THE REMAINING HALF IS PAID THE ATER OF 30 DAYS OF THE TENANT OPENING THE PREMISIS FOR BUSINESS OR THE COMMENCEMENT OF THE PAYEMTN OF RENT.  YOUR REFERRAL FEE WILL BE SENT TO YOUR EMPLOYING BROKER WITHIN 7 BUSINESS DAYS OF ME RECEIVING THE CHECK FROM TEH LANDLORD OR LANDLORD REP.  SALE COMMISSIONS ARE ALWASY PAID IN FULL AT THE CLOSE OF ESCROW AND YOUR REFERRAL FEE WIL BE SENT TO YOUR EMPLOYING BROKER WITHIN 7 BUSINESS DAYS OF ME RECEIVING THE CHECK FROM THE ESCROW CLOSING COMPANY.


8.  IF I AM A LICENSED REAL ESTATE SALESPERSON OR BROKER IN ANOTHER STATE, CAN YOU PAY ME REFERRAL FEES?


YES - IF YOU HAVE A CLIENT THAT WANTS TO RELOCATE OR EXPAND IN ARIZONA, I CAN PAY YOU REFERRAL FEES SUBJECT TO A COUPLE OF CONDITIONS.  PURSUANT TO ARIZONA STATUTES, I MUST PAY THE REFERRAL FEE TO YOUR EMPLOYING BROKER, YOU MUST HAVE AN ACTIVE LICENSE IN THE OTEHR JURISDICTION (WHICH I WILL VERIFY) AND YOU MAY NOT CONDUCT ANY ACTIVITY IN ARIZONA THAT WOULD OTHERWISE REQUIRE LICENSURE IN THIS STATE.  PLEASE CONTACT ME IF YOU HAVE ANY QUESTIONS OR CONCERNS REGARDING THESE PROVISIONS.


IF YOU NEED ANY ADDITIONAL INFORMATION OR HAVE QUESTIONS, PLEASE, EMAIL ME AT stevencrane@live.com, USE THE CONTACT FORM OR CALL ME AT (480) 812-5447


RE/MAX EXCALIUBUR - COMMERCIAL

8510 E Shea Blvd, Ste 100 ScottsdaleAZ 85260

(480) 812-5447

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Steven Crane, ACP

(480) 812-5447.  MOBILE

stevencrane@live.com