Letter of Protection & REITS - Posted by tonyc

import · January 29, 2007, 3:29pm

Posted by tony on January 31, 2007 at 08:02:46:

thanks Ray,…

import · January 29, 2007, 3:29pm

Posted by tonyc on January 29, 2007 at 16:29:00:

Hi all,

As a RE Broker, I am tyring to find a letter that will protect me and my souces when i present a property to a REIT for purchase consideration. (i want to make sure they don’t go behind my back or side-step me).

When a buyer does their due-dilligence they will discover the seller’s name or the broker representing the seller.

In other words, if i present a deal to a potential buyer and i don’t have an exclusive, i want the prospective buyer to sign an agreement saying they will not go around me directly to the source.

Does anyone know where i can find such a letter???

Thanks in advance!

TW

import · January 29, 2007, 10:13pm

Re: Letter of Protection & REITS - Posted by jason (SC)

Posted by jason (SC) on January 29, 2007 at 23:13:28:

tony

i am a broker as well.

I often present development properties to very large companies and rarely use a NDNC.

My experience is its best not to be in a chain. It seems like when a bunch of realtors get together on a deal none of them trust one another and you always see a ton of NCDCs flying around. I have seen a lot of deals recently where when I recieved the property information and there was already 4-5 brokers in the deal.

If i’m not direct with the seller or direct with the buyer - it doesn’t get presented. This saves a lot of agravation, time, headache and heartache.

I feel like a lot of times this releaves some of the need for a NCDC. If there are more that 2 or 3 brokers total - its too crowded

I could rant for hours on commercial brokers and NDNCs

But like Ray said your office should have one - if not talk to your lawyer - I have a simple one page one I use most of the time that I had a lawyer do for me. Short, simple and easy to understand.

jason

import · January 29, 2007, 7:26pm

Re: Letter of Protection & REITS - Posted by ray@lcorn

Posted by ray@lcorn on January 29, 2007 at 20:26:33:

Tony,

What you need is known as a Non-Circumvention Agreement. Most commercial brokerage houses have ready made forms they have developed to reflect their wishes and the particular state’s laws.

Non-circs are also often included with non-disclosure agreements, also known as confidentiality agreements.

In accordance with the universal business law of never using words when an acronym can be used, the combined agreement may also be referred to as a NCND agreement. (smile)

If your broker doesn’t have one, consult with an experienced real estate attorney. Best not to use boiler-plate forms or those drafted by others due to the quirks of each state’s brokerage laws.

ray

import · January 31, 2007, 7:00am

Re: Letter of Protection & REITS - Posted by tony

Posted by tony on January 31, 2007 at 08:00:32:

Thanks Jason…i appreciate the Wisdom and input. I’ve heard that advice before and its the best position to be in. Either representing the seller or buyer.

QUESTION: Don’t know if you have the answer but i will ask anyway. If you are representing a “institutional” buyer…do you (or brokers) typically have an agreement to protect the buyers agent?

thanks in advance…

Tony