1.

Atlantic, LLC

LAS OLAS SINGLE FAMILIY HOME _.jpg

Residential Redevelopment Proposal


For


(Realtor)


(Address), Fort Lauderdale, FL


555.555.5555


2.

                                                      Atlantic, LLC                             

                  A Concierge Company for  Florida Property Owners 

         ARCHITECTURE      ENGINEERING       CONSTRUCTION      INTERIOR DESIGN      REALTY         Palm Beach               Fort Lauderdale               Sarasota               Tampa          Panama City                        

              jburke@apc1976.com            561.660.4018               apc1976.com

6.03.2020

To: (Realtor)

Fort Lauderdale, FL 

Re: Redevelopment Proposal

(Address)

(Realtor),

Your property listing at (Address) fits the criteria for our Residential Redevelopment Program for building lots and redevelopment (tear- down) properties.

This program allows the listing Realtor to market both the property and a new home on the property at the same time with no compensation to us in the event we can’t pre-sell the new home and the property is sold to another party.

In the event we secure a Buyer for the proposed new home, Builder to pay all of the realtor commissions (5%) on both the property and the new home to Brokers upon Buyer closing on the house and property.

I have attached documents that further explains our program and process. Let me know if you have any interest, I am available to meet whenever is good for you.

Hope all is well with you.

Regards,

John August Burke

Owner/Project Manager

  3.

                 SAMPLE YARD SIGN

                                         Atlantic, LLC

                                                    Coming Soon – New Construction     

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                           AVAILABLE – $3,100,000

                                           (Address), Fort Lauderdale

                                                     (Realtor) – 555.555.5555

                                                                   (Agency)               

REALTORS:  ADVERTISE ONE OF OUR NEW HOME DESIGNS FOR SALE ON YOUR CLIENT’S PROPERTY AND WE WILL PAY THE 5% REALTOR FEES ON BOTH THE PROPERTY AND NEW HOME! 

Atlantic is looking to establish partnerships with local residential realtors to package new homes on building lots and/or “re-development” (teardown) properties. This unique marketing tool has the potential to increase listing commissions while maintaining the original MLS listing in the event a buyer is interested in the property without the new home.
KP, Barb and Johnny pic.jpg

A Concierge Company for Florida Property Owners that believes a single source provider delivers the best customer service possible! 

 4.    

        How It Works

  1. Listing Agent to sign a listing agreement with Seller for property as “vacant land”  with a provision that allows the Listing Agent to sell the property with no liability to Builder. 
  2. Listing Agent to sign the  Builder/Broker Agreement with Builder that includes a 5% Realtor commission on property and new home paid by Builder with an agreed price for the vacant land and the proposed new house plan with pricing and standard features for the MLS.
  3. Listing Agent to list the new home including the land on the MLS for the agreed amount.
  4. Builder provides an Atlantic yard sign with the agent’s name and phone number (see attached, all sales calls go through the listing agent, Atlantic manages the sale).
  5. When a Buyer contacts the listing agent for information about the new house, the agent puts the Buyer in contact with Builder, Builder manages all the selling.
  6. Builder meets with Buyer and agree on plans, standard features, pricing and contract to build with 10% deposit from Buyer held in Buyer’s escrow until closing 
  7. Buyer signs a contract with Seller to purchase property directly from Seller for an agreed price.
  8. Seller is paid in full with Realtor commissions disbursed at closing before the start of any construction.
  9. Seller has no financial responsibility to Builder if property is sold to another party.                                                                                 

                            Commission Comparison

Sample commission comparison on selling a building lot/redevelopment property versus a new home on same property:

Original listing:  

Building lot or redevelopment property- $1.3m @ 5% fee = $65,000

New home package:

Estimated cost for a new 5,000 sq ft house – $1.8m and property $1.3m =  @ 5% fee = $155,000   

(Square footage is calculated as “living area under AC”)

        5.

                        Atlantic, LLC 

        LISTING AGREEMENT                                                        between

Atlantic (Builder)

13815 Emerson St. Suite 106

Palm Beach Gardens, FL 33418

And

(Realtor)) Fort Lauderdale, FL

1. Builder agrees to enter into a listing agreement with Realtor to build a 5,000 sq ft new home    (plans to be determined) according to New Home Standards (see attached) on  (?) , Fort Lauderdale, FL 33301 (Property) for the agreed amount of $1,8m. 

2. Buyer to purchase Property directly from Seller in the amount of $1.3m 

3. Buyer to enter into $1.8m contract with Builder to build the new 5,000 sq ft new home.

4. Builder to pay a 5% realtor commission on property and the new home to Brokers upon Buyer closing on the house and property..

5. Seller to be paid $1.3m for property in full before any construction begins.

6. Seller has the option to sell the Property with no financial liability to Builder. 

X_____________________________ X___________________________

 (Realtor)                                Date ___              Builder – Atlantic, LLC                  Date___

    6.

        REALTOR-BUILDER AGREEMENT

Builder:  Atlantic

Property Address/Brief Description:  (Address), Fort Lauderdale, Fl 33301

Realtor:  (Realtor) 

Prospective Buyer:

In connection with the proposed sale of the real estate described above, if a sale is made to the Prospective Buyer

Builder to pay a 5% commision to Realtors on property and new home —  (5% x $3.1M = $155,000) upon Buyer closing on Property.

This Agreement (check, if applicable): _____ modifies and amends any previous offer of compensation made through the MLS or otherwise.

This Agreement is subject to all applicable rules, regulations and procedures of any local broker-builder cooperative sales guidelines, if any. The parties agree to keep this Agreement confidential and not make any public announcements or disclosures with respect to this Agreement without the written consent of the Builder. 

This Agreement may be supplied for informational purposes to any title company, lender or other person preparing closing documents or handling the closing.

Builder:

By:__________________________________ Date ________                

                      Atlantic, LLC          

Realtor:         

By: ___________________________________        Date________              

                       (Realtor)        

     7.   

          WARD • DAMON

                                      A T T O R N E Y S  A T  L A W

                   4420 BEACON CIRCLE

                                                WEST PALM BEACH, FL 33407

Tel: (561) 842-3000

Fax: (561) 842-3626

www.warddamon.com

Adam R. Seligman, Esquire

ASeligman@warddamon.com

Kevin Patrick Burke and John August Burke

Atlantic 

13815 Emerson St – s-106

PBG, FL 33418

OPINION LETTER

Re: Referral Fees: Commission Agreement Between Builder and Broker

To Whom It May Concern:

This firm is counsel to the Atlantic, LLC

(hereinafter “Atlantic”). Atlantic has requested our opinion letter relative to the payment

of commission, referral and/or consultation fees for brokers referring work to Atlantic for

construction.

This Opinion has been prepared and is to be construed in accordance with the

Report on Third-Party Legal Opinion Customary Practice in Florida, dated December 3,

2011 issued jointly by the Business Law Section and the Real Property, Probate & Trust

Law Section of The Florida Bar (the “Report”) and is incorporated herein, as appropriate

by reference.

This opinion letter is furnished to Atlantic pursuant to its request. Capitalized

terms used but not otherwise defined herein shall have the definitions set forth in such

other related documents, if any. This opinion letter is limited to the matters expressly

stated herein. No opinions are to be inferred or implied beyond the opinions expressly so

stated.

We have examined the Florida Statutes, Florida administrative Code and other

documents as we believe necessary, and have made such inquiries as we have deemed

relevant and necessary as a basis for the opinions hereafter set forth.

    8.

November 12, 2015

Page 2 of 4

Based upon the foregoing, and subject to the qualifications set forth below, we are

of the opinion that:

1. Atlantic is a limited liability company duly formed and validly existing and

in good standing under the laws of the State of Florida, has the power to own its assets

and to transact the business in which it is currently engaged. Atlantic has the power to

execute, deliver and perform the terms and conditions of any referral or commission

agreement and all of the documents contemplated thereby. Atlantic has taken all

necessary corporate action to authorize the execution, delivery and performance of any

referral or commission agreement.

2. All necessary and appropriate authorizations, consents or approvals as

required by the Articles and By-Laws or Operating Agreement of Atlantic, the laws of the

State of Florida or any other agreement, trust or other instrument of which we have

actual knowledge in connection with the execution, delivery and performance by

Atlantic.

3. Any referral or commission agreement, and all documents and instruments

referred to therein to be executed, delivered and performed by Atlantic has been duly

authorized, executed and delivered by Atlantic and constitute legal, valid and binding

obligations of Atlantic enforceable in accordance with their respective terms.

4. No consent, approval, authorization or other action by, or filing or

registration with, any governmental authority of the United States or the State of Florida

is required by or on behalf of Atlantic to execute and deliver the referral or commission

agreements and to close the transaction contemplated thereto.

5. To our knowledge, there is no action, suit or proceeding, at law or in equity,

or by or before any governmental agency, now pending or overtly threatened in writing

against Atlantic that challenges the validity or enforceability of, seeks to enjoin the

performance of, or seeks damages with respect to, any referral or commission agreement.

For avoidance of doubt, please be advised that in rendering this opinion we have made

no independent investigation, including, without limitation, any search of court records,

the files of our firm or the files of Atlantic.

6. There appears to be nothing illegal or improper for Atlantic to agree to pay

a broker a disclosed commission determined by the costs of a lot and construction.

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. See 12 U.S. Code Chapter 27, Section 2607(a). However, this limitation should be

not construed to prohibit payments made for goods and facilities actually furnished or

for services actually performed. See Section 2607(c)(2). Therefore, one could argue this

means brokers can be paid a fee for promoting another’s products/services. The

department may investigate what they determine to be high prices, and “if the payment

  9.

November 12, 2015

Page 3 of 4

of a thing of value bears no reasonable relationship to the market value of the goods or

services provided, then the excess is not for services or goods actually performed or

provided.” 24 CFR 3500.14(g)(2). Further, in determining whether the payment exceeds

the reasonable value of such goods, facilities or services, the value of a referral (i.e. the

value of any additional business obtained therefrom) will not be taken into account.

7. Therefore, there appears to be nothing illegal or improper for a builder to

agree to pay a broker a commission or referral fee determined by the costs of

construction in the event the buyer decides to use the builder. The builder and broker

could claim that this is a marketing or consulting expense. However, this type of

arrangement must be fully disclosed to the buyer (i.e. that the broker is receiving not

only a commission on the purchase of the lot from the buyer, but is also received a

commission based on the construction costs of the builder which sum is ultimately paid

by the buyer). See Article 6 of the Code of Ethics and Standards of Practice of the National

Association of Realtors. Therefore, before the buyer agrees to buy the lot, the agent should

disclose the buyer’s or contractor’s obligation to pay a further commission upon the costs

of the eventual construction. Without this disclosure, it is illegal in Florida for any real

estate broker to be compensated for referring or placing business in connection with a

buyer’s transaction. We would also suggest any such transaction include a written

agreement between the builder and the broker specifically detailing how the commission

or fee is to be paid. We can prepare such an agreement if needed.

The opinions previously expressed are subject to the following limitations and

qualifications:

(a) We are members of the Bar of the State of Florida only and do not

purport to be experts on or generally familiar with the laws of any other state.

(b) In rendering this opinion, we have relied on the certificates,

telegrams and other documents of public officials, and on the certificates, instruments,

documents or telegrams of the officers of Atlantic and the representations of Atlantic.

(c) We have assumed, without investigation, the authenticity of any

documents and instruments submitted to us as originals, the conformity to the originals

of any document or instrument submitted to us as a copy and the genuineness of all

signatures on such originals and copies except for any documents executed in our

presence which we have verified as being executed by the party named thereon.

(d) Our opinions are based upon the current law as of the date hereof

and are subject to any change in such law, including judicial and administrative

interpretations which may be reported or occur subsequent to the date hereof. The

undersigned is under no obligation to advise of any such changes after the date hereof.

  10.

November 12, 2015

Page 4 of 4

(e) When reference is made in this opinion letter to our “knowledge,”

such reference means the actual knowledge of those attorneys who have given

substantive attention to the transactions contemplated hereby and does not include,

among other things, constructive knowledge of matters or information located in the

public records.

(f) Our opinions contained above are qualified and limited to the extent

(i) that applicable bankruptcy, insolvency, reorganization, moratorium or other similar

laws affecting the enforceability of rights of creditors generally; (ii) that the availability of

the remedies of specific performance, injunctive relief or any general equitable principles

whatsoever is subject to the discretion of the courts having jurisdiction thereof and may

be otherwise totally unavailable; and (iii) that the existence of certain laws and judicial

decisions and certain procedural remedies under the Florida Uniform Commercial Code

and other applicable Florida and Federal laws and statutes.

Our opinions are solely for the information of the addressee and Ward, Damon,

Posner, Pheterson & Bleau, P.L., their successors or assigns of this opinion letter, and is

not to be quoted, in whole or in part, circulated, reproduced or otherwise referred to, nor

filed with any governmental agency or other person, without our prior written consent.

Other than the addressee of this opinion letter no one is entitled to rely upon this

opinion.

Very truly yours,

ADAM R. SELIGMAN

ARS/cp

t:\aseligman\burke, kevin\builder-realtor memo, research\opinion letter.doc

                                                                                                                                        11.                   

                Atlantic  

           New Coastal Contemporary Home

                (Address), Fort Lauderdale, FL

New Home Standard Features 6.01.2020

                                        M- Material     L – Labor

Items Included:

I .    SOFT COSTS AND HOMESITE IMPROVEMENTS

  1. Design, Architectural and Engineering Plans 
  2. Permit and Impact Fees 
  3. Building Lot – 8,125 sq ft +-
  4. Soil Testing, Civil Engineering and Surveying 
  5. Pool, Pavers, Plantings, Privacy Wall/Gates, Sod and Sprinklers M+L Allowance – $100,000
  6.  Utilities – New Sewer, Water, Gas and Electric Services (if available)
  7. New Seawall and Dock

II.     BUILDING  5,000 sq ft Under AC…1,000 sq ft Garage/Porches

  1. Foundation – Pilings, Monolithic Concrete Footing and Slab
  2. Shell – Concrete Block, Tie Beam System 
  3. Walls – 10’ Ceilings 
  4. Roof –  Peel N Stick Underlayment System with Flat Concrete Tile Shingles
  5. Glass – PGT WinGuard Impact Aluminum Windows and Doors
  6. Exterior Finishes – Stucco Walls/Overhangs — Painted Wood Facia Boards — Aluminum Gutters
  7. Insulation – R4 Reflective Wall Insulation — Nom 5.5 – R20 Spray Foam Under Roof  Insulation
  8. Drywall –  5/8” Ceilings and ½” Walls Material with Paintable Smooth Finish
  9. Trim – 3″ “Atlanta” Style Window and Door Casings  — 7” Molded Baseboard Molding  7″ Crown Molding in Living Room, Dining Room, Family Room and Foyer — Solid Composite  Panel Doors 
  10. Closet Systems – $15,000 M+L Allowance                                                      
  11. Paint – Benjamin Moore® Paint or Equal for Walls and Trim (limit 3 wall and 3 trim colors)
  12. Electrical – Decora “Paddle” Switches and Outlets to code — 30 Recessed Lights in Kitchen, Baths, and Hallways — $5,000 M Allowance for Surface Mounted Light Fixtures — Garage Door Openers — Three Exterior Outlets — Three Telephone and Cable Outlets — 400 Amp Service
  13. HVAC – Two Carrier or Equal Central Air-Conditioning Systems
  14. Plumbing – Kohler Wellworth Fixtures, Solid Wood Vanities, Solid surface Quartz Countertops, Accessories, Frameless Shower Doors —  Two In-Line Tankless Gas Hot Water Heaters — Three Exterior Hose Bibs
  15. Bathroom/Showers – $12 sq ft M+L  Allowance included for Bath Floors and Shower Walls/Floors
  16. Cabinetry – Countertops — Appliances — $100,000 M+L Allowance for Kitchen, Pantry, Laundry Room and Wet Bar
  17. Flooring –Engineered Wood or Porcelain Plank Tile 
  18. Builder to Provide Professional Cleaning Service at Project Completion

Pricing –  New Home – $1,875k      Property – $1.3m –     Total -$3,175k

                 A Concierge Company for  Florida Property Owners 

         ARCHITECTURE      ENGINEERING       CONSTRUCTION      INTERIOR DESIGN      REALTY         Palm Beach               Fort Lauderdale               Sarasota               Tampa          Panama City                                      jburke@apc1976.com            561.660.4018               apc1976.com

The Team

Kevin Patrick Burke


OWNER/PROJECT MANAGER
License - CGC-1521443
Real Estate Broker License - BK-3158308

JOHN AUGUST BURKE


OWNER/PROJECT MANAGER

Barbara Pedersen


OWNER/PROJECT MANAGER
License - ID6391

Victoria Griggs


OWNER/PROJECT MANAGER
License - ID6391

Taner Hamzawi


ENGINEERING
License - 79154

Timothy Ray Schrock


ARCHITECTURE
License - ID6391
License - AR95745

Yurien Santana


Electrician On Call

Electrical License - EC-13007498

B & W Air Conditioning



AC License - CMC-12500568

Fernandez Plumbing



Plumbing License - CFC-1427568