Residential Redevelopment Proposal
(Address), Fort Lauderdale, FL
A Concierge Company for Florida Property Owners
ARCHITECTURE ENGINEERING CONSTRUCTION INTERIOR DESIGN REALTY Palm Beach Fort Lauderdale Sarasota Tampa Panama City
firstname.lastname@example.org 561.660.4018 apc1976.com
Fort Lauderdale, FL
Re: Redevelopment Proposal
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.
John August Burke
SAMPLE YARD SIGN
Coming Soon – New Construction
AVAILABLE – $3,100,000
(Address), Fort Lauderdale
(Realtor) – 555.555.5555
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.
A Concierge Company for Florida Property Owners that believes a single source provider delivers the best customer service possible!
How It Works
Sample commission comparison on selling a building lot/redevelopment property versus a new home on same property:
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”)
LISTING AGREEMENT between
13815 Emerson St. Suite 106
Palm Beach Gardens, FL 33418
(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.
(Realtor) Date ___ Builder – Atlantic, LLC Date___
Property Address/Brief Description: (Address), Fort Lauderdale, Fl 33301
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.
By:__________________________________ Date ________
By: ___________________________________ Date________
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
Adam R. Seligman, Esquire
Kevin Patrick Burke and John August Burke
13815 Emerson St – s-106
PBG, FL 33418
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
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
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
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.
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
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
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
(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.
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
(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
Very truly yours,
ADAM R. SELIGMAN
t:\aseligman\burke, kevin\builder-realtor memo, research\opinion letter.doc
M- Material L – Labor
I . SOFT COSTS AND HOMESITE IMPROVEMENTS
II. BUILDING 5,000 sq ft Under AC…1,000 sq ft Garage/Porches
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 email@example.com 561.660.4018 apc1976.com