Assignment Fee
Hi BP Family,
I believe in being open and honest with sellers about my assignment fee.
I have not done my 1st deal as yet. I plan on telling sellers that if the final sales price (to the investor or retail buyer) is higher than the sellers negotiated price (with me) then sellers will receive 50% of the excess amount minus my assignment fee (which will be capped at 10K)
My reasoning for doing this is because:
1. I don't want the sellers to think I am taking advantage of them.
2. someone told me that if I do receive a large assignment fee i.e. 20K-50K,
then sellers might sue me.
3. I think offering them 50% of the excess amt will give them the incentive to
sign the purchase and sales agreement
As far as I know double closings are not legal in Canada and again I want full disclosure with sellers. So how do I handle earning a large assignment fee without feeling guilty?
Belinda