Last Monday insider discussed out of home brokerage fees.  Today Insider talks the other parts of an out of home brokerage agreement.

Term

A typical term is 3-12 months.  Insider leans towards 3-6 month agreements.  Out of home transactions are simple with a finite number of buyers.  You’ll know at the end of 6 months whether a transaction will occur.

Tail

Brokerage agreements require you to pay a fee if  a transaction is consummated during the agreement or within 12-18 months after the agreement expires.  If your broker introduces you to a company which buys you 9 months after an engagement expires you’ll owe your broker a fee.  Insider thinks that it’s important for you to ask your broker to supply you with a list of prospects which the broker has introduced you to just so there’s no dispute over whether a fee is or isn’t due after a brokerage agreement has expired.  Ask for the list at expiration of your brokerage agreement.

Announcements

Most agreements will give the Broker the right to announce a transaction after it is consummated.  This usually means the names of the buyer and seller.  If you don’t want your name to be used then you should say so in the brokerage agreement.

For tips on dealing with brokers see 4 ways shady outdoor brokers try to cheat you or 6 steps to protect yourself when using an outdoor advertising broker.  What’s your advice for working with brokers?  Let Insider know using the form below.

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