From the July issue: Divorce can be ugly, especially when one party doesn’t want to be known as a divorcée.
As construction projects turn south, developers and their marketers
are increasingly splitting up, leading to battles over termination
fees. These fees, which are often specified in the original marketing
contract, used to be viewed by developers as the cost of changing their
brokerage midway through a project, said real estate attorney Gary
Rosenberg. Typically, when the developer terminates an agreement with
their marketing firm without cause, payment is due.
However, as the market slows, developers often don’t have cash on
hand to make that payout, which can be on the order of $500,000. Comments

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