search

The Real Deal Logo

Trending

Tides’ original investors may be wiped out by preferred equity dealTides’ original investors may be wiped out by preferred equity dealFort Lauderdale crane collapse victim seeks over $50M in damagesFort Lauderdale crane collapse victim seeks over $50M in damagesLA court strikes down SB9 law allowing single-family lot splitsLA court strikes down SB9 law allowing single-family lot splitsHousing deal finally passes; here are the detailsHousing deal finally passes; here are the details
New York

Assessing advance commission payouts

Even as battles brew between developers and brokers, some new projects are still prepaying brokers

Sign Up for the undefined Newsletter

From the November issue: Recent attempts by Extell Development to recover commissions it paid to brokers after condos at the Lucida on the Upper East Side failed to close are having a ripple effect in the industry. Indeed, it’s not just the brokers in Extell’s crosshairs who are worried that the advance commissions they received years ago (and in many cases spent) are now in jeopardy. During the real estate boom, when it was the norm for developers to presell units before construction was finished, it often took up to two years from contract signing to closing. As a result, many developers offered a percentage of the sales commission to agents before closing as an incentive to bring clients to their developments. [more]