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I would like to bring a buyer & a seller together. How do I secure my commission before exchanging details?

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Answers (2)
Kathryne Pusch
ConsultKAP Inc./Business Brokers Network
GA

Avi-- Before you receive any commissions, you need to determine the state requirements where you live for legally doing so. In many states, including GA, this would be performing Business Brokerage without a license, which is against the law. The rationale for this, as with any license law, is that a business purchase and sale is a complicated process with many opportunities to harm the buyer and/or seller if one is not an expert in the industry.
At minimum, both parties need an attorney who understands the business P & S process and can document it contractually, and you need to be sure you are both competent and legally able to represent one or both of them and earn a commission.

May 26, 2010
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JM Biz Solutions
President
Delaware County, PA

Avi, you always want to have your commission agreement in place before there's even a talk of finding a buyer or seller.

My advice is go to an attorney and spend the couple hundred dollars to have a contract drawn up that you can use for all of your deals in the future. Of course you can write something up yourself but if what you write ends up having a loophole, you're out of your commission. Whatever you do, DO NOT release the contact info of the other party to your client before you have something written in place because at that point they will more than likely work together to cut you out of the deal.

May 26, 2010

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