i have a seller of a 3bedroom flat and i have a buyer of thesame how do i make my profit from this scenario??

the two parties dont know each other!

which percentage should be my service fee?

who should i charge the fee?the buyer or the seller??

how do i relate with both parties??

constructive guidiance will be well and soberly appreciated.
thanks.

To be honest with you, it is quite difficult (but not impossible) to represent both the buyer and seller in a property transaction. Let me ask you, if the buyer asks for a reduction in the price of the property, how do you ensure that considering the fact that your remuneration depends on the amount the property is sold for?

First of all, I would advise that you get honest with both the buyer and seller. Don't try to cut corners or inflate the price, they would get to know in the end.

Inform the seller that you are going to act for him as an agent and he is going to pay you for your services if you bring him a buyer for his property. Tell him to prepare a Power of Attorney, an Agency Agreement over that property or at least a letter stating how much you would be paid for your services.

As to your fees, the seller may indicate that he is interested in adding your fee to the property price and after d transaction, he removes it and gives you. The problem with this is if he changes his mind and shortchanges you.

Another alternative is to agree with the seller on a certain percentage of the selling price to be paid to you. Once agreed, let him write a letter to that effect and the two of you should sign it.

Also if your fee is 10%, you can charge 5% each from both buyer and seller. If 5%, you charge 2.5% each like that...

If you have further questions, post them here, send me a PM or mail me at

biz.lawyer(at)consultant.com

cheers

Thanks Mrmacjay.this is insightful,may God bless you.i will keep you posted as all goes.

thanks,the seller has agreed to pay 5%.does this mean that i have to go to the buyer to negotiate the 5% from his end ?making 10% overall??

how do i collect my 5% from( 1)the byer (2)from the seller??

is it before transaction?

will the buyer have to pay through me?

does seller need to know what what % am collecting from buyer and vice versa??

thank you.

You're welcome. Will respond shortly.

As regards the payment from the buyer, you should approach him and inform him that you are representing both parties in the transaction. Inform him that for representing him, your fee is 5% of the price of the property. However, note that you may negotiate it downwards to around 2.5% if he is insistent on a reduction. This is because unlike the seller, the buyer still has other fees to pay. E.g Legal fees.

You collect your fees from both the seller and the buyer at the end of the transaction when documents have been signed and the money for the land has been paid.

Also, the payment doesn't need to go through you. It can be paid directly to the Seller. If you wish for the payment to be paid through you, a Power of Attorney or Written letter of Authority to that effect would be requisite.

Finally, I must warn you, once you agree to receive money from either of the parties, you are deemed to be that person's agent in the eyes of the law. Thus, you are required to disclose that fact to your principal (in this case, both parties). That is why I said in the beginning, that you must be 100% honest.

Just explain to them that you are acting for both of them and you are required to charge them for your services. I advise that you tell them separately but be 100% honest.

thank you very much.ill do as u have said.

i have responded to your pm.

most appreciated.