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Commercial mortgage borrowers lie all the time. They lie about the fact that destination property is in the contract. They lie about the money to make the down payment. You lie about the purchase price. On refinancing, they tell great stories about the value of their commercial property. They retain vital information about their past credit problems. You`re lying. If you have a fee contract with them (you support a commercial credit), you can sue him if you lied. The real reason you need a pricing agreement is to protect yourself from (1) borrower fraud and (2) unjustified cancellations of borrowers. Excuse me, but these are not family credits of 1 to 4 family, personal, family or domestic credits.

Industrial loans are not subject to the scheme. There is no legal right of retraction. If you cancel a commercial mortgage, in many cases you will still be indebted to your commercial real estate broker. Of course, to enjoy all the benefits, you must sign a commercial mortgage fee agreement. On the broker`s side, the agreement offers an essential non-circumvention clause that prevents you from bypassing the broker and going directly to a lender as soon as an offer has been made. If you work with a credit professional without a commercial mortgage contract, would you trust that they work in your best interest? If a mortgage expert didn`t have protection, what incentive would he have to find you a mortgage that works? A brokerage pricing agreement is a necessity for both parties. It can inspire confidence on your side while making sure the broker will not hesitate to work for the best result. An agreement signed between you and a broker protects both parties. It includes details of financing, compensation awarded to the broker at closing and all fees paid to the lender. I was so often unscrewed from my commission as a commercial real estate broker that I went to law school and became a lawyer. Imagine you go to law school with two children in diapers.