Condo-Type Shopping Center Has Obstacles

QUESTION: I own a property zoned for a small shopping center. It now has just an old house and vacant land. But getting financing for the center is virtually impossible today. What do you think of the idea of building a condo shopping center where each firm would own their portion of the building?

ANSWER: I am not aware of any successful condominium shopping center. Although there are a few successful condominium office buildings, most have not done very well because many businesses don’t want to be locked into a particular space and location. A growing business needs more space whereas one which is not doing well or needs a different location wants to be free to move when their lease expires.

Nice try, but I’m not excited about your idea.

Broker Wants His Fair Share

Q: I am a licensed real estate broker specializing in commercial properties. One of my best clients, on a business trip to California, spotted a commercial property for sale he wants to buy there. He wants me to represent him in making the purchase offer. But I am not licensed in California.

I phoned the listing agent and he was most cooperative with information about the property. My client wants to submit an offer through me. How can I best protect my entitlement to half of the sales commission?

A: The California listing agent has no legal duty to pay you any sales commission, since you do not have a California real estate sales license. However, most California realty agents gladly pay finder’s fees to out-of-state agents who refer buyers.

I suggest you discuss this matter with the listing agent and obtain a written finder’s fee referral agreement before submitting your client’s purchase offer. For further details, consult your attorney.