Posted by Irwin on May 01, 1999 at 08:08:17:
Now I understand it. When you say “contract”, you meant purchase agreement for cash, not land contract. What the attorney wants is a kickback on the profit you make on reselling the property. This may or may not be ethical on his part depending on whether he’s discounting the payoffs on his clients’ mortgages. Also, it’s possible that he’s advised his client about what he’s doing and it’s okay with them as long as they get the payoff they want.
It’s really not your problem to judge his ethics. The question is whether or not you can make enough to pay him the kind of referral fee he’s asking. 3-6% of sale price (3 sounds okay,6 is way too much) can be a lot of money, and if you sell on l/o or carry a second and you don’t get paid, what happens then? These are things that you have to work out with him.