What is a brokerage agreement?
A brokerage agreement is a type of contract wherein one party agrees to act as a sales agent of another, who is called the principal.
What is the standard business broker fee?
Typically, the commission will be anywhere from 8-12% of the total sales price paid at closing. The range of the percentage depends mostly on the business size and its complexity.
What is the purpose of a business broker?
A business broker is an individual or company that assists mainly in the purchase and sale of small, main street businesses. Their tasks include helping companies to secure a favorable price, submit paperwork correctly and fulfill any licensing and permitting requirements.
How binding is a buyer broker agreement?
Are buyer-broker agreements enforceable? The agreement is a legal contract. If either party fails to abide by the terms, the other party has the right to seek legal enforcement of the contract.