Client Understandings, Services & Fees
Van Liew contracts with one financially qualified client only until that client's confidential, contractual assignment has been completed in its entirety. The client, through the confidential contract (which includes among other things all the terms and conditions of the assignment), authorizes Van Liew to effectuate the specified assignment (in Van Liew's name) to that assignment's completion date.
Within the confidential contractual agreement will be, among other things, the client's confidential, personal guarantee assuring Van Liew that the entire cost (all cash - no debt) of the assignment will be paid (transparently to the client and Van Liew only) through Van Liew, to the completion date of the assignment.
Upon execution of all of the confidential contractual understandings, the client will pay to Van Liew a deposit in the amount of $1,500,000, which deposit shall be a "draw" against the various fees to be charged by, or paid to Van Liew (as discussed below) to the completion date of the assignment.
- Land Purchase Agent: Upon the closing of the land purchase contract (must occur before construction can commence) Van Liew shall be paid a fee of 10% of the total cost of the land plus Van Liew shall be reimbursed for any and all expenses incurred in garnering governmental approvals, as well as any funded deposit monies shall be reimbursed to Van Liew. The deposit money shall be reimbursed to Van Liew upon the execution of the purchase contract, the balance of the expense reimbursements and the 10% fee shall be paid at closing through escrow.
- Construction Management Fee (CM): Van Liew shall be the on-site construction manager for the duration of the construction process through the receipt of the C of O. Prior to construction start the client and/or partner shall be presented a comprehensive Development Cost Analysis, inclusive of copies of all bid contractor, sub-contractor, and purveyor contracts. The Development Cost Analysis shall include, among other things, a comprehensive “Soft Cost” section, which section shall include loan servicing costs, should the client and/or partner elect to finance all or part of the total cost of development, inclusive of land cost. Van Liew shall be paid 10% of the total cost of development, net of the land cost, payable monthly in advance over the life of the construction process (i.e., to the receipt date of the C of O). Said CM fee shall be included in the “Soft Cost” section of the Development Cost Analysis.
NOTE: The total value of the Development Cost Analysis (net of the land cost) is not a guaranteed maximum contract. All contractor or sub-contractor contracts will be guaranteed maximum contracts whenever possible. Many may be cost plus contracts, however. Any change orders approved by the client and/or partner shall be added to the Development Cost Analysis with the result being the increase in the total cost of development, thereby resulting in the increase of the 10% CM fee. - Multiple Unit, Recreational Residential Development: Van Liew shall be the exclusive sales agent for the sale of units in such developments. Van Liew shall be paid a 6% sale fee in such developments.
- Property Management: Van Liew, at the request of the client and/or partner, subsequent to construction completion, shall act as property manager for fees to-be negotiated with the client and/or partner.
- Brokerage: Van Liew is a New York State licensed Real Estate Broker.