Residual Fee Sales
Representation and Fees
Since 2002, MPI has been representing condo projects that own residual, unsold leased-fee interests in selling them to the remaining lessees or third-party investors (open market sealed bid procedure). We call this Residual Fee Sales (“RFS”).
RFS is a program developed by MPI to represent and assist associations who acquired the leased-fee interest from the landowner and own remaining unsold leased fees – marketing them to remaining leasehold owners, fielding inquiries from buyers, administering sales (from contracting to closing), pricing (initially and ongoing), administering the association’s loan (includes analysis, recasting payments and refinancing), budgeting carrying costs, lease rent renegotiation, advising the associations Board and whatever else might arises concerning the associations ownership and sale of its remaining leased-fees.
Generally, MPI’s fee or commission is a percentage of the association’s sales price, paid from escrow when a leased-fee sale is closed. No closing, no fee. Fees are priced on a case-by-case basis. MPI’s fee is incurred by the association (MPI’s representation contract is with the AOAO), but it is typically passed down (charged) to the buying apartment owner as part of their sale agreement with the association (no charge to the AOAO).
Reputation and Track Record
MPI is the only entity we know of who has a program to represent condo projects in residual fee sales. Most of the projects MPI represented in bulk fee purchase have residual fees and hired MPI to sell them under its RFS program. Click here for a list of MPI’s RFS client projects.