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Brokers Are Big Losers When Developers Pull the Plug

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In these trying times, real estate brokers working on new developments may be asking themselves, "If my project gets shelved by the developer, will I still get paid?" The Real Deal has your answer: NO. At Murray Hill's Jasper, which recently gave up the ghost and went hotel, brokers who sold the 43 units that found buyers (as well as the agents that represented those buyers), will not receive their commissions. Most brokerage contracts stipulate that brokers don't get paid unless the units close, and Jasper is no different. TRD writes, "It's a risk that brokers take nearly every time they do a deal, but one that looms much larger as more and more signed contracts fail to close in the current real estate market." The CORE Group was handling sales at the converted East 32nd Street office building, and CORE's CEO Shaun Osher is out some skrilla himself. He personally sold some units at Jasper, and he tells TRD's Candace Taylor, "I'm never going to see those commissions. It's very disheartening when a broker works very diligently and the deal falls through and the broker doesn't get compensated." The unfortunate collateral damage of this new era.
· Brokers out of luck when developments get converted [Real Deal]