Is there a best-practice for ownership share in a client's project in lieu of fees? Are there standard agreements? I'm starting negotiation for a share in a new development. Ideally, I'd like to tie my fees to the value of the property at time of sale vs the construction cost, although it could be as simple as a lien on the property with interest for differed fee payments.
Best practice: don't even think about it. There are so many ways to screw you out of the fee it's not funny.
Tell the developer you'll start as soon as they legally transfer a shared interest in the property to you with your name on the deed and watch them run.
Even if they did there are dozens of ways to squeeze you out starting with bankrupting the project. 15% of 0 = 0. Worse than that you could end up on the hook to creditors ...
You'd have to be certifiably insane to do this with anyone you aren't married to. And I've seen that go bad, too.
Project Share
Is there a best-practice for ownership share in a client's project in lieu of fees? Are there standard agreements? I'm starting negotiation for a share in a new development. Ideally, I'd like to tie my fees to the value of the property at time of sale vs the construction cost, although it could be as simple as a lien on the property with interest for differed fee payments.
I know this is fairly common - how do you do it?
Best practice: don't even think about it. There are so many ways to screw you out of the fee it's not funny.
Tell the developer you'll start as soon as they legally transfer a shared interest in the property to you with your name on the deed and watch them run.
Even if they did there are dozens of ways to squeeze you out starting with bankrupting the project. 15% of 0 = 0. Worse than that you could end up on the hook to creditors ...
You'd have to be certifiably insane to do this with anyone you aren't married to. And I've seen that go bad, too.
I recently saw a presentation by a woman who has done this a few times with her firm, Synecdoche design. She seems pretty happy with it so far.
Most of their projects are to keep the doors open, but they do a couple for an ownership share looking at long term stability.
amateur law hour presented by jaded architects - take away: trust no man, everything is a liability, we are all going to die.
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