Fees, not percentage of bonus, is the way to go!

My advice to the homeowner associations is to pay their legal representative a flat fee. Each homeowner pays the same regardless of acreage because the contracts are written the same except for plugging in the acreage and bonus figures.

For example, if 320 acres of a section is negotiated at $20,000 per acre, and the percentage is 4%, that comes up to a $256,000 paycheck! Come on now...over a quarter million dollars!

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Permalink Reply by RL on July 17, 2008 at 9:51
Why should the guy with 1 acre pay more than the guy with 1/2 for the exact same service? Kinda like a tax preparer: if two people need a standard tax preparation and one made $30k and one made $35k, why would the amount of income matter. They both paid the same amount for the same service. Don't look at it as one getting more than another, look at it as everyone paying the same for the exact same service!

The key is to get a savvy negotiator from the get go!

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