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Acquisition Fee
In real estate investment, an acquisition fee compensates an adviser or manager for services associated with acquiring and closing a new investment.
In real estate investment, an acquisition fee compensates an investment adviser or manager for services associated with acquiring a new investment. INREV identifies finding an opportunity, negotiating the transaction and bringing the purchase to closing as examples of covered work.
The fee relates to acquisition services, while an Asset Management Fee relates to managing investment assets. The label alone does not establish the amount, calculation base or payment terms. It also does not describe every cost of purchasing a property.
Source: INREV Global Definitions Database: Property acquisition fee.
Frequently Asked Questions
What does a real estate acquisition fee pay for?
INREV's definition covers acquisition services such as sourcing an investment, negotiating and closing the deal. It does not prescribe a universal percentage or establish the terms of a particular transaction.
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