Definition of Acquisition fee:
An acquisition fee is a charge from a lessor or lender to cover the expenses incurred for arranging a lease or loan. Acquisition fees may also refer to charges and commissions paid for the acquisition or purchase of real property. Common examples include closing costs, real estate commissions, and development and/or construction fees. A buyer, or lessor, may pay acquisition fees upfront or add them to the loan or lease amount (i.e., pay them over the term of the loan).
An acquisition fee, sometimes hidden in the price, is charged by a lessor to cover the expenses, usually of the administrative variety, that they incur in establishing a lease or loan.
Leasing charge that covers the lessors administrative cost in arranging the lease. It usually includes expenses for obtaining the lessees credit reports, reviewing the lease documentation, verifying the insurance policy, etc.
How to use Acquisition fee in a sentence?
- An acquisition fee, sometimes hidden in the price, is charged by a lessor to cover the expenses, usually of the administrative variety, that they incur in establishing a lease or loan.
- Portfolio managers, specifically those that manage real estate funds, may also assess acquisition fees.
- Lessees and borrowers can pay the fees upfront or add them to the lease or loan, though the former method is more beneficial to the borrower.
Meaning of Acquisition fee & Acquisition fee Definition