Texas Enforceable Non-Circumvention & Fee Protection Policy
1. Governing Law & Reasonable Scope
This Policy is governed by the laws of the State of Texas. In accordance with Texas Business & Commerce Code §15.50, the restrictions herein are intended to be reasonable in duration (24 months) and geographic scope (covering properties sourced or structured through our program) to protect the Company's legitimate business interests, including proprietary financial vetting processes and attorney-drafted deal structures.
2. Protective Covenant & Non-Circumvention
The Client irrevocably agrees not to circumvent, avoid, or bypass the Company to negotiate directly with any property owner or seller. This protection applies regardless of whether the property was introduced by the Company or sourced by the Client, as the value provided is the attorney-backed financing structure and ATR certification required for a compliant closing.
3. Facilitation Fee & Liquidated Damages
● Facilitation Fee: A success fee of 3.3% of the total sales price is due at closing.
● Liquidated Damages: Texas is a "second-look" jurisdiction regarding liquidated damages. Parties agree that actual damages for circumvention are difficult to estimate at the time of contracting. Therefore, a breach of this policy triggers Liquidated Damages of 6.6% (2x the standard fee), which the parties agree is a reasonable forecast of just compensation for the loss of specialized professional labor and proprietary systems.
4. Mandatory Closing Requirements (Texas Compliance)
To ensure the transaction meets Texas Property Code and federal Dodd-Frank standards, the following are non-negotiable conditions of the program:
● Proprietary Documents: Use of Company’s attorney-drafted Promissory Note and Deed of Trust.
● Third-Party Servicing: Mandatory use of a licensed third-party servicer to manage payments and escrow.
● Escrow Instructions: Irrevocable standing instructions filed with the Texas title company to disburse fees at closing.
5. Recovery of Attorney’s Fees
In accordance with Texas Civil Practice and Remedies Code §38.001, the prevailing party in any legal action arising from a breach of this written contract shall be entitled to recover reasonable attorney’s fees, court costs, and all related legal expenses.
6. Severability & Reformation
If any provision of this Policy is held by a Texas court to be overbroad or unenforceable, the parties authorize the court to reform the provision to the minimum extent necessary to make it enforceable while preserving the original intent of fee protection.