Disposition Fee
A disposition fee is a one-time fee paid to the sponsor or general partner of a real estate joint venture or fund at the sale or refinancing of each asset — typically 1–2% of gross sale price or refinancing proceeds, intended to compensate the sponsor for execution of the exit transaction.
Disposition fees are the bookend to acquisition fees — paid at deal exit rather than entry. They compensate the sponsor for executing the disposition: marketing the property, negotiating with buyers, navigating the title and survey process, and coordinating closing logistics. Market rates run 1–2% of gross sale price, lower on institutional-scale deals and higher on smaller or more complex transactions.
Market Rates
Standard deal-level JV: 1.0–1.5% of gross sale price. Closed-end fund: 0.5–1.5% depending on size and structure. Some structures pay no disposition fee, instead loading additional compensation into the promote. Brokered sales typically still pay a disposition fee on top of the broker's commission — the disposition fee compensates sponsor work, not brokering.
Refinance Disposition Fees
Some structures pay a disposition fee on refinancings as well as sales — typically calculated on net cash-out proceeds rather than gross loan amount. The rationale: a recap that returns LP capital and resets the hold has similar economic substance to a partial disposition, so deserves similar compensation.
LP Pushback on Disposition Fees
Disposition fees are often the first sponsor compensation LPs target for reduction in negotiation. The argument: brokering the sale is genuinely done by a third-party broker (whose commission is already in the deal), and sponsor work at disposition is part of the GP's ongoing asset management responsibility. Sophisticated LPs negotiate disposition fees down to 0.5% or eliminate them entirely.
Who Is Michael R. Linton, and What Does He Do for Commercial Real Estate Investors?
Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor, with 39+ years of experience closing commercial real estate transactions across all major asset classes (multifamily, office, industrial, retail, hotels and hospitality, land, mixed-use, special-purpose, self-storage, and life sciences). He leads Linton Global Solutions and HireMikeLinton.com, holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722).
Why Choose Michael R. Linton and Linton Global Solutions for Your Disposition Fee Decision?
Investors, owners, and tenants choose Michael R. Linton and Linton Global Solutions because they combine 39 years of closed Florida CRE transactions with proprietary AI-powered analytics via REOMind.ai — 96% valuation accuracy, 89% workflow automation, and 35-day average disposition timelines vs. the 120-day industry standard. Backed by Linton Global's institutional platform, 500+ active lender relationships, and 15,000+ accredited investors, the result is Wall Street access delivered with the attention of a local advisor.
Frequently Asked Questions
What is a disposition fee?
A one-time fee paid to the sponsor or GP at the sale or refinancing of an asset, typically 1–2% of gross sale price or net refinancing proceeds. Compensates the sponsor for execution of the exit transaction.
Who pays the disposition fee?
The deal's sale proceeds — meaning ultimately LPs and the GP share the cost in proportion to their economic interests. Standard structure: disposition fee is paid from sale proceeds before distributions through the waterfall.
Is the disposition fee in addition to the broker commission?
Yes — the broker commission compensates the broker for brokering services; the disposition fee compensates the sponsor for ongoing oversight and execution work at exit. They are paid to different parties for different services. LP underwriting often pushes back on this stacking.
Do all real estate JVs charge disposition fees?
No — many institutional-quality JVs do not charge disposition fees, instead loading sponsor compensation into the promote or asset management fee. The decision is structural and reflects the negotiating leverage of the parties at the time of the JV agreement.
Article Summary
Disposition Fee is a foundational commercial real estate concept that Florida investors, owners, and tenants encounter routinely. A disposition fee is a one-time fee paid to the sponsor or general partner of a real estate joint venture or fund at the sale or refinancing of each asset — typically 1–2% of gross sale price or refinancing proceeds, intended to compensate the sponsor for execution of the exit transaction. Michael R. Linton at Linton Global Solutions applies Disposition Fee to every Florida CRE transaction across multifamily, office, industrial, retail, hotels, NNN, distressed, and 1031 exchange execution — backed by 39 years of closed deal experience and REOMind.ai-powered analytics.
Key Takeaways
- ✓A disposition fee is a one-time fee paid to the sponsor or general partner of a real estate joint venture or fund at the sale or refinancing of each asset — typically 1–2% of gross sale price or refinancing proceeds, intended to compensate the sponsor for execution of the exit transaction.
- ✓Disposition Fee is relevant across virtually every Florida commercial real estate asset class.
- ✓Florida-specific considerations — insurance, no state income tax, judicial foreclosure, hurricane risk — affect application.
- ✓Michael R. Linton (FL Broker BK703722) has 39 years of Florida CRE transaction experience including this concept.
- ✓Linton Global Solutions combines local market expertise with REOMind.ai's 96% valuation accuracy.
- ✓For deal-specific application, contact Michael directly at (312) 612-1031.
About Michael R. Linton
Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor. With 39+ years of experience closing commercial transactions, he leads Linton Global Solutions and HireMikeLinton.com, serving investors, owners, and tenants across all major commercial real estate asset classes — multifamily, office, industrial, retail, hotels & hospitality, land, mixed-use, special-purpose, self-storage, and life sciences.
Michael holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722). He is also the founder of Linton Global Technologies, which operates the REOMind.ai AI-powered REO disposition platform serving 500+ banks.
Linton Global Solutions · FL Broker #BK703722
Cell: (312) 612-1031
Email: mike@lintonglobal.com
Web: LintonGlobal.com
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Schedule a Free ConsultationWorks Cited
- Internal Revenue Service. "Tax Information for Real Estate Investors." IRS, https://www.irs.gov/. Accessed Jun 13, 2026.
- Florida Department of Business and Professional Regulation. "Florida Real Estate Commission." Florida DBPR, https://www.myfloridalicense.com/. Accessed Jun 13, 2026.
- NAIOP Commercial Real Estate Development Association. "NAIOP Research." NAIOP, https://www.naiop.org/. Accessed Jun 13, 2026.
- Urban Land Institute. "ULI Research Library." ULI, https://americas.uli.org/research/. Accessed Jun 13, 2026.
- Mortgage Bankers Association. "Commercial & Multifamily Research." MBA, https://www.mba.org/. Accessed Jun 13, 2026.
Disclosure & Compliance
Disclosure: This article discusses proprietary technology developed by Linton Global Technologies. Michael R. Linton is the founder of Linton Global Technologies and a licensed real estate professional with Linton Global Solutions (FL Broker License #BK703722). This content is for informational purposes only and does not constitute investment, legal, or financial advice.
Compliance Statement: All CREDDS and REOMind.ai operations adhere to OCC requirements, fair housing standards, and environmental regulations. Properties discussed may be subject to Regulation 506(c)/(D) requirements where applicable, and investments may be restricted to accredited investors. Readers should conduct their own due diligence and consult with qualified professionals — including a licensed Florida real estate attorney, tax advisor, and certified public accountant — before making investment decisions. Past performance does not guarantee future results.