FAQ: Can broker fees or commissions be included in the sale price of an LPFM station assignment?

Select FAQ Category:

§73.865(a)(1) limits consideration promised or received to legitmate and prudent expenses of the assignor (the party "selling").  

The rule goes on further to define those expenses as those that are reasonably incurred by the assignor in obtaining and constructing the station.  

Brokerage fees, commissions, fees associated with listing the station for sale, etc. are not associated with obtaining and constructing the station.

Therefore, our answer is.. no.


LPFM eligibility and ownership questions
LPFM enhancements and change applications
Answer Date: 
Friday, April 23, 2021