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Real Estate Finders Fee Agreement

Real Estate Finders Fee Agreement Template for United States

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Key Requirements PROMPT example:

Real Estate Finders Fee Agreement

"I need a Real Estate Finders Fee Agreement for my property development company to engage multiple independent property scouts in California, with a tiered commission structure and a 12-month term starting January 2025."

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Document background
A Real Estate Finder's Fee Agreement is essential when engaging individuals or companies to locate suitable properties or buyers/tenants. This document is commonly used in the United States real estate market to protect both the finder's interests in receiving compensation and the client's interests in defining specific requirements and conditions. The agreement must comply with state-specific licensing requirements and federal regulations, particularly in jurisdictions where finders must be licensed real estate professionals. It typically includes detailed service descriptions, fee structures, payment triggers, and any exclusivity arrangements.
Suggested Sections

1. Parties: Identification of the finder and the property owner/client

2. Background: Context of the agreement and relationship between parties

3. Definitions: Key terms used throughout the agreement including 'Finder's Fee', 'Property', and 'Prospective Buyer'

4. Services: Detailed description of finder's services and obligations

5. Fee Structure: Amount and payment terms of the finder's fee

6. Term and Termination: Duration of agreement and termination conditions

7. Representations and Warranties: Statements of fact and promises by both parties

Optional Sections

1. Exclusivity: Terms of exclusive rights for the finder to provide services for specific properties or clients

2. Non-Circumvention: Prevention of direct dealings between owner and introduced parties without finder's involvement

3. Confidentiality: Terms regarding protection and non-disclosure of confidential information shared during the engagement

Suggested Schedules

1. Schedule A - Property Details: Description of target properties or investment criteria

2. Schedule B - Fee Calculation: Detailed breakdown of fee structure and calculation method

3. Schedule C - Required Qualifications: List of required licenses or certifications, if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
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Industries

State-Specific Real Estate Laws: State-level regulations governing real estate transactions, including licensing requirements for finder's fee recipients, and specific restrictions on fee amounts and structures

RESPA (Real Estate Settlement Procedures Act): Federal law governing real estate transactions, including restrictions on kickbacks and referral fees, and disclosure requirements for settlement services

State Securities Laws: Regulations pertaining to investment properties and securities, including registration requirements for certain types of real estate transactions

Statute of Frauds: Legal requirement that real estate contracts must be in writing, along with specific requirements for valid contracts involving real estate

Tax Laws: IRS regulations regarding finder's fee reporting, 1099 requirements, and tax implications for all parties involved in the transaction

Fair Housing Act: Federal law ensuring compliance with anti-discrimination requirements and equal opportunity in real estate transactions

State Contract Laws: Basic contract formation requirements, consideration requirements, and enforceability provisions at the state level

State Consumer Protection Laws: Regulations governing disclosure requirements and unfair practices in real estate transactions at the state level

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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