Finder’s Fee Agreement

A Finder’s Fee Agreement is used when an individual seeks out a business relationship on behalf of another. It identifies the parties and the specific services the finder will perform on either an exclusive or non-exclusive basis.

If you are the one sending the referral or the finder’s fee, fill up the referring broker section. And if you’re the one receiving the referral, you’re the recipient broker.

Complete all of the information. Fill in the principal’s information. (client’s information). Fill out the appropriate information in the agreement section.

The % of total gross compensation earned by recipient broker or payable upon recordation of deed and other evidence of transfer, and if within how many months or years from the date of the agreement.

Then identify if it’s valid

  • for a buy,
  • for a sell, 
  • for lease, 
  • or something else. 

Get the signature of the brokers, this has to go to the jury so they can get the broker whether who is the referring side or the recipient side. 

Have the agreement signed before you send the referral information. It would be very out of culture and unethical for an agent to receive the referral and then not pay. However, it is a contract business if this isn’t done beforehand that could leave the agreement open for some challenges, the same thing the other way.

Sign as quickly as possible and then get that back to them if you are the receiving agent for a referral from another market center.

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