A real estate finders fee agreement is a legal document that outlines the terms and conditions under which a real estate finder is entitled to a commission for introducing a buyer or seller to a property. This agreement is crucial for establishing clear expectations and ensuring a fair compensation arrangement between the finder and the party hiring them.
Essential Elements of a Real Estate Finders Fee Agreement Template
1. Parties Involved: Clearly identify the parties involved in the agreement, including the name, address, and contact information of the real estate finder and the party hiring them (e.g., property owner, real estate agent).
2. Scope of Services: Define the specific services that the real estate finder will provide. This may include identifying potential buyers or sellers, negotiating terms, and facilitating the transaction.
3. Finder’s Fee: Specify the amount of the finder’s fee, which can be a fixed percentage of the sale price, a flat fee, or a combination of both.
4. Payment Terms: Outline the payment terms, including when the fee will be due and how it will be paid (e.g., check, wire transfer).
5. Contingency Clause: Consider including a contingency clause that specifies the circumstances under which the finder’s fee will not be paid. This may include situations where the transaction falls through due to no fault of the finder.
6. Exclusivity Clause: If applicable, include an exclusivity clause that states that the finder is the exclusive agent for the property. This means that the party hiring the finder cannot engage with other finders without the finder’s consent.
7. Termination Clause: Specify the conditions under which either party can terminate the agreement. This may include situations where the property is sold or the finder’s services are no longer needed.
8. Governing Law: Indicate the governing law that will apply to the agreement. This is important for resolving any disputes that may arise.
9. Dispute Resolution: Consider including a dispute resolution clause that specifies how any disagreements will be resolved. This may include mediation, arbitration, or litigation.
10. Signatures: Ensure that both parties sign the agreement to make it legally binding.
Design Considerations for a Professional Real Estate Finders Fee Agreement Template
Clarity and Conciseness: Use clear and concise language that is easy to understand. Avoid legal jargon that may confuse the parties involved.
Additional Tips for Creating a Professional Real Estate Finders Fee Agreement Template
Consult with an Attorney: It is always advisable to consult with an attorney to ensure that the agreement is legally sound and protects your interests.
By following these guidelines, you can create a professional real estate finders fee agreement template that effectively outlines the terms of your arrangement and protects your rights.
