A real estate finder’s fee agreement is a legally binding document that outlines the terms and conditions under which a real estate finder, often referred to as a “finder,” will receive a fee for introducing a potential buyer or seller to a property listing. This agreement ensures that all parties involved understand their rights and obligations, preventing misunderstandings and disputes.
Key Components of a Real Estate Finder’s Fee Agreement
Free Finder’s Fee Agreement: Make & Download – Rocket Lawyer
1. Parties Involved:
Clearly identify the parties involved in the agreement, including the name, address, and contact information of the finder and the real estate agent or brokerage.
Specify the role of each party in the transaction.
2. Scope of Services:
Define the specific services that the finder will provide. These may include identifying potential buyers or sellers, providing information about properties, and facilitating negotiations.
Outline the scope of the finder’s responsibilities and the boundaries of their involvement.
3. Finder’s Fee:
Specify the amount of the finder’s fee, which can be a flat fee, a percentage of the purchase price, or a combination of both.
Indicate when the fee will be paid, such as upon closing of the transaction or upon receipt of the earnest money deposit.
Clearly state whether the fee is payable regardless of whether the transaction closes or if there are any conditions that must be met.
4. Term of Agreement:
Establish the duration of the agreement, specifying the start and end dates.
Consider including a provision for automatic renewal under certain conditions.
5. Confidentiality:
Address the confidentiality obligations of both parties, requiring them to keep all information obtained during the transaction confidential.
Specify any exceptions to confidentiality, such as information that is publicly available or required to be disclosed by law.
6. Indemnification:
Include a clause outlining the indemnification obligations of the parties. This clause typically requires one party to indemnify the other for any losses, damages, or expenses arising from the agreement.
7. Dispute Resolution:
Specify the method for resolving disputes that may arise between the parties. This could include mediation, arbitration, or litigation.
8. Entire Agreement:
State that the agreement constitutes the entire understanding between the parties and supersedes any prior or contemporaneous communications or agreements.
9. Governing Law:
Indicate the governing law that will apply to the agreement. This is typically the law of the jurisdiction where the agreement is executed.
10. Signatures:
Ensure that both parties sign the agreement to make it legally binding.
Design Elements for a Professional Template
Layout: Use a clean and uncluttered layout that is easy to read and navigate.
Font: Choose a professional and legible font that is easy on the eyes.
Formatting: Use consistent formatting throughout the document, including headings, subheadings, and bullet points.
Language: Use clear and concise language that is easy to understand. Avoid legal jargon that may confuse the parties.
By carefully considering these elements and incorporating them into your real estate finder’s fee agreement template, you can create a professional and legally sound document that protects the interests of all parties involved.
