finder's fee (percent, attorney, claim, brokers)

[rjrcm]

Originally Posted by Lopez57

so being..a (finder) of anything is illegal or only on realestate,
(example you not a pre-seller,a dealer,a representative or agent,do not sell,do not negotiate.

Often, the finder's fee may simply be a gift from one party to another, as no legal obligation to pay a commission exists. For example, let's examine a real estate transaction. Let's say that a friend is selling a property and you discover a potential buyer. If the transaction goes through, your friend may give you a small percentage of the sale, as a reward for finding the purchaser

That would be receiving a commission as an unlicensed person, which is illegal. Note that it is the payee that is open to legal penalties for being unlicensed, not the payer. In AZ there is a specific law that stipulates unlicensed people may not receive compensation for facilitating real estate transactions.

[Silverfall]

Originally Posted by Lopez57

so being..a (finder) of anything is illegal or only on realestate,
(example you not a pre-seller,a dealer,a representative or agent,do not sell,do not negotiate.

Often, the finder's fee may simply be a gift from one party to another, as no legal obligation to pay a commission exists. For example, let's examine a real estate transaction. Let's say that a friend is selling a property and you discover a potential buyer. If the transaction goes through, your friend may give you a small percentage of the sale, as a reward for finding the purchaser

If you found the purchaser that is real estate activity. Your attempts to split hairs isn't going to fly. It's illegal.

[Lopez57]

thanks for the info..i think you understand what i am talking about.!

[estateharry]

What's the situation in New York (city/state) and Connecticut? Can the finder legally ask the seller for a finder's fee where he found a buyer for the seller/owner of the property without having a real estate broker license?

[Brandon Hoffman]

You can ask for whatever you want. That's not illegal, but paying one is. So the answer is NO! Geez, read the threads.

[middle-aged mom]

Originally Posted by Lopez57

so being..a (finder) of anything is illegal or only on realestate,

It's not legal in real estate.

" Brokering" non real estate transactions is however, legal. Businesses do this all the time.

[FalconheadWest]

Originally Posted by Lopez57

For example, let's examine a real estate transaction. Let's say that a friend is selling a property and you discover a potential buyer. If the transaction goes through, your friend may give you a small percentage of the sale, as a reward for finding the purchaser

That's practicing real estate without a license, as said by several previously. If you receive a fee for this, it's receiving a commission upon the sale. Still illegal anyway you want to "example" it.

On the other hand, if you are a consultant, and you consult with one party about some type of business, and provide a consulting invoice for work preformed, that's another story.

[DMenscha]

Originally Posted by Lopez57

so being..a (finder) of anything is illegal or only on realestate,
(example you not a pre-seller,a dealer,a representative or agent,do not sell,do not negotiate.

Often, the finder's fee may simply be a gift from one party to another, as no legal obligation to pay a commission exists. For example, let's examine a real estate transaction. Let's say that a friend is selling a property and you discover a potential buyer. If the transaction goes through, your friend may give you a small percentage of the sale, as a reward for finding the purchaser

Which would still be illegal, but someone would have to file a complaint, I would imagine, in order for you to be fined.

[Demitasse11]

I find it interesting that many of the people who claim this activity is illegal are real estate agents/brokers...and it makes sense that they, in their role, would protest. But their claims are simply not accurate.

Acting as a finder is NOT illegal, but one should definitely research the laws in one's state so as not to cross the line and perform duties that are exclusive to licensed agents. Make sure you have an attorney (who specializes in real estate, preferably) draft a finders agreement that defines and memorializes your role as a finder and not a broker. Make sure your fee/percentage is spelled out and that it's in exchange for the introduction of buyer and seller and nothing more.

There is plenty of legal precedent allowing for this role. Google the topic and you should find some good information. Bottom line, get informed and enlist the assistance of an attorney to legally establish yourself as finder.

[Brandon Hoffman]

Originally Posted by Demitasse11

I find it interesting that many of the people who claim this activity is illegal are real estate agents/brokers...and it makes sense that they, in their role, would protest. But their claims are simply not accurate.

Acting as a finder is NOT illegal, but one should definitely research the laws in one's state so as not to cross the line and perform duties that are exclusive to licensed agents. Make sure you have an attorney (who specializes in real estate, preferably) draft a finders agreement that defines and memorializes your role as a finder and not a broker. Make sure your fee/percentage is spelled out and that it's in exchange for the introduction of buyer and seller and nothing more.

There is plenty of legal precedent allowing for this role. Google the topic and you should find some good information. Bottom line, get informed and enlist the assistance of an attorney to legally establish yourself as finder.

Perhaps real estate agents are answering because we know about real estate laws? We didn't make them we just know them. It is not legal no matter how you look at it, and an attorney drafting a form isn't going to change that.