Hi All,

Does anyone have a finders fee agreement template which i could use.
Its basically to provide a watertight agreement between the finder and the buyer to allow the fees to be paid .
Is it better to getthe finders fee upfront or wait until completion

hi Reheela, heres one i used a while ago, I was paid on completion, but I know the investor well so had no problem.
To be honest I don't know how well this one or any agreement would stand up in court so maybe better to build a good relationship with the investor if you're taking a FF on completion??

Attached Files

Finders Fee Agreement.doc (25.0 KB, 28 views)

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Hi Raheela

Here is another finders fee that I have used and also a non circumvent agreement both of which are from this forum.

As far when the fee is payable, that is down to negotiation, although most buyers would want that on completion. You could ask for some up front or just wait for completion, which is what I do.

The other thing to think about, is having a back up buyer in place just in case your buyer doesnt complete. You can tell them they are 2nd in line but if they dont get the chance to buy it, then you will give them the first opportunity on the next deal.

Good luck

Attached Files

	Finders fee agreement.doc (58.5 KB, 34 views)
	non circumvent agreement.doc (34.5 KB, 34 views)

__________________
MARK BARRETT 07970 079700

Below RICS valuation properties bought and sold in Bolton - finders fee paid

Whatever the mind can conceive and believe, the mind can achieve

Hi

I'm just looking at packaging some deals but worried that the odd investor will go behind my back. I don't want to think like that, but I know it happens a fair bit and I wouldn't want to lose out after having done so much work to get the deal in the first place.

So, once the deal is secured with the vendor on an option (+ poss RX1) and you've found an investor and a back up investor for the sale, would you recommend they sign the finders fee agreement or the non compete agreement or both or something more bullet proof?

And would you get a small deposit / res fee up front that is non refundable IF they back out of the deal. This at least shows commitment, no?

Thanks very much if you can help

Cheers

Matt.

Hi Matt

I personally would get a buyer to sign both agreements, the finders fee and the non circumvent agreement, which lasts 3 years, although you can change that.

As far as an upfront fee, I personally dont charge one but set the timescales that completion must happen by. I think a few do charge upfront fees but that is for you to decide. If you do then you need to have a policy of if and under what circumstances it is refunded for transparency.

Good luck

__________________
MARK BARRETT 07970 079700

Below RICS valuation properties bought and sold in Bolton - finders fee paid

Whatever the mind can conceive and believe, the mind can achieve

Great.

Thanks very much Mark.

PS. I'm just down the road from you. My area is South Manchester / Cheshire.

Might need some advice on setting up a small packaging company. Will you PM you re: possible coaching.

Thanks again.

Hello everyone!

Could someone please advise me. I need to know how I can set up a finders fee with potential buyers. I will have deals that are fully negotiated in the West Yorkshire area. I understand I need to tie up the deal with an agreement with the seller so that a potential buyer can not negotiate his own deal with the seller and cut me out of the deal. Now I understand, for an option agreement it makes sense to let a solicitor sort that out as there is a lot more at stake. For my finders fee I will only be giving the sellers details and getting paid if the person buys the property. Can someone please tell me how I can structure a document that (a) protects me from the buyer and seller cutting me out from a deal and (b) to ensure I will be paid the agreed finders fee on the purchase of the property. Is there a finders fee form someone has that would be ideal for this situation? Any help would be greatly appreciated!
Please email me direct on jazman20024u@yahoo.co.uk

Jaz,

Finders Fee agreement and Circumvention agreements are what you need.

- FF agreement will make sure you get paid your dues by the buyer

- Circumvention agreement ensures they don't go round your back to the vendor directly to make a deal for themselves.

Both these documents are posted above by Mark - and you will find them useful.