Full question:
Recently, I received a packet containing information about FINDING privately owned promissory notes on real-estate, then asking the owner about selling the notes, and then presenting them to a company to buy. Question: Do I have to be a broker to approach individuals who own these notes, or to be the middle man in connecting the buyer with the seller? I live in Florida.
- Category: Contracts
- Subcategory: Finder's Fee
- Date:
- State: Florida
Answer:
A finder's fee is a payment made to someone who helps connect parties in a transaction. In real estate, this can involve locating property or referring buyers and sellers. If you plan to negotiate sale terms, you may need to be a licensed broker, as doing so without a license could violate the law.
However, some state laws, including Florida's, may allow certain exemptions. For example, Florida law (Fla. Stat. § 475.011) specifies that individuals can be compensated for finding buyers or sellers without needing a license in specific situations. This includes scenarios where the fee is small or where the person is simply introducing parties without negotiating terms.
In Florida, the definition of a broker includes anyone who negotiates sales or exchanges of real property for compensation. Therefore, if you are acting as an intermediary and negotiating terms, you likely need a broker's license. To understand your specific situation better, consider contacting your local professional licensing board for guidance.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.