Full question:
SOMEONE WANTS ME TO FIND BUYERS FOR WASHING MACHINES. IT SEEMS TO BE A LUCRATIVE VENTURE AS HE HAS A WAREHOUSE FULL OF WASHERS. MY ONLY FUNCTION WOULD BE TO LOCATE CLIENTS AND GIVE THEM HIS PHONE NUMBER. IS IT LEGAL TO CHARGE FINDERS FEES FOR SUCH SERVICES IN THE STATE OF VA? WHAT SECTION OF THE VA STATE CODE ADDRESSES THIS ISSUE? ALSO I WOULD WANT TO OFFER THE CUSTOMER A $5.00 GIFT CARD AFTER THE TRANSACTION IS COMPLETED. THIS WILL LET ME KNOW A SALE HAS TAKEN PLACE. THANKS
- Category: Contracts
- Subcategory: Finder's Fee
- Date:
- State: Virginia
Answer:
Finder's Fee: Law & Legal Definition.
A finder's fee is a fee paid to someone who acts as an intermediary for another party in a transaction. Finder's fees may be offered in a variety of situations. For example, an employer may pay a finder's fee to a recruitment agency upon hiring a new employee referred by that agency. A finder's fee may be paid regardless of whether a transaction is ultimately consumated.
In a real estate context, a finder's fee may be paid for locating property, obtaining mortgage financing. or referring sellers or buyers. A finder's fee is money paid to a person for finding someone interested in selling or buying property. To conduct any negotiations of sale terms, the finder may be required to be a licensed broker or he violates the law. However, state laws, which vary by state, may also provide an exemption for certain individuals, allowing them to be compensated without the necessity of licensure. For example, one state's law allows an exemption for either a property management firm or an owner of an apartment complex to pay a finder’s fee or referral of up to $50 to a current tenant for referring a new tenant. The fee can be in the form of cash, a rental reduction or some other thing of value. The party claiming compensation under this exemption is not allowed to advertise for prospective tenants.
In a corporate context, a company seeking a merger or acquisition may pay a finder's fee to a person who locates a prospective company for the transaction desired. It may be in the form of a performance-based commission, where the finder gets paid upon closing of a sale. Usually the fees are paid by the seller, but in some cases the buyer pays the commission.
Many states regulate finder's fees among real-estate licensees. Few, if any, states regulate finder's fees in regard to personal property (washing machines are a form of personal property). Virginia appears to have no statute regulating finders fees in regard to either personal property or real estate. Online one finds websites offering finders fees for both personal and real property in Virginia.
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.
