Full question:
I have asked two local lawyers, but have no response. I would like to find money for people and get 6% for my trouble. What is the best way to get the money?
- Category: Contracts
- Subcategory: Finder's Fee
- Date:
- State: Pennsylvania
Answer:
A finder's fee is a payment made to someone who helps connect two parties in a transaction. This fee can be applied in various contexts. For instance, employers might pay a finder's fee to recruitment agencies when they hire a referred candidate. Similarly, in corporate transactions like mergers or acquisitions, a finder may receive a fee for identifying a potential company for the deal. Typically, the seller pays these fees, although sometimes the buyer may cover them.
In real estate, finder's fees can be given for locating properties, securing mortgage financing, or referring buyers and sellers. However, if the finder engages in negotiating sale terms, they may need to be a licensed broker, depending on state laws. Some states allow exemptions for certain individuals, enabling them to receive compensation without needing a license. For example, a property management firm might pay a small finder's fee to a tenant for referring a new tenant, but they cannot advertise for new tenants.
Regulations on finder's fees can vary significantly by state, especially for real estate transactions. Certain professions, like real estate and investment brokers, are required to hold licenses. Assisting in financing a transaction may also require licensure. To ensure compliance, it's advisable to consult your local professional licensing board.
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.