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Finder: Key Legal Insights on Rights and Responsibilities
Definition & Meaning
A finder is a person who connects two parties for a business opportunity, such as facilitating a merger between companies, linking a borrower with a financial institution, or bringing together a seller and a buyer in real estate transactions. Importantly, a finder does not engage in negotiations; their role is solely to introduce the parties involved.
Additionally, the term "finder" also refers to someone who legally comes into possession of lost personal property. This person has specific rights and responsibilities regarding the found item, including the duty to take reasonable care of it. If the original owner does not reclaim the property, it may belong to the finder.
Table of content
Legal Use & context
The term "finder" is used in various legal contexts, particularly in business law and property law. In business, finders play a crucial role in connecting potential partners or investors without being involved in the contractual negotiations. In property law, finders have rights concerning lost property, which can involve legal claims to ownership under certain conditions.
Individuals can manage situations involving finders through legal forms and templates provided by services like US Legal Forms, which can assist in documenting agreements or claims related to found property.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A finder introduces two tech companies looking to merge. They connect the companies but do not take part in the discussions or contract drafting.
Example 2: A person finds a lost dog in their neighborhood. They take care of the dog and post advertisements to locate the owner. If the owner does not come forward, they may claim ownership of the dog after a certain period.
State-by-state differences
Examples of state differences (not exhaustive):
State
Finder's Rights
California
Finders may claim ownership after a specified time if the owner does not reclaim the property.
New York
Finders must report lost property to authorities and may have a claim after a waiting period.
Texas
Finders have rights to keep found property unless the owner claims it within a certain timeframe.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Key Differences
Finder
Person who connects parties for business or claims rights to found property.
Does not negotiate contracts; has rights over found property.
Broker
Intermediary who facilitates transactions and often negotiates terms.
Involves negotiation and contract participation.
Owner
Individual or entity with legal rights to property.
Holds legal title; finders may claim ownership only under specific conditions.
Common misunderstandings
What to do if this term applies to you
If you find yourself in a situation involving a finder, consider the following steps:
If you are a finder, document your interactions and any agreements made with the parties.
If you have found lost property, take reasonable care of it and attempt to locate the owner.
Explore US Legal Forms for templates that can help you create necessary documentation.
If the situation is complex or involves significant assets, consult a legal professional for guidance.
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