Massachusetts Finder’s Fee Agreement Regarding Real Property Sales

• Category: Real Estate - Contracts
• State: Multi-State
• Control #: US-0154BG
• Format: Word; Rich Text

Description

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. A Massachusetts Finder's Fee Agreement Regarding Real Property Sales is a legally binding contract that outlines the terms and conditions between a finder (also known as a broker) and a property owner or buyer. This agreement sets out the finder's compensation for successfully locating a suitable real property and facilitating its sale. In Massachusetts, there are primarily two types of Finder's Fee Agreements regarding real property sales: 1. Massachusetts Finder's Fee Agreement for Property Purchase: This agreement governs the compensation arrangement between a finder and a buyer. When a finder assists a buyer in identifying a suitable property, negotiating terms, and completing the purchase, they are entitled to a finder's fee as stated in the agreement. The fee is usually a percentage of the purchase price or a fixed amount agreed upon between the parties. 2. Massachusetts Finder's Fee Agreement for Property Sale: This agreement is used when a finder helps a property owner in selling their real estate. It outlines the responsibilities of the finder in marketing the property, finding potential buyers, and facilitating the sale. The finder's fee in this case is typically a percentage of the final sale price or a predetermined lump sum agreed upon in the agreement. Both types of agreements have similar key components, including: a. Identification of Parties: The agreement identifies the finder (broker) and the property owner or buyer involved in the transaction. b. Description of Property: A detailed description of the real property being bought or sold is included, such as the address, legal description, and any other pertinent details to narrow down the scope. c. Finder's Compensation: The agreement specifies the finder's fee structure, whether it's a percentage of the transaction value or a fixed amount. The exact compensation amount or percentage is determined through negotiation and stated in the agreement. d. Scope of Services: The agreement clearly outlines the finder's responsibilities, which may include property research, market analysis, arranging property visits, negotiating purchase or sale terms, preparing relevant documents, and coordinating the closing process. e. Term and Termination: The agreement establishes the duration of the agreement, typically expressed as a fixed period or until the completion of the transaction. It also outlines the conditions under which the agreement can be terminated, such as breaches of contract or failure to perform duties. f. Confidentiality and Non-Disclosure: To protect sensitive information, the agreement may contain provisions ensuring the confidentiality of any information shared between the parties during the course of the transaction. g. Governing Law: As the agreement pertains to Massachusetts, it should specify that it will be governed by the laws of the state. By utilizing a Massachusetts Finder's Fee Agreement Regarding Real Property Sales, both property owners and buyers can establish clear expectations and protect their interests during the property transaction process.

A Massachusetts Finder's Fee Agreement Regarding Real Property Sales is a legally binding contract that outlines the terms and conditions between a finder (also known as a broker) and a property owner or buyer. This agreement sets out the finder's compensation for successfully locating a suitable real property and facilitating its sale. In Massachusetts, there are primarily two types of Finder's Fee Agreements regarding real property sales: 1. Massachusetts Finder's Fee Agreement for Property Purchase: This agreement governs the compensation arrangement between a finder and a buyer. When a finder assists a buyer in identifying a suitable property, negotiating terms, and completing the purchase, they are entitled to a finder's fee as stated in the agreement. The fee is usually a percentage of the purchase price or a fixed amount agreed upon between the parties. 2. Massachusetts Finder's Fee Agreement for Property Sale: This agreement is used when a finder helps a property owner in selling their real estate. It outlines the responsibilities of the finder in marketing the property, finding potential buyers, and facilitating the sale. The finder's fee in this case is typically a percentage of the final sale price or a predetermined lump sum agreed upon in the agreement. Both types of agreements have similar key components, including: a. Identification of Parties: The agreement identifies the finder (broker) and the property owner or buyer involved in the transaction. b. Description of Property: A detailed description of the real property being bought or sold is included, such as the address, legal description, and any other pertinent details to narrow down the scope. c. Finder's Compensation: The agreement specifies the finder's fee structure, whether it's a percentage of the transaction value or a fixed amount. The exact compensation amount or percentage is determined through negotiation and stated in the agreement. d. Scope of Services: The agreement clearly outlines the finder's responsibilities, which may include property research, market analysis, arranging property visits, negotiating purchase or sale terms, preparing relevant documents, and coordinating the closing process. e. Term and Termination: The agreement establishes the duration of the agreement, typically expressed as a fixed period or until the completion of the transaction. It also outlines the conditions under which the agreement can be terminated, such as breaches of contract or failure to perform duties. f. Confidentiality and Non-Disclosure: To protect sensitive information, the agreement may contain provisions ensuring the confidentiality of any information shared between the parties during the course of the transaction. g. Governing Law: As the agreement pertains to Massachusetts, it should specify that it will be governed by the laws of the state. By utilizing a Massachusetts Finder's Fee Agreement Regarding Real Property Sales, both property owners and buyers can establish clear expectations and protect their interests during the property transaction process.