North Dakota 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 Finder's Fee Agreement Regarding Real Property Sales in North Dakota is a legal contract that outlines the terms and conditions under which a finder (also known as a broker) can receive a fee for facilitating a real estate transaction. This agreement serves to protect the interests of all parties involved and ensures that the finder is compensated appropriately for their services. The North Dakota Finder's Fee Agreement Regarding Real Property Sales typically includes several key elements: 1. Parties involved: The agreement clearly identifies the finder/broker and the property owner (or seller). It may also mention any other relevant parties, such as potential buyers or additional brokers involved in the transaction. 2. Property details: The agreement provides a detailed description of the real property, including its address, legal description, and any relevant details that will aid in the transaction process. 3. Finder's fee structure: The agreement outlines the compensation structure for the finder's services. This can include either a flat fee or a percentage of the total sale price. The agreement may specify when and how the fee will be paid, such as upon the successful closing of the transaction or in installments. 4. Exclusivity and scope: The agreement states whether the finder has exclusive rights to represent the property owner in finding a buyer or if multiple brokers can work on the sale simultaneously. It may also mention any geographical limitations or target markets for the finder's efforts. 5. Duties and obligations: The agreement details the finder's responsibilities, such as marketing the property, finding qualified buyers, arranging property showings, and negotiating offers. It also highlights any specific obligations or reporting requirements the finder must comply with to earn the fee. 6. Term and termination: The agreement specifies the duration of the agreement and the circumstances under which it can be terminated, such as by mutual agreement, breach of contract, or completion of the sale. Other types of Finder's Fee Agreements Regarding Real Property Sales in North Dakota may include variations based on the specifics of the transaction or the parties involved. For instance, there may be specialized agreements for commercial versus residential properties, rental or lease agreements, or agreements that involve a cooperative or condominium complex. It is crucial for all parties to thoroughly review and understand the terms and conditions within the Finder's Fee Agreement Regarding Real Property Sales before signing. Consulting with a qualified attorney or real estate professional is highly recommended ensuring compliance with North Dakota's real estate laws and to protect the interests of all parties involved in the transaction.