South Carolina 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 South Carolina Finder's Fee Agreement Regarding Real Property Sales is a legally binding document that outlines the terms and conditions between a finder (also known as a broker or intermediary) and a party interested in purchasing real property in South Carolina. This agreement establishes the compensation structure for the finder's services of locating a suitable property for the buyer. In South Carolina, there are two common types of Finder's Fee Agreements: 1. Residential Property Finder's Fee Agreement: This type of agreement is specific to residential real estate transactions. It applies when the finder assists in identifying and connecting the buyer with potential properties that meet their criteria, such as single-family homes, condominiums, or townhouses. 2. Commercial Property Finder's Fee Agreement: This agreement is associated with commercial real estate transactions. It applies when the finder aids in identifying and connecting the buyer with potential commercial properties like office buildings, retail spaces, or industrial warehouses. Key terms and sections typically included in a South Carolina Finder's Fee Agreement Regarding Real Property Sales may include: 1. Parties Involved: Clearly state the names and contact information of both the finder (broker) and the buyer (client) entering into the agreement. 2. Property Specifications: Provide detailed descriptions of the specific property type, attributes, and features the buyer is seeking, such as location, size, amenities, and potential uses. 3. Exclusive or Non-Exclusive Agreement: Determine whether the finder has the exclusive right to represent the buyer or if they can collaborate with other brokers during the property search process. 4. Finder's Fee Amount and Payment Schedule: Specify the compensation arrangement, including the finder's fee percentage or flat fee agreed upon, and outline the payment schedule (e.g., upon successful closing or in installments). 5. Termination Clause: Define the circumstances under which either party can terminate the agreement, such as a failure to fulfill obligations, breach of contract, or if the buyer finds a property independently. 6. Confidentiality and Non-Circumvention: Emphasize the importance of maintaining confidentiality regarding any property information shared and establish that the buyer agrees not to bypass the finder and negotiate directly with property owners or their representatives. 7. Governing Law: State that the agreement will be governed by South Carolina law and any disputes will be resolved in accordance with the state's legal procedures. It is crucial for both parties involved in a South Carolina Finder's Fee Agreement Regarding Real Property Sales to carefully review and understand all terms before signing. It is recommended to consult with a qualified real estate attorney to ensure legal compliance and protection of their respective rights and interests.