When it comes to real estate transactions, it`s not uncommon for buyers to enlist the help of a property finder to locate and identify potential properties that match their unique criteria. However, it`s important for both the buyer and the property finder to have a clear understanding of the terms of their agreement – specifically, the finders fee.

A property finders fee agreement is a document that outlines the terms and conditions that govern the relationship between the buyer and the property finder. This agreement typically includes details such as the scope of the property finder`s services, the amount of the finders fee, and when the fee will be paid.

The scope of the property finder`s services will typically be defined in the agreement. This can range from a broad search for properties that meet the buyer`s general criteria, to a more focused search for properties with specific features or in a certain location. It`s important for the buyer to be clear about their expectations and for the property finder to be clear about what they are able to provide.

The amount of the finders fee will also be included in the agreement. This fee is typically paid by the buyer and is usually calculated as a percentage of the final purchase price of the property. While the percentage can vary, it`s common for the finders fee to range from 1% to 3% of the purchase price. It`s important for both parties to agree on the fee upfront to avoid any misunderstandings or disputes down the line.

In addition to the amount of the finders fee, the agreement will also specify when the fee will be paid. Some agreements stipulate that the fee is due upon the identification of a suitable property, while others may require payment upon completion of the transaction. Regardless of the timing, it`s important for both parties to agree on the payment terms upfront.

It`s worth noting that property finders are not licensed real estate agents and are therefore not subject to the same regulations and oversight. As such, it`s important for buyers to do their due diligence when selecting a property finder. This can include checking references, reviewing their track record, and ensuring that they have a clear understanding of the local market.

In conclusion, a property finders fee agreement is an important document that helps to ensure that both parties have a clear understanding of the terms and conditions of their relationship. By outlining the scope of the property finder`s services, the amount of the finders fee, and the payment terms, buyers can ensure that they are getting the most out of their property finder`s services while property finders can feel confident that they will be fairly compensated for their efforts.