Are Finder Agreements enforceable electronically?

Yes. Electronic signatures are legally enforceable under the ESIGN Act (15 U.S.C. ch. 96, 2000) and UETA where adopted, provided intent, consent, attribution, and record retention requirements are met.

Do you need to issue Form 1099-NEC for finder payments?

Payers should issue Form 1099-NEC for nonemployee compensation meeting IRS thresholds; the Form 1099-NEC filing deadline to recipients and the IRS is Jan 31.

Does a finder need a broker or securities license?

Possibly. Introductions involving securities or regulated products may trigger broker-dealer or registration requirements; consult securities counsel or state regulators for specific license rules.

What if two finders claim the same commission?

Resolution depends on contract priority, exclusivity clauses, and documentary evidence of introduction; clear definitions and timestamped communications reduce competing claims.

When is notarization required for Finder Agreements?

Notarization is generally not required for basic Finder Agreements, but specific transactions (for example, real estate deeds) may require notarial acts; check applicable state requirements.

How do you revoke or terminate a Finder Agreement?

Use the contract's termination clause. Absent specific terms, follow agreed notice periods; revocation does not usually affect fees earned for prior valid introductions.

Finder Agreement

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FINDER AGREEMENT

This Finder Agreement ("Agreement") is made effective as of by and between:

Parties

Finder (Individual or Entity) Finder Address Client (Company or Individual) Client Address

WHEREAS

WHEREAS, Finder maintains relationships and contacts with potential investors, buyers, sellers, licensors or purchasers, and regularly identifies business opportunities for third parties; and

WHEREAS, Client desires to retain Finder on a non-exclusive basis to introduce Client to third parties that may result in a Transaction as defined below, and Finder is willing to provide such introduction services pursuant to the terms and conditions of this Agreement.

SCOPE OF WORK

Finder shall use commercially reasonable efforts to identify and introduce potential third parties to Client where such introductions may lead to an investment, purchase, sale, license, joint venture, financing or other business transaction ("Transaction"). The specific activities to be performed by Finder are described below.

Detailed Scope of Introductions and Services

INTRODUCTIONS; QUALIFYING TRANSACTION

An "Introduction" occurs when Finder provides Client with the name and contact information of a potential third party which Client has not previously engaged in meaningful negotiations with, and which leads to a bona fide Transaction within the Term of this Agreement or within the post-termination protection period set forth herein. For the avoidance of doubt, a Transaction shall be deemed "bona fide" only if it results in a legally binding agreement between Client and the introduced third party or if substantial discussions and negotiations are documented in writing and proceed in good faith toward a documented agreement.

PAYMENT TERMS

In consideration for the introductions and services provided by Finder, Client shall pay Finder the following fee(s). Finder and Client agree that the fee will become earned and payable upon the earlier of: (i) execution of a binding Transaction between Client and an Introduced Party; or (ii) receipt by Client of consideration from an Introduced Party in respect of the Transaction.

Fee Type (select applicable option)

Fixed Fee — Amount: Percentage — % of Transaction Value

Payment Schedule and Method Late Payment

Any undisputed amount not paid within days after the due date shall accrue interest at % per month (or the maximum permitted by law, if less). Client shall also reimburse Finder for reasonable costs of collection, including attorneys' fees.

TERM AND TERMINATION

This Agreement shall commence on and shall continue until unless earlier terminated as provided herein (the "Term").

Either party may terminate this Agreement for convenience upon providing days' prior written notice to the other party. Termination shall not relieve Client of its obligation to pay Finder any fees earned prior to the effective date of termination. In addition, for any Introduction made during the Term, Finder shall be entitled to its fee for Transactions consummated within days after termination if the Transaction arises directly from an Introduction.

CONFIDENTIALITY

Each party agrees to hold in strict confidence and not to use or disclose any Confidential Information of the other party except as necessary to perform under this Agreement. "Confidential Information" includes non-public business, financial, technical and customer information disclosed directly or indirectly. Confidentiality obligations shall survive termination for a period of years. Exceptions apply to information that is or becomes publicly available through no fault of the receiving party, is already known by the receiving party, or is required to be disclosed by law or regulation.

NON-CIRCUMVENTION

Client agrees not to circumvent Finder by directly negotiating or consummating any Transaction with an Introduced Party for the purpose of avoiding payment of Finder's fees. Any attempt to do so shall entitle Finder to recover its full fee plus damages and costs, including reasonable attorneys' fees.

REPRESENTATIONS; INDEMNITY

Each party represents that it has the full right, power and authority to enter into this Agreement and to perform its obligations hereunder. Finder makes no representations or warranties regarding the financial condition or suitability of any Introduced Party. Client shall indemnify, defend and hold Finder harmless from and against any claims, liabilities, losses or expenses arising out of Client's use of information provided by Finder or Client's negligence or breach of this Agreement.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the state of , without regard to its conflict of laws principles. Any dispute arising under or in connection with this Agreement shall be subject to the exclusive jurisdiction of the state and federal courts located within that state.

ENTIRE AGREEMENT

This Agreement, together with any written attachments or schedules executed by the parties, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral. No amendment or modification to this Agreement shall be effective unless in writing and signed by both parties.

NOTICES

Any notice required or permitted hereunder shall be in writing and delivered by hand, nationally recognized overnight courier, or certified mail (return receipt requested) to the addresses set forth above or to such other address as a party may designate by notice hereunder. Notices shall be effective upon receipt.

MISCELLANEOUS

If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions will remain in full force and effect. The parties are independent contractors and nothing in this Agreement shall be construed to create a partnership, joint venture, agency or employment relationship.

Finder Printed Name:

By:

Date:

Client Printed Name:

By:

Date:

What a Finder Agreement Is and when parties use it

A Finder Agreement is a written contract that documents the terms under which one party (the finder) introduces a potential client, investor, buyer, or other business opportunity to another party in exchange for a fee or commission. It defines the scope of introductions, the commission calculation and payment schedule, exclusivity or non-exclusivity, confidentiality obligations, and the period during which introductions qualify for payment. Finder Agreements clarify expectations, allocate risk, and reduce disputes by recording who made the introduction, what constitutes a qualifying lead, and how and when the finder will be paid.

Why a clear Finder Agreement matters

A written Finder Agreement reduces ambiguity about commission entitlement, timing, and documentation; it helps preserve tax and compliance records and supports enforceability in contract disputes when properly executed and retained.

Who commonly creates and signs Finder Agreements

Use a Finder Agreement when a party will rely on written evidence of an introduction and a defined payment obligation.

Real estate brokers and private deal brokers who introduce buyers, sellers, or investors to match transactions
Corporate business development or BD consultants securing introductions to prospective partners or customers
Independent consultants, recruiter or placement agents paid for referring candidates or contract opportunities

Core clauses to include in a professional Finder Agreement

A well-drafted Finder Agreement contains clear definitions, measurable triggers for payment, recordkeeping provisions, and dispute resolution language to make enforcement practicable.

Parties and Definitions

Identify each party by legal name and define 'Introduced Party', 'Finder', 'Transaction', and other key terms to avoid later ambiguity and to tie payments to specific introductions.

Scope of Introduction

Describe precisely what activity qualifies as an introduction, including dates, communications, and whether warm introductions, leads, or executed transactions trigger payment.

Commission Structure

State the fee formula, percentage or fixed amount, gross vs. net basis, and whether fees apply to referrals, closed deals, or executed contracts.

Payment Terms

Specify timing (for example, within 30 days of closing), invoicing procedures, documentation required for payment, and any withholding or tax obligations.

Exclusivity and Term

Set the agreement term and any exclusivity period during which the finder has sole entitlement to fees for specified leads or markets.

Confidentiality & Remedies

Include confidentiality obligations, non-solicitation where appropriate, and remedies for breach such as injunctive relief, fees, or dispute-resolution mechanics.

Step-by-step: completing a Finder Agreement

Follow a fixed order to reduce errors and ensure all parties receive the same document for signature.

01

Gather details: Collect legal names, contact info, and transaction description.
02

Define terms: Agree on fee, scope, and exclusivity in writing.
03

Insert dates: Add effective date and term expiration.
04

Sign and retain: Execute signatures and save the fully signed copy.

How to configure an online Finder Agreement workflow

Set up a predictable template and signer flow so each introduction follows the same approval and signing path.

Workflow Field and Configuration Details	Mapping of online fields to contract clauses for consistent execution.
Template Selection from Shared Library	Choose a reusable Finder Agreement template and save a version for your organization.
Conditional Field Rules and Logic	Use conditional fields for exclusivity, payment tiers, or territory-based clauses.
Signer Authentication Method and Strength	Require email verification, SMS code, or higher-assurance methods for sensitive agreements.
Notification Settings and Reminder Schedule	Set automatic reminders for pending signatures and post-signation distribution.

Where to send the completed Finder Agreement

Route the executed agreement to all parties and any third parties who must rely on or record the fee arrangement.

To the Counterparty: Send the signed copy to the recipient who owes the commission.
To the Finder: Provide a fully executed copy to the finder for their records.
To Legal or Finance: Deliver to counsel or accounting for tax and compliance handling.
To Escrow or Agent: If commission tied to closing, give a copy to escrow or closing agent.

Digital signing and technical considerations

Use an e-signature platform that supports authentication, audit trails, and common integrations to streamline execution.

Integrations: Salesforce, NetSuite, Google Workspace
Formats Supported: PDF, DOCX, HTML
Authentication Options: Email, SMS, KBA, SSO

Common timing and deadline items to include

Document explicit timing requirements so payment, notice, and reporting obligations are clear to all parties.

Payment Due After Invoice Issuance:

Specify payment term, commonly 30 days from invoice date.

Notice of Qualified Introduction:

Require finder to give notice within a set period, for example 15–30 days.

Commission Claim Window:

Define the period after introduction during which commissions apply, often 6–12 months.

Tax Reporting Deadline:

Issuing Form 1099-NEC to payee and IRS is due Jan 31 each year.

Contract Renewal or Termination Date:

State when the agreement expires or automatically renews.

Frequent preparation errors to avoid

Vague definitions that fail to identify what qualifies as a reportable or fee-earning introduction, creating disputes over entitlement.
Omitting clear payment timing and invoicing procedures, which delays payment and complicates tax reporting obligations.
Failing to confirm whether exclusivity applies, producing competing claims from multiple finders over the same lead.
Neglecting to capture signer identity and consent, increasing the risk that a court will question enforceability.

Risks and legal consequences of an incorrect or incomplete Finder Agreement

Unenforceable Fee Claim: Court may deny fee without written proof of introduction

Double Commission Risk: Two finders may claim entitlement absent exclusivity

Tax Reporting Penalty: Failure to file correct 1099s can trigger IRC §6721 penalties

Breach Damages: Breach can expose party to compensatory damages

Regulatory Risk: Industry licensing rules can limit fee recoverability

Recordkeeping Failure: Poor records complicate audits and litigation

Comparison: signNow and common eSignature vendors for Finder Agreement execution

Vendor selection affects cost, HIPAA support, bulk sending, and envelope limits; signNow is listed first for direct comparison.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial, no credit card required	Varies by plan and vendor	Varies by plan and vendor	Varies by plan and vendor	Varies by plan and vendor
Bulk Send	Yes (available on higher tiers)	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Essential data fields to include in a Finder Agreement

Finder Name: Full legal name of the referring party

Recipient Name: Full legal name of the party paying commission

Introduced Party: Name/identifier of the third party introduced

Commission Rate: Agreed percentage or fixed amount

Payment Terms: Due date and invoicing instructions

Effective Date: Contract start date in MM/DD/YYYY

Real-world examples of how Finder Agreements are used

Short case examples illustrate typical uses of Finder Agreements across property and corporate dealmaking.

Martin Properties

A local property firm used a Finder Agreement to document broker introductions and payment terms.

The arrangement covered investor introductions for rental conversions.
"I can process and execute all of these documents online with 100% compliance and built-in security," showing the value of clear, signed agreements for timely closings and recordkeeping.

Optica Ventures

A venture firm recorded consultant referrals with a written Finder Agreement to avoid competing claims.

The agreement clarified qualifying introductions and fee percentages.
"The interface is simple and easy-to-use for our team; more importantly, it is just as easy for our customers," illustrating how consistent templates reduce disputes and speed payments.

Frequently asked questions about Finder Agreements

Answers to common legal, tax, and execution questions about Finder Agreements and electronic signing.

Need help? Contact support

Are Finder Agreements enforceable electronically?
Yes. Electronic signatures are legally enforceable under the ESIGN Act (15 U.S.C. ch. 96, 2000) and UETA where adopted, provided intent, consent, attribution, and record retention requirements are met.
Do you need to issue Form 1099-NEC for finder payments?
Payers should issue Form 1099-NEC for nonemployee compensation meeting IRS thresholds; the Form 1099-NEC filing deadline to recipients and the IRS is Jan 31.
Does a finder need a broker or securities license?
Possibly. Introductions involving securities or regulated products may trigger broker-dealer or registration requirements; consult securities counsel or state regulators for specific license rules.
What if two finders claim the same commission?
Resolution depends on contract priority, exclusivity clauses, and documentary evidence of introduction; clear definitions and timestamped communications reduce competing claims.
When is notarization required for Finder Agreements?
Notarization is generally not required for basic Finder Agreements, but specific transactions (for example, real estate deeds) may require notarial acts; check applicable state requirements.
How do you revoke or terminate a Finder Agreement?
Use the contract's termination clause. Absent specific terms, follow agreed notice periods; revocation does not usually affect fees earned for prior valid introductions.

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