Is a written agreement required?

No statutory requirement exists in most jurisdictions, but a written agreement is strongly recommended to document intent, reduce disputes, and evidence payment terms for tax reporting.

Can a finder be paid without a broker license?

State rules vary. Some states prohibit unlicensed activity if the finder performs brokerage tasks; verify state licensing requirements or include limited scope language to mitigate risk.

Is an eSignature valid for this agreement?

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

Do I need to notarize the agreement?

Notary requirements depend on state and intended use. Notarization adds evidentiary weight but is usually optional for private contracts unless state law or lender requirements specify otherwise.

How do I report payments for taxes?

Report paid finders or independent contractors on the appropriate information return (for example, Form 1099-NEC) and collect a correct TIN using Form W-9 as applicable.

What if multiple finders claim the same deal?

Include clear priority and evidence rules in the agreement (first introduction with dated proof or exclusive period) and describe dispute resolution to minimize contested claims.

Electronic Signature
Templates
Real estate
Real Estate Finders Fee Agreement

Real Estate Finders Fee Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

REAL ESTATE FINDERS FEE AGREEMENT

This Finders Fee Agreement (the "Agreement") is entered into as of by and between:

Parties

Client (Principal) Name Client Address Finder Name Finder Address

Recitals

Client desires to engage Finder to identify prospective parties or opportunities for the purchase, option, lease or other acquisition of real property described below. Finder has experience and contacts to assist Client in identifying such opportunities. Finder is not being retained as a broker for the transaction unless otherwise indicated in this Agreement.

Property Identification

Property Street Address Parcel / APN Number Legal Description

Engagement and Scope

Client hereby engages Finder to use commercially reasonable efforts to identify and introduce potential purchasers, sellers, lessors or lessees (each, a "Prospective Party") for the Property. Finder shall not execute contracts on behalf of Client. Finder's duties are limited to introductions and facilitation as set forth in this Agreement.

Finders Fee

Client agrees to pay Finder a fee (the "Fee") if, within the Term of this Agreement, Client enters into a binding agreement for the purchase, sale, option or lease of the Property with a Prospective Party introduced by Finder. The Fee shall be payable as follows:

Fee Options (select applicable option(s) and complete amount)

Percentage of purchase price: % of the gross sale price

Flat fee upon closing: $

Lease fee:

If multiple options are selected, Client and Finder agree that the Fee to be applied to a particular transaction will be the option expressly identified in writing prior to or at the time of the introduction. If no option is selected, the percentage option set forth below shall control: %.

Payment Terms

The Fee shall be earned and payable upon the earlier of: (i) the closing of the transaction; or (ii) the execution of a binding contract for the transaction that results from the introduction by Finder. Client shall pay the Fee to Finder within days after the date Fee is earned. If paid by wire, wire instructions shall be provided by Finder in writing.

Payable To Payment Method (select all that apply)

Wire transfer Check Other:

Exclusions and Prior Introductions

Finder shall not be entitled to a Fee for any Prospective Party that: (i) was previously known to Client as evidenced by the Client's written records and provided to Finder in advance; (ii) is listed in writing as an exclusion in this Agreement; or (iii) is introduced by another broker to Client without Finder's prior written involvement.

Excluded Parties / Prior Contacts (if any)

Term and Termination

The term of this Agreement shall commence on the Effective Date and continue until unless earlier terminated by mutual written agreement. Termination shall not affect Finder's right to a Fee for transactions with Prospective Parties introduced during the term where a transaction closes within days after termination.

Licensing and Disclosure

Finder represents that Finder is a licensed real estate broker in the relevant jurisdiction and will disclose any broker status to all parties when required. Finder further represents that Finder's introduction does not violate any exclusive brokerage agreement to which Client is a party.

Representations, Warranties and Covenants

Each party represents and warrants that it has full power and authority to enter into this Agreement and to perform its obligations. Client warrants that it will not knowingly circumvent Finder in connection with introductions made hereunder.

Indemnification

Each party shall indemnify, defend and hold harmless the other party from and against any and all claims, liabilities, losses, damages and expenses (including reasonable attorneys' fees) arising from a breach of such indemnifying party's representations, warranties or covenants in this Agreement, or from the gross negligence or willful misconduct of the indemnifying party.

Default and Remedies

If Client fails to pay any Fee when due, Finder shall be entitled to pursue all available remedies at law or equity, including specific performance, injunctive relief and recovery of costs and attorneys' fees. The parties acknowledge that Finder's remedy at law may be inadequate and that equitable relief may be appropriate.

Governing Law and Venue

This Agreement shall be governed by and construed in accordance with the laws of the state where the Property is located, without regard to conflicts of law principles. The parties submit to the exclusive jurisdiction and venue of the state and federal courts located in the county where the Property is located for any dispute arising under this Agreement.

Notices

All notices under this Agreement shall be in writing and delivered to the addresses set forth below (or to such other address as a party may designate by notice). Notices shall be effective upon personal delivery, three days after deposit in the United States mail, postage prepaid, or one day after deposit with an overnight courier service.

Client Notice Address Finder Notice Address

Assignment; Entire Agreement; Severability

Neither party may assign this Agreement without the prior written consent of the other, except that Client may assign to an affiliate or successor in connection with a transfer of the Property. This Agreement constitutes the entire agreement between the parties relating to its subject matter and supersedes all prior understandings. If any provision is held invalid, the remaining provisions shall remain in full force and effect.

Execution; Counterparts

This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument. Signatures delivered electronically or by facsimile shall be binding for all purposes.

Client Printed Name:

By:

Date:

Finder Printed Name:

By:

Date:

What a Real Estate Finders Fee Agreement Is

A Real Estate Finders Fee Agreement is a written contract that documents the terms under which one party (the finder) is paid for introducing a buyer, seller, or investor to a real estate opportunity. It defines the scope of the introduction, the compensation formula (flat fee, percentage, or tiered payment), timing and conditions for payment, and any exclusivity or confidentiality terms. The agreement clarifies obligations, protects both parties from downstream disputes, and establishes how commissions are earned and distributed when a transaction closes or a deal advances to a defined milestone.

Why a Written Finders Fee Agreement Matters

A clear agreement reduces disputes over who introduced a deal, when compensation is due, and what constitutes a qualifying introduction; it helps enforce payment terms and demonstrates intent for tax and regulatory purposes.

Who Typically Uses This Agreement

Use a written agreement whenever compensation depends on an introduction or referral to document expectations and protect all parties.

Independent finders and lead generators working on commission-based introductions.
Real estate investors and brokers documenting paid introductions and referral splits.
Private equity or syndication sponsors engaging third parties for investor leads.

Step-by-Step: Completing the Agreement

Follow these practical steps to prepare and finalize a clear, enforceable finders fee agreement.

01

Identify Parties: Confirm legal names and entity status before drafting.
02

Define Introduction: Describe the qualifying event that triggers compensation.
03

Set Compensation: Choose fixed fee or percentage and document calculation.
04

Sign and Date: Ensure authorized signers sign and date the agreement.

Core Elements to Include in a Professional Agreement

A robust agreement anticipates common disputes and documents the precise mechanics of payment, authority, and scope.

Parties

Full legal names, business type, and contact details for each party, including mailing and tax addresses for payment and reporting.

Definition of Intro

A clear, objective description of what constitutes a qualifying introduction, including required documentation or activity.

Compensation Terms

Exact fee formula, payment milestones, withholding responsibilities, and what happens on partial or staged closings.

Exclusivity

Whether the finder has exclusive rights and the duration, or whether multiple finders can be paid for the same deal.

Representations

Simple warranties about authority, licensing (if acting as broker), and absence of conflicting obligations.

Dispute Resolution

Governing law, venue, and whether arbitration or mediation is required before litigation.

Essential Data Points to Record

Finder Name: Full legal name

Contact Info: Address, phone, email

Transaction ID: Property address or deal ID

Fee Amount: Fixed or percentage

Payment Terms: Due date and method

Signatory Authority: Title and capacity

Typical Workflow for Using This Agreement

A standardized workflow makes introductions trackable and payments easier to reconcile.

Draft Agreement: Prepare terms and examples of qualifying introductions.
Review Parties: Confirm authority and entity details before signing.
Execute Contract: Sign by all parties and date the document.
Track Introductions: Record lead source, date, and evidence of contact.

Digital Workflow Settings for Online Completion

Configure your online workflow to collect signatures, dates, and evidence of the introduction.

Field	Configuration
Signature Field	Require signer signature and date
Attachment Field	Allow proof of introduction upload
Conditional Field	Show payment details if percentage selected
Authentication	Use email or SMS code verification

Technical Considerations for eSigning and Storage

Maintain copies in a secure repository with role-based access and an immutable audit trail for each signature event.

File Formats: PDF and DOCX supported
Integrations: Connect with CRM or cloud storage
Authentication: Email, SMS, or advanced methods

Key Dates and Timing Expectations

Document and calendar important dates to avoid missed payments and reporting issues.

Effective Date:

Date signed; obligations begin on this date

Payment Trigger:

Event that creates obligation to pay (e.g., executed purchase agreement)

Payment Due Date:

Specified days after trigger or at closing

Tax Reporting:

Provide payee info for 1099 as required

Agreement Term:

Duration for exclusivity or compensation rights

Milestones from Introduction to Payment

Track major milestones so entitlement and timing are unambiguous during deal progression.

01

Introduction Logged

Finder records lead and submits evidence of first contact

02

Qualification

Buyer or investor meets criteria defined in the agreement

03

Transaction Execution

Contract signed or LOI executed triggering payment

04

Payment Settlement

Fee paid per terms—at closing or within specified days

Common Preparation Mistakes to Avoid

Using vague language about what counts as an introduction, which creates disputes when multiple parties claim credit.
Failing to document the date and evidence of the introduction, making it difficult to verify entitlement at closing.
Neglecting to check whether the finder needs a broker license in the relevant state, risking regulatory sanctions.
Omitting tax information (TIN) or treating payees incorrectly for 1099 reporting, which can trigger IRS withholding or penalties.

Risks and Legal Consequences

Unpaid Fees: Contract disputes

Regulatory Risk: Broker licensing violations

Tax Liability: Backup withholding

Enforceability: Ambiguous terms invalidated

Fraud Claims: Misrepresentation allegations

Reputational Harm: Damaged business relationships

eSignature Pricing and Feature Comparison

Common platform features and entry pricing points for eSignature providers frequently used to sign agreements like finders fee contracts.

	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	Yes, 7-day trial	No	No	Yes, limited	Yes, limited
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
Envelope Cap	No cap	100 envelopes/user/year	No cap	No cap	No cap

Frequently Asked Questions

Answers to common questions about enforceability, licensing, taxes, and digital execution for finders fee agreements.

Need help? Contact support

Is a written agreement required?
No statutory requirement exists in most jurisdictions, but a written agreement is strongly recommended to document intent, reduce disputes, and evidence payment terms for tax reporting.
Can a finder be paid without a broker license?
State rules vary. Some states prohibit unlicensed activity if the finder performs brokerage tasks; verify state licensing requirements or include limited scope language to mitigate risk.
Is an eSignature valid for this agreement?
Yes. Electronic signatures are valid under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted, provided intent, consent, attribution, and record retention requirements are met.
Do I need to notarize the agreement?
Notary requirements depend on state and intended use. Notarization adds evidentiary weight but is usually optional for private contracts unless state law or lender requirements specify otherwise.
How do I report payments for taxes?
Report paid finders or independent contractors on the appropriate information return (for example, Form 1099-NEC) and collect a correct TIN using Form W-9 as applicable.
What if multiple finders claim the same deal?
Include clear priority and evidence rules in the agreement (first introduction with dated proof or exclusive period) and describe dispute resolution to minimize contested claims.

be ready to get more

Join over 28 million airSlate SignNow users

Sign Now