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Questions and Professional Answers

Questions and Professional Answers

  • Finders Fee

    What is the legal definishion of a finders fee. What is expected of the person who is to receive the fee other than putting two people together to make a business deal. Are there any other requirments if not stated before hand?
    • Re: Finders Fee

      if it is not agreed to before hand then there is no obligation to pay any fee.

      Ken Koury
      Kenneth P. Koury, Esq.
      22425 Ventura Blvd., #286
      Woodland Hills, CA 91364
  • Finder Fee Agreement

    where can I find a Finders fee agreement to cover a referral fee % for anyone that brings me a lead on a property? I've Googled it but nothing fits my need
    • Re: Finder Fee Agreement

      I do not know. Most forms are very general so merely give you the courage to prepare something more elaborate.basically it is going to say "If the following occurs then I agree to do the following other things" Then made a list of what you want from a referral, the dangers, how the person should be compensated [percentage of paper profit, etc., with an incentive to bring you better properties, or give them a small part of the property so that is can be considered a capital gain and not ordinary income, so the taxes are reduced in half--does not cost you anything if given only ownership without right to decide how parcel operated, sold, but gives the other person more and ties them to you more]. When you make the final of the list, put a space for both of you to check if it will apply so you do not have to retype the form each time, it is clear what does not apply as well as what applies, the other person understands you are not forcing him to do everything you might, etc.Go to some books on real estate and see what might be included. Since you are planning on making a nice sum of money on this business, once you have the form together, go to either a contract or real estate attorney and pay a few hundred dollars to avoid the possibility of any future legal action or loss of the property. If the form is really good, consider selling it to others doing the same type of business but outside your geographical area of purchases.

      George Shers
      Law Offices of Georges H. Shers
      4170 Glenwood Terrace, Suite #1
      Union City, CA 94587
  • recruiters agreement

    A recruiting company (head hunter) found an employee for a company for a position that the company was looking to fill. But, instead of hiring immediately, the company waited 6 months to hire the employee that the Recruiting Company introduced to them. The agreement between the recruiting company and the company that hired the employee 6 mos. later, did not have any language in their agreement which, prevented them from doing this. They basically waited 6 mos. to hire, to avoid paying the finders fee. Is the company that hired the employee still responsible to paying the Recruiting Company their 20% finders fee? Is there any case law on this that makes that company responsible for paying the recruiting company?
    • Re: recruiters agreement

      The short answer is "yes", there are a couple of potential causes of action which may or may not apply such as quantum meruit, breach of the implied covenant of good faith and fair dealing and even tortious interference with contract. However, I (or any attorney) would need to see the agreement and hear more of the facts before giving a more definite answer.

      Marshall Isaacs
      Marshall R. Isaacs, Attorney At Law
      20 Vesey Street, Suite 503
      New York, NY 10007
  • finders fee

    If a party introduces a professional to an employment opportunity and a contract is secured by the professional, is he obligated to pay a finders fee to the party that made the introduction. In this case, the party is not a professional head hunter, nor an agent, there was not any mention of a finders fee expected or that one would be granted on the part of the employer or the professional that was hired. The contract was negotiated entirely between the employer and the professional without imput or advice from the party that made the introduction. There was no contract between the party making the introduction with anyone that was involved in the deal.
    • Re: finders fee

      Doesn't sound as though there would be any obligation here other than a sincere "thank you."

      Bryan Whipple
      Bryan R. R. Whipple, Attorney at Law
      P O Box 318
      Tomales, CA 94971-0318
    • Re: finders fee

      Unless there are facts and circumtances you are not mentioning which which would support the reasonable inference of compensation (contracts can be written, oral, and also implied), then, no, any information or help provided you would likely be a gift, with no compensation, commission, or finders fee due.

      Jonas Grant
      Law Office of Jonas M. Grant, P.C.
      3500 West Olive Ave., Suite 300
      Burbank, CA 91505
  • finders fees

    If I only intoduce to a law firm, an individual or group of individuals that have health problems due to the effects of their work envirnment and the law firm agrees to take them on as a client, and they reach either a settlement or award, can I as a non lawyer be eligible to receive a referral or finders fee of a portion of the settlement, if it is negotiated at the beginning before the introduction?
    • Re: finders fees

      No

      Raymond Weicker
      Qua, Hall, Harvey & Walsh
      25 Fletcher Street
      Chelmsford, MA 01824-2746
    • Re: finders fees

      This would be considered fee-spliting with a non-attorney and is not allowed.Sorry.

      Tom Flynn
      Law Offices of Thomas V. Flynn
      67 Mayflower Lane
      Rochester, MA 02770
    • Re: finders fees

      No. Any attorney who did this would be subject to disciplinary action. As this is illegal fee splitting.

      Jonathan Roth
      Donovan Hatem LLP
      Two Seaport Lane 8th floor
      Boston, MA 02210
  • Finders fee agreement

    I found a way to get people money owed to them that they are unaware of,but I want to receive a percentage for doing so.Would u be able to help me or give me a form letter that I could send out?Thank U
    • Re: Finders fee agreement

      You should see a lawyer for this. There is no way to draft a general contract without more detailed information about what you plan to do.

      Alan Wagner
      Wagner, Vaughan & McLaughlin, P.A.
      601 Bayshore Boulevard; Suite 910
      Tampa, FL 33606
  • Legal protections for finders fee situation?

    A woman I work with and myself are in a postion to put together a company that her husband works for and a company that I used to work for to produce a nationwide computer network cable contract (300 sites, avg 12-15 computers each, though some sites have as many as 300 computers). This could turn out to be a 6- or 7-figure contract. At a finders fee of 5-10% we're talking fairly significant $$$. What kind of legal actions/precautions do I need to take in a situation like this?
    • Re: Legal protections for finders fee situation?

      At the very least, you should have a contract with at least one of the parties, and preferably both. You should also consider additional compensation if the scope of the business exceeds that which is anticipated at this time. If you call me at 401-885-7200, we could set up an appointment to discuss the matter.

      Patricia Joyce
      Law Office of Patricia M. Joyce
      230 Chestnut Drive
      East Greenwich, RI 02818-2120
  • contract renewals

    I have been working with an employment agency for a professional employee. I now want to hire this employee directly and they are demanding a large finders fee. I did sign a contract 2+ years ago for a different employee but never for this employee. That contract employee had a much different and lower finders fee. They stated that the contract renewal was automatic. Are contracts that have automatic renewals binding? Is it state by state or Federal? What about between states? I am in NJ and they are in Utah.
    • Re: contract renewals

      It would be absolutely necessary to review the contract. I'd be very careful about trying to obtain general information about contract law via the internet. I'd contact your local county bar association for a referal for a contract litigation attorney. Or you can call me tomorrow at 908.301.9095.

      Fred Shahrooz Scampato
      Law Office of Fred Shahrooz Scampato
      445 East Broad Street, 2nd Fl
      Westfield, NJ 07081
    • Re: contract renewals

      You really need to review the terms of the contract carefully. Specifically, does the contract mention renewals? Does it indicate which State law would apply to any disputes? Does it encompass future or other employees? Please feel free to contact me should you wish to discuss this further.

      Scott Levinson
      Korybski & Levinson
      150 Broadway
      New York, NY 10038
  • Finders Fee

    I am an consultant who was asked by a client to find a solution for her cash flow problem. Ultimately, she could not borrow money from a traditional source due to poor credit. She did have a building that did not have a mortgage and she asked me to help find a buyer although she had a real estate broker who was not having much success. At the same time, I had inquired of an associate about obtaining a mortgage on the property. He said he was interested in purchasing the property if he could get it at a certain price and he would give me a finders fee. The seller signed and promised to give me a 2% commission to find a buyer. The real estate broker and the buyer that I found for the property are now in collusion to exclude me from the deal in an effort to avoid paying commission. My contract with the buyer was a verbal understanding as I have known them as a mortgage broker for 20 years. I have a contract with the seller because I did not really know her although I also have a msg. on my machine and a text msg. by her stating her intention to pay me. How will I be able to enforce the contract with the seller and get a finders fee from the buyer under the circumstances that I briefly outlined above.
    • Re: Finders Fee

      If you're getting a commission from the seller it's a conflict of interest to get paid by the buyer as well. Besides, you have no written agreement with the buyer. All transactions in real estate must be in writing. If you want to be paid by both sides, you must disclose that fact to both sides beforehand and have them sign off on the conflict of interest. Good luck.

      George Zuganelis
      George M. Zuganelis, Attorney at Law, P.C.
      6847 W. Cermak Rd.
      Berwyn, IL 60402
    • Re: Finders Fee

      Besides the concerns raised by Mr. Zuganelis, I am also going to be the bearer of bad news. I don't believe you have the legal right to be paid because you are not licensed as a real estate broker/agent. I have this discussion with people a lot. The way I read the licensing law, if you bring a buyer and seller together, you're performing real estate broker services. And in order the get a real estate brokers commission, you need that type of license. I'm not saying it's right, but that's what the licensing law says.

      Nicholas Chrisos
      Nicholas G. Chrisos Attorney at Law
      5 E. College Dr. Suite 112
      Arlington Heights, IL 60004
    • Re: Finders Fee

      Consider this a life lesson. You need to let this one go. You would be violating the Illinois Real Estate License Act if you accept a fee for this. Get your real estate broker's license and do this legally if you want to do this in the future.

      Thomas Moens
      Moens Law Offices, Chartered
      1523 52nd Avenue
      Moline, IL 61265
  • non-compete and introductions

    I recently made an introduction of a family friend and a former business acquaintance. Through this introduction my business acquaintance has closed several deals and wants to compensate me for making the intro, calling it a finderís fee, and paying me on a 1099. The issue is we (the acquaintance and I) both work in similar career fields and the family friend works at one of my customers. Can I accept this finders fee without violating my non-compete? Would drafting a document defining exactly what the payment was for help and are there any limits to an amount of the finders fee? I'm worried both about myself (from the non-compete side) and his business (my company suing him for any revenue derived from the introduction.
    • Re: non-compete and introductions

      An attorney would have to look over the language of the non-compete to see if your actions came under that or not.A document setting forth the terms of the agreement between you and your family friend would be a good idea, but only after the non-compete issue has been settled.

      Peter Bradie
      Bradie, Bradie & Bradie
      6606 FM 1488, Suite 148-363
      Magnolia, TX 77354-2544