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In California, a finders exception, allowing an unlicensed person to be compensated for introducing parties to a real estate transaction, has been judicially approved since 1923. As explained by Californias Supreme Court in Tyrone v. Kelley (1973) 9 Cal.
In general, a finders fee is paid to a person that acted as an intermediary among parties that would not have made the deal or transaction without such intermediation. Depending on the type of transaction or the agreement made by the parties, the buyer, the seller, or both parties may have to pay the finders fee.
A consulting referral fee of 5-15% is common. On a large deal with a low level of involvement, youre looking at a finders fee of 1-5%. On a smaller deal with a high level of involvement, the finders fee can go from 5% all the way up to 35%.
In general, a finders fee is paid to a person that acted as an intermediary among parties that would not have made the deal or transaction without such intermediation. Depending on the type of transaction or the agreement made by the parties, the buyer, the seller, or both parties may have to pay the finders fee. finders fee | Wex Legal Dictionary / Encyclopedia - Law.Cornell.Edu cornell.edu wex findersfee cornell.edu wex findersfee
A finders fee need not be excessive the most common structure is between 5-15% of the deal value (agreed upon by both parties ahead of time).
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