What are the issues to look for in a finder’s agreement?
New Jersey business transactions attorney, Harold I. Steinbach, discusses commission rates of finder’s fees, costs in marketing, exclusivity and add-on periods.
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Phone: (201) 525-1990
Naturally, what’s the commission rate, the seller wants to make sure it’s only payable if and when there’s a closing. Does the finder have certain obligations to expend costs in marketing? They’re usually exclusive but the seller may try to negotiate a lower commission if it finds its own buyer. You would negotiate the add on period, how long after the period of time if a deal happens that was introduced during the term will the finder get compensated for. Perhaps if the purchase price is paid over time perhaps the finder will take his or her commission over time.