Expert: Brian Bocchieri - 3/25/2008

Question
Dear Brian:
After years of library science experience I decided to locate things for people in exchange for finders's fee.
I have been successful at locating but not successful at getting paid finders fee for having done the work.
I am about the enter a real estate deal where the broker says that it is illegal to pay a finders fee but I could possible receive a fee by avenue of acting as a "marketing rep,"  Could you give some pointers on how I can receive my finders fee and also what are the parameters involved in being a marketing rep?
regards,
James

Answer
That is a very interesting question.  Are you working in the commercial or residential field?  

I am not sure of the legality in the residential market my understanding is as long as it is disclosed by all parties and it is on the HUD settlement statement it is legal.  

My suggestion is to  create a fee agreement that the person who is to pay your fee will sign.  Once you have this document signed it then goes to the closing agent (title company,attorney) whomever is to create the HUD settlement document.  By doing this you are fully disclosing to all parties what is happening within the transaction.   

Once this becomes part of the closing documents you will be paid at the closing table.  Now a few words of caution there are people who reneg on deals you should have these documents in place before you introduce the parties.  Another point when dealing with corporate entities be sure the proper person has the authority to sign on behalf of the corporation otherwise you will not be paid.  

As a mortgage broker we pay fees to parties who bring us deals that we close we pay them and issue a 1099.

Should you like to become a brid dog for commercial mortgages let me know.

I hope this has helped.  

Wishing you all the best.

Brian Bocchieri

brian-bocchieri@hotmail.com