What is the standard contract used for a finders fee?

[n-investor]

I am referring some land to an investor for a possible purchase. If the sale goes through what type of contract should I have in place before this occures?  Any help on this would be greatly appreciated.

Thanks

[tedjr]

Howdy N-investor:

Not really sure there is a standard contract for a finders fee. It has to be in writing to be enforceable as all real estate agreements are subject to the statute of frauds. If I were you I would just start writing up something that the two of you agree to and hope it works.

[Roger J]

I guess that the "standard" contract for that sort of thing is an independent contractor's agreement.

However, in my experience, it's been better to simply have an oral agreement on a finder's fee, ie, "I've got a possible deal here.  I want $xxx amount if you buy it.  Interested?"

The "standard" finder's fee is usually $250-$1000 depending on the deal, so normally, it's not worth the effort to draw up a contract that would cost you more in court fees to collect than what you'd be collecting.

If the investor doesn't pay as agreed, the simple solution is to not work with the EVER again, and to make sure when asked, that you wouldn't recommend anyone else working for them either (no slander, just the facts).

Investors who don't pay their birddogs don't stay in business long.

Raj