finders fees - Posted by Bill Lewis

Real Estate Investing Real Estate Financing
1

Posted by Tom-FL on May 12, 2004 at 22:24:51:

http://www.legis.state.il.us/legislation/ilcs/ilcs4.asp?DocName=022504540HArt.+1&ActID=1364&ChapAct=225�ILCS�454%2F&ChapterID=24&ChapterName=PROFESSIONS+AND+OCCUPATIONS&SectionID=23805&SeqStart=1000&SeqEnd=2300&ActName=Real+Estate+License+Act+of+2000.

“Broker” means an individual, partnership, limited liability company, corporation, or registered limited liability partnership other than a real estate salesperson or leasing agent who for another and for compensation, or with the intention or expectation of receiving compensation, either directly or indirectly:
( 1) Sells, exchanges, purchases, rents, or leases real estate.
( 2) Offers to sell, exchange, purchase, rent, or lease real estate.
( 3) Negotiates, offers, attempts, or agrees to negotiate the sale, exchange, purchase, rental, or leasing of real estate.
( 4) Lists, offers, attempts, or agrees to list real estate for sale, lease, or exchange.
( 5) Buys, sells, offers to buy or sell, or otherwise deals in options on real estate or improvements thereon.
( 6) Supervises the collection, offer, attempt, or agreement to collect rent for the use of real estate.
( 7) Advertises or represents himself or herself as being engaged in the business of buying, selling, exchanging, renting, or leasing real estate.
( 8) Assists or directs in procuring or referring of prospects, intended to result in the sale, exchange, lease, or rental of real estate.
( 9) Assists or directs in the negotiation of any transaction intended to result in the sale, exchange, lease, or rental of real estate.
(10) Opens real estate to the public for marketing purposes.
(11) Sells, leases, or offers for sale or lease real estate at auction.

“Compensation” means the valuable consideration given by one person or entity to another person or entity in exchange for the performance of some activity or service. Compensation shall include the transfer of valuable consideration, including without limitation the following:
( 1) commissions;
( 2) referral fees;
( 3) bonuses;
( 4) prizes;
( 5) merchandise;
( 6) finder fees;
( 7) performance of services;
( 8) coupons or gift certificates;
( 9) discounts;
(10) rebates;
(11) a chance to win a raffle, drawing, lottery, or similar game of chance not prohibited by any other law or statute;
(12) retainer fee;
(13) salary.

2

finders fees - Posted by Bill Lewis

Posted by Bill Lewis on May 12, 2004 at 10:30:30:

Dear Sir,

I have a simple question. I locate properties in the Central Illinois area and get them under contract at a low rate and then sell my contractual rights to another investor. This I know is legal and I have not had any problems with. However, from time to time I am unable to get the property under contract for one reason or another (bank reo, real estate agents etc.) and I still would like to make a profit on these deals by informing another investor about the deal I found. I have read about charging a simple finders fee for the information and then letting the investor close on the deal with the final contract but some questions have arised. Some of the realtors that I have discussed this possibility with have told me that this may be illegal in my area because I do not have my real estate licence. Can you please clear up what the law is on this.

Thank You,

Bill Lewis
REI

3

Re: finders fees - Posted by Pauline Blankenship

Posted by Pauline Blankenship on October 07, 2005 at 15:31:35:

Can my husband find properties and then inform a real estate agent so that the agent can then represent the seller, and then my husband can be paid a finders fee, from the real estate agent? This would be in Texas.
Thanks for the help.