Posted by David on May 26, 2009 at 07:58:08:
Just wondering since the defination of real estate brokerage is very broad and vague in KY. Would not cross the line of practicing without a license.
paying a finders fee - Posted by Kelly Cox
Posted by Kelly Cox on March 04, 2009 at 07:51:09:
Can anyone give me the contact information for a law firm that can advise me on a bussiness model of allowing a finder to partner in a property using my money?
Re: paying a finders fee - Posted by Edwin
Posted by Edwin on March 04, 2009 at 11:35:53:
Whoa! Slow down! you’re getting way too complicated! Law firm? Business model?? You don’t need any lawyer for that. If finder finds a property that you buy, you can compensate him in whatever manner you can both agree on. You need to keep this very simple. Just curious, have you found a property yet?
Re: paying a finders fee - Posted by Kelly Cox
Posted by Kelly Cox on March 04, 2009 at 11:44:12:
I understand I can compensate the finder but there could be legal ramifications to the finder if they do not have a real estate license and receive money from me.
Re: paying a finders fee - Posted by BTI
Posted by BTI on March 05, 2009 at 07:27:50:
Kelly
Depends on the state.
In California finders fee’s are legal as long as the finder limits themselves to just introducing the parties and doesn’t get involved in the details of the deal. And I have them sign a finders fee statement verifying they have only introduced me to the other party.
In other states I’ve invested in where a license is required for that activity, I made the finder a principle to the transaction and then bought out their interest in escrow.
BTI
Re: paying a finders fee - Posted by Edwin
Posted by Edwin on March 04, 2009 at 12:08:42:
Again, Kelly, I think you’re worrying way too much about technicalities and legalities. If you are willing to pay a finder’s fee, I recommend you say “to hell” with any silly law that might say you can’t pay or they can’t receive if they are not licensed. Good grief! Now, if they were demanding and are unlicensed, you might have a reason to refuse. But if we have two people who apparently get along with each other, what’s the harm in paying them? If you’re hung up on paying a finder’s fee to someone not licensed, make them a partner. Give them 10% of the profits, or a flat fee of $1000 or whatever at an agreed upon date. Or give them a loan and just “forget” to ever collect it. Personally, I don’t give a darn about a lot of so-called “rules.” If I’m honest and fair with everyone I deal with, that’s what’s most important to me.
Re: paying a finders fee - Posted by David
Posted by David on May 26, 2009 at 07:56:06:
How do you make a finder a principle to the transaction and then buy out their interest in escrow? I wonder is this legal in KY?