Real Estate Finders Fee Agreement Template for South Africa

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Key Requirements PROMPT example:

Real Estate Finders Fee Agreement

"I need a Real Estate Finders Fee Agreement for my UK-based investment company searching for commercial properties in Cape Town, with a 2% success fee structure and exclusive rights until March 2025, including specific provisions for cross-border payments and currency considerations."

Document background
The Real Estate Finders Fee Agreement is essential for businesses and individuals seeking to engage professional services for property identification in South Africa. This document is commonly used when a principal wishes to retain the services of a finder to identify suitable properties for purchase, lease, or investment, without engaging in a full property agency relationship. The agreement protects both parties by clearly defining the scope of services, success fee structure, and conditions for payment, while ensuring compliance with South African legislation including the Estate Agency Affairs Act, Property Practitioners Act, and Consumer Protection Act. It's particularly relevant in commercial real estate transactions where specialized knowledge is required to identify suitable properties, and where significant fees may be involved based on successful introductions.
Suggested Sections

1. Parties: Identifies and provides full details of the principal and the finder, including registration numbers and addresses

2. Background: Explains the context of the agreement, including the principal's desire to find property and the finder's ability to provide such services

3. Definitions: Defines key terms used throughout the agreement, including 'Property Requirements', 'Success Fee', 'Introduction', and 'Qualifying Transaction'

4. Appointment: Formal appointment of the finder and scope of authority

5. Services: Detailed description of the services to be provided by the finder

6. Success Fee: Specifies the fee structure, calculation method, and payment terms

7. Payment Terms: Details when and how payment will be made, including any conditions precedent

8. Duration: Specifies the term of the agreement and any applicable extension periods

9. Obligations of the Finder: Lists the finder's responsibilities and commitments

10. Obligations of the Principal: Lists the principal's responsibilities and commitments

11. Exclusivity: States whether the arrangement is exclusive or non-exclusive

12. Confidentiality: Provisions regarding confidential information and its protection

13. Termination: Conditions and procedures for terminating the agreement

14. General Provisions: Standard legal clauses including notices, governing law, and jurisdiction

Optional Sections

1. Multiple Properties: Include when the finder may identify multiple properties or when success fee structures vary by property type

2. Co-operation with Other Agents: Include when the finder may need to work with other real estate agents or professionals

3. International Transactions: Include when dealing with international property searches or foreign principals

4. Non-Circumvention: Include to prevent direct dealings between principal and property owners/agents introduced by the finder

5. Dispute Resolution: Include specific arbitration or mediation procedures if desired as an alternative to court proceedings

6. Force Majeure: Include when needed to address unforeseen circumstances that may affect performance

7. FICA Compliance: Include detailed Financial Intelligence Centre Act compliance requirements when dealing with high-value transactions

Suggested Schedules

1. Schedule A - Property Requirements: Detailed specifications of the type, location, and characteristics of properties being sought

2. Schedule B - Fee Structure: Detailed breakdown of success fee calculations, including any sliding scales or special circumstances

3. Schedule C - Excluded Properties: List of properties already known to the principal or excluded from the agreement

4. Appendix 1 - Required Documentation: List of documents required for proper introduction and verification of properties

5. Appendix 2 - Introduction Protocol: Formal procedure for introducing properties and documenting such introductions

6. Appendix 3 - Compliance Checklist: Checklist of regulatory requirements and necessary compliance steps

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant Industries

Real Estate

Commercial Property

Residential Property

Property Development

Property Investment

Corporate Real Estate

Industrial Property

Retail Property

Hospitality Property

Asset Management

Relevant Teams

Legal

Real Estate

Property Management

Business Development

Acquisitions

Investment

Compliance

Finance

Operations

Facilities Management

Relevant Roles

Real Estate Agent

Property Finder

Property Consultant

Real Estate Broker

Property Acquisition Manager

Real Estate Investment Manager

Business Development Manager

Property Portfolio Manager

Corporate Real Estate Manager

Facilities Manager

Legal Counsel

Contract Manager

Real Estate Director

Chief Investment Officer

Property Development Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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