Home Buying in 31315>Question Details

Jenifromga, Other/Just Looking in 31315

I am wondering if I can ask the realtor for a 1% finders fee on my friend's $5M house?

Asked by Jenifromga, 31315 Fri Oct 28, 2011

I met with the realtor several times and finally found a house! Now I am wondering if I can ask for a 1% finders fee on a $5M house. I've done most of the work, just waiting on the arrival of my friend to settle the final details. My friend felt as though I am fully entitled to this. I am not licensed for real estate in any state, but I cannot find if GA allows an unlicensed person to receive such commission.

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Let us know how that works out...
1 vote Thank Flag Link Fri Oct 28, 2011
You are acting on behalf of your friend who cannot be here to look at property themselves, correct? You are appointed and asked to do a favor for this person, to be there eyes & ears looking for their next home, of which you agreed. I find it a bit over the top, bordering ridiculous, that you ask for a finder's fee now, unless you already have an agreement. Based on the info you provided & below responses, It does not app[ear that you have a written, formal agreement & it appears as though you can't even get a fee in the state you are in unless you are licensed, so the short answer is no.

You met with the Realtor &" finally found a house". Did you ask to see this particular property or did the Realtor find it based on the criteria of what your friend was looking for? In other words, did you do ALL the research, including pouring through who knows how many listings, set up the appointments to view the homes with the other agents, once a home was found, establish the true market value of the property through active, pending & sold data? Prepare the contract? Set up ALL Inspections? etc, etc, etc.

Who brought up the finder's fee? You? Your friend? If you are doing a "favor" for your friend & there was no talk of money BEFORE they made an offer, then why now? If your friend willing to pay this finder's fee? I don't believe the Realtor should.

You are doing your friend a favor here, don't now muddy the waters on their property purchase for your personal gain. This could get messy.
1 vote Thank Flag Link Fri Oct 28, 2011
If Georgia is similar to Florida the realtor for your friend is being compensated by the listing agent. The commission is guaranteed through an agreement and compliance with multiple listing service and licensing. Unfortunately it has nothing to do with how you helped your friend. Now if your friend feels that you were of service - I doubt there is anything that prevents her from
0 votes Thank Flag Link Sat Oct 29, 2011
In Georiga, we're only allowed to share our commission with another real estate licensee or the actual client who buys or sells real estate.
Hope this helps!
0 votes Thank Flag Link Sat Oct 29, 2011
Hi Jeni....

You can certainly ask...
A "finder's fee" is different than a commission even though it may "quack like a duck". However, the state of GA has specific statutes that may say it's a duck....
That being said, your friend is able to negotiate with the agent, and can negotiate the commission. They are free to pay you a consulting fee etc. I agree with some of you other answers regarding working with an attorney so you are totally sure you are in compliance with GA statutes.
Jim
0 votes Thank Flag Link Sat Oct 29, 2011
I suppose your friend can pay you 1%, if they feel they you are entitled to it, but the commission arrangement is between the seller and the brokerage.

The basic idea here is neither you nor your friend have any right to any part of the commission. If you or your friend feel otherwise, then, I suggest you seek legal counsel.

All the best,
0 votes Thank Flag Link Fri Oct 28, 2011
If it's structured as a commission--no, you can't. Sorry.

However . . .

It could be structured otherwise. Perhaps as a consulting fee. Or marketing services. Check with a lawyer on what to call it and how to structure it.

Hope that helps.
0 votes Thank Flag Link Fri Oct 28, 2011
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
In most if not all states, only actively licensed real estate agents can receive commissions / referral fees for real estate transactions. Said commissions / fees can be paid only by the Broker. As you are not a licensed real estate agent, you will not be able to collect a 'finder's fee" or any other fee for the transaction.
Web Reference: http://LewCorcoran.com
0 votes Thank Flag Link Fri Oct 28, 2011
From everything I have heard, only a licensed agent in GA can receive a referral fee from another agent. Anything else could possibly be classified be a RESPA violation as well.
0 votes Thank Flag Link Fri Oct 28, 2011
It never hurts to ask, Jeni. but would have helped if you had a finder's fee agreement in place prior to the offer on the purchase being made, in my humble estimation. Please keep us posted as to how this unfolds. Good Luck!

Michael Hammond
SellsRealty@gmail.com
404-538-5499

http://www.georgiamls.com/agentsite/index.cfm?SiteID=HAMMONDJOHNM

http://www.chapmanhallprofessionals.com
0 votes Thank Flag Link Fri Oct 28, 2011
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