Finder’s Fee

A finder’s fee is the compensation or reward provided to an individual or entity for working as an intermediary in successfully completing a business transaction, such as a real-estate sale. A typical example would include a friend or acquaintance selling a house who uses you to find a willing buyer for the property. The sale goes through successfully, and your friend or acquaintance may offer a small reward for helping close the deal. In that case, the reward you would have been offered is the finder’s fee. The party offering the finder’s fee may or may not be obligated to pay depending on the terms of their proposal. If the finder’s fee is a contractual agreement, then the contracting party is obligated to pay the fee. If there is no contractual agreement, the party is not obligated to pay but may do so as a gift or out of a sense of moral obligation.