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finders fees

Is it common for finders fees to be paid in business transactions if you locate a buyer or a seller for opposite party. Also can brokers pay a finders fee for someone to bring in a buyer for them. what is the fee percentage in comparison to price of business. Thank You.

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The BAF Group LLC
MD

It is common in some areas, among some Brokers. There is no written, ethical guideline. Frankly, I don't pay such referrals to an attorney - they don't pay me! The same with accountants, bankers and other professionals that get and give such referrals. It is more of a, you scratch my back scenario.

In Real Estate, it is illegal to pay such referrals to a non-licensed person, in most (if not all) states. It may also be that way in states where Business Brokers are licensed under the Real Estate Commission.

What I am telling you is, talk to your Broker-friend. Find out what he/she does or can do.

Feb 3, 2010

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