The Property Finder's Fee Agreement is essential in South African real estate transactions where property owners or developers engage individuals or companies to source potential buyers or tenants. This document type has become increasingly important in the South African property market, where specialized finders operate alongside traditional estate agents. The agreement defines the finder's role, compensation structure, and obligations while ensuring compliance with South African legislation, particularly the Property Practitioners Act 22 of 2019 and consumer protection laws. It's commonly used when property owners seek to expand their reach beyond traditional sales channels or when dealing with specialized property types requiring targeted buyer identification. The agreement typically includes detailed provisions about the property, target buyer/tenant profiles, fee structures, and success criteria.
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1. Parties: Identifies and provides full details of the principal (property owner) and the finder, including registration numbers for companies or ID numbers for individuals
2. Background: Explains the context of the agreement - that the principal wishes to sell/lease property and engage the finder to identify potential buyers/tenants
3. Definitions: Defines key terms used throughout the agreement including 'Property', 'Successful Transaction', 'Finder's Fee', 'Prospective Buyer/Tenant'
4. Appointment: Formal appointment of the finder and scope of authority
5. Finder's Services: Detailed description of services to be provided by the finder
6. Duration: Term of the agreement, including commencement date and termination provisions
7. Finder's Fee Structure: Detailed explanation of fee calculation, payment triggers, and payment terms
8. Payment Terms: Specifics about when and how payment will be made, including invoice requirements
9. Obligations of the Principal: Principal's responsibilities including providing accurate information and cooperating with the finder
10. Representations and Warranties: Standard warranties about authority to contract and accuracy of information
11. Confidentiality: Provisions regarding confidential information and its protection
12. General Terms: Standard contract clauses including notices, entire agreement, variation, and governing law
1. Exclusivity: Used when the finder has exclusive rights to find buyers/tenants for the property
2. Multiple Properties: Include when the agreement covers multiple properties
3. International Transactions: Required for cross-border transactions, including currency provisions and international payment terms
4. Sub-agents: Include if the finder is permitted to appoint sub-agents
5. Marketing Obligations: Used when specific marketing activities are required
6. Dispute Resolution: Optional detailed dispute resolution procedures including mediation or arbitration
7. Force Majeure: Include for longer-term agreements to address unforeseen circumstances
8. Non-circumvention: Used to prevent direct dealings between principal and prospects introduced by finder
1. Property Details: Detailed description of the property/properties covered by the agreement
2. Fee Schedule: Detailed breakdown of fees, including any sliding scales or special circumstances
3. Required Documentation: List of documents required for verification of successful transactions
4. Approved Marketing Material: Templates or guidelines for marketing materials if applicable
5. Reporting Requirements: Templates and timing for required reports from finder to principal
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Property Development
Commercial Property
Residential Property
Industrial Property
Retail Property
Property Investment
Construction
Hospitality
Agriculture
Relevant Teams
Legal
Real Estate
Property Management
Business Development
Compliance
Finance
Operations
Investment
Asset Management
Risk Management
Commercial
Relevant Roles
Property Manager
Real Estate Agent
Property Developer
Investment Manager
Business Development Manager
Property Finder
Asset Manager
Commercial Director
Legal Counsel
Property Portfolio Manager
Acquisitions Manager
Real Estate Broker
Property Consultant
Investment Analyst
Compliance Officer
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