Legal Question in Real Estate Law in Illinois
Finders Fee
I am an consultant who was asked by a client to find a solution for her cash flow problem. Ultimately, she could not borrow money from a traditional source due to poor credit. She did have a building that did not have a mortgage and she asked me to help find a buyer although she had a real estate broker who was not having much success. At the same time, I had inquired of an associate about obtaining a mortgage on the property. He said he was interested in purchasing the property if he could get it at a certain price and he would give me a finders fee. The seller signed and promised to give me a 2% commission to find a buyer. The real estate broker and the buyer that I found for the property are now in collusion to exclude me from the deal in an effort to avoid paying commission. My contract with the buyer was a verbal understanding as I have known them as a mortgage broker for 20 years. I have a contract with the seller because I did not really know her although I also have a msg. on my machine and a text msg. by her stating her intention to pay me. How will I be able to enforce the contract with the seller and get a finders fee from the buyer under the circumstances that I briefly outlined above.
3 Answers from Attorneys
Re: Finders Fee
If you're getting a commission from the seller it's a conflict of interest to get paid by the buyer as well. Besides, you have no written agreement with the buyer. All transactions in real estate must be in writing. If you want to be paid by both sides, you must disclose that fact to both sides beforehand and have them sign off on the conflict of interest. Good luck.
Re: Finders Fee
Besides the concerns raised by Mr. Zuganelis, I am also going to be the bearer of bad news. I don't believe you have the legal right to be paid because you are not licensed as a real estate broker/agent. I have this discussion with people a lot. The way I read the licensing law, if you bring a buyer and seller together, you're performing real estate broker services. And in order the get a real estate brokers commission, you need that type of license. I'm not saying it's right, but that's what the licensing law says.
Re: Finders Fee
Consider this a life lesson. You need to let this one go. You would be violating the Illinois Real Estate License Act if you accept a fee for this. Get your real estate broker's license and do this legally if you want to do this in the future.
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