Finder's Fee Agreement Template for Canada

A Finder's Fee Agreement spells out how someone gets paid for connecting buyers and sellers or helping businesses find what they need. Think of it as a formal handshake deal that sets clear rules about who gets rewarded for making successful introductions, especially common in real estate and business deals across Canada.

Under Canadian securities laws, these agreements must clearly outline compensation terms and follow provincial regulations about who can receive finder's fees. The payment usually ranges from 2% to 10% of the deal's value, and the agreement protects both parties by defining what counts as a successful connection and when the fee becomes payable.

Use a Finder's Fee Agreement when connecting parties in high-value transactions, especially in real estate, business mergers, or investment deals. This agreement becomes essential before making any introductions that could lead to a successful deal, protecting your right to compensation for your networking efforts.

The timing is crucial - put this agreement in place before making any introductions or sharing leads. Canadian securities regulations require documented finder's fee arrangements, particularly when dealing with private placements or investment opportunities. Having clear terms upfront prevents disputes about who deserves credit for bringing parties together and establishes exactly how much compensation you'll receive.

• Finders Fee Consulting Agreement: Combines consulting services with finder's duties, ideal for business advisors who both source opportunities and provide expertise
• Introduction Fee Agreement: Focuses solely on connecting parties, commonly used in professional networking and business matchmaking scenarios
• Finder Fee Agreement For Sales Leads: Specifically designed for sales context, with commission structures tied to successful lead conversion and revenue generation

• Business Intermediaries: Professionals who connect buyers with sellers, including business brokers, real estate agents, and investment matchmakers seeking compensation for successful introductions
• Corporate Development Teams: Company representatives tasked with finding acquisition targets or strategic partners who engage finders to expand their reach
• Independent Consultants: Advisory professionals who source deals or investment opportunities while maintaining compliance with Canadian securities regulations
• Legal Counsel: Lawyers who draft and review these agreements to ensure they meet provincial requirements and protect their clients' interests

• Basic Deal Details: Gather exact names and contact information for all parties, plus clear description of the introduction or connection being compensated
• Compensation Structure: Define the exact fee amount or percentage, payment timing, and any conditions that must be met
• Success Criteria: Outline what constitutes a successful introduction and triggers payment obligation
• Provincial Rules: Check local securities regulations about who can legally receive finder's fees in your province
• Term Length: Decide how long the finder has exclusive rights to make introductions and when the agreement expires
• Documentation Plan: Set up tracking system for introductions made and their outcomes

• Parties and Scope: Full legal names and contact details of finder and client, plus clear description of introduction services
• Fee Structure: Detailed payment terms, calculation method, and conditions triggering payment obligation
• Success Definition: Specific criteria defining what constitutes a successful introduction
• Term and Territory: Agreement duration, geographic limitations, and any exclusivity provisions
• Confidentiality: Rules about handling sensitive business information during introductions
• Compliance Statement: Confirmation that arrangement follows provincial securities regulations
• Dispute Resolution: Clear process for handling disagreements under Canadian jurisdiction

A Finder's Fee Agreement often gets confused with a Broker Agreement, but they serve distinct purposes in Canadian business transactions. While both involve facilitating deals, their scope and obligations differ significantly.

• Level of Involvement: Finders simply introduce parties and step back, while brokers actively negotiate, structure deals, and often need specific licenses
• Compensation Structure: Finder's fees are typically one-time payments for successful introductions, while broker fees often include ongoing commissions and complex payment structures
• Legal Requirements: Brokers must meet stricter regulatory requirements and licensing obligations under Canadian securities law; finders face fewer restrictions
• Service Scope: Broker agreements cover detailed services like market analysis, negotiation, and transaction management, while finder's agreements focus solely on making introductions