Finders Fee Agreement (Real Estate) Template for Philippines

The Finder's Fee Agreement (Real Estate) is essential in Philippine real estate transactions where property owners seek to expand their network of potential buyers or lessees through informal channels. This document type is specifically designed to comply with the Real Estate Service Act (RESA) and other relevant Philippine laws, creating a clear distinction between licensed real estate professionals and individuals acting solely as introducers. The agreement becomes necessary when property owners wish to incentivize introductions while maintaining legal compliance and clearly defining the scope of the finder's activities. It includes crucial elements such as property details, compensation structures, payment triggers, and compliance requirements, making it suitable for both commercial and residential property transactions. The document helps prevent future disputes by clearly outlining the conditions under which a finder's fee becomes payable and the specific amount or calculation method of such fees.

1. Parties: Identifies the principal/property owner and the finder, including complete legal names and addresses

2. Background: Explains the context of the agreement, including the principal's desire to sell/lease property and finder's capability to introduce potential buyers/lessees

3. Definitions: Defines key terms used throughout the agreement, including 'Successfully Introduced Party', 'Property', and 'Finder's Fee'

4. Appointment and Scope: Defines the finder's role, specifically noting that the finder is not acting as a licensed real estate broker

5. Property Details: Specific description of the property(ies) covered by the agreement

6. Finder's Services: Detailed description of permitted activities and limitations of the finder's role

7. Fee Structure: Details of the finder's fee calculation, payment terms, and conditions for fee entitlement

8. Payment Terms: Specifics about when and how payment will be made, including any escrow arrangements

9. Term and Termination: Duration of the agreement and circumstances for termination

10. Representations and Warranties: Statements affirming legal capacity, compliance with RESA, and other relevant laws

11. Confidentiality: Obligations regarding confidential information and property details

12. Compliance with Laws: Specific mention of compliance with RESA and other applicable Philippine laws

13. Governing Law: Specification of Philippine law as governing law

14. Dispute Resolution: Process for resolving disputes under Philippine jurisdiction