[kjkre]

Hello,

Might someone know about the legality of finder's fees in the Commonwealth of PA? Specifically, if a non-real-estate-licensed investor pays a $1000 finder's fee to a non-real-estate-licensed bird dog, have either of them broken the law? If so, what might the penalties be? Any assistance would be much appreciated. Thanks.

Ken

[John Merchant]

Give your state RE Commission a call and get their take on question like this.

RE agency questions revolve around the legal issue of agency, that is the legal acting for another person. Bird-dog deals where nobody is claiming to be agent for another are legal, non agency questions so are exempt from RE licensing.

Think about this: You're selling your own knowledge and info to a buyer who can benefit from your knowledge. not claiming to be agent or collecting commission from anybody.

Of course Congress or any state legislature may have enacted some specific "anti-birddog" laws so that's why a call to your state RE commission should be done.

[kjkre]

Thank you, John

[John_Corey]

Originally Posted by John Merchant

Give your state RE Commission a call and get their take on question like this.

RE agency questions revolve around the legal issue of agency, that is the legal acting for another person. Bird-dog deals where nobody is claiming to be agent for another are legal, non agency questions so are exempt from RE licensing.

Think about this: You're selling your own knowledge and info to a buyer who can benefit from your knowledge. not claiming to be agent or collecting commission from anybody.

Of course Congress or any state legislature may have enacted some specific "anti-birddog" laws so that's why a call to your state RE commission should be done.

John,

Isn't there another test. If the person is being paid for info and not for deals done, then the bird dog is selling time or info. If the $1,000 is only paid if a deal is done (no deal, no fee) then that is a reward or commission and therefore is tied to the brokering of a deal.