SDLTM03745 | Finder’s Fee

Example 5

I asked an estate agent to find a three bedroom house for me in London. I had some very particular requirements which I described in detail to the agent. The agent agreed to research the market and identify a suitable property or properties for a finder’s fee of £3,000.

The estate agent found me a house and my offer of £499,950 was accepted.

In this case the finder’s fee is charged under a separate contract with the agent and its payment is not linked to any particular purchase. The fee was given for the service of identifying a suitable property and payment was not a contractual condition of the actual purchase.

The chargeable consideration given for the property is the purchase price of £499,950