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Simple English definitions for legal terms
finder's fee
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A quick definition of finder's fee:
A finder's fee is a payment given to someone who helps bring two parties together for a business deal. This person acts as a middleman and without their help, the deal may not have happened. The fee can be paid by either the buyer, seller, or both, and is agreed upon beforehand. Finder's fees are used in many industries, such as finding investors for new businesses or new employees for companies, or in real estate or mergers and acquisitions transactions.
A more thorough explanation:
A finder’s fee is a commission paid to a person who helps to bring together two parties for a business transaction. This person is called a "finder" because they help to find the other party. The finder's fee is paid as a reward for their help.
For example, let's say that a company is looking for a new employee. They might offer a finder's fee to someone who recommends a candidate that they end up hiring. The fee would be paid to the person who made the recommendation.
Another example is in real estate. A person might offer a finder's fee to someone who helps them find a buyer for their property. The fee would be paid to the person who helped to find the buyer.
The important thing to remember is that the finder's fee is only paid if the transaction goes through. If the two parties don't end up doing business together, then there is no fee.