Is finding a piece of real estate for a buyer and being given a finders fee by the buyer legal?I researched and found a property for a buyer...

Question

Is finding a piece of real estate for a buyer and being given a finders fee by the buyer legal?

I researched and found a property for a buyer and put him in touch with the seller and he bought the property and is closing and the title company attorney is telling me that is illegal. I am not realtor and can not receive a payment for that service.

I am a licensed GC and could invoice them a consulting fee however, she said. But it could not be based on commission, it would have to be hourly or flat fee based.

Please tell me if I can earn the fee in my name and be paid on the HUD? I do not do any service that could be construed as realtor based service.

Thanks

Answer

As long as you have a written agreement and it is not payment for real estate commission, you are entitled to receive your fee. I don't think the funds are properly shown on a HUD, it sounds like a personal contract between two individuals. You should be paid directly by the buyer.