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A Finder's Fee Agreement sets out how much you'll pay someone who connects you with a valuable business opportunity or contact. Common in Australian real estate, recruitment, and business deals, it spells out the exact reward for successfully introducing buyers to sellers, investors to startups, or employers to job candidates.

Under Australian contract law, these agreements need clear terms about when the fee becomes payable and what counts as a successful introduction. Most specify a percentage of the deal value or a fixed amount, typically ranging from 2-5% in property deals or one month's salary in recruitment. Having everything in writing helps prevent disputes and ensures both parties understand their obligations.

Use a Finder's Fee Agreement when someone helps connect you with valuable business opportunities in Australia. This includes property agents finding potential buyers, business brokers introducing investors, or recruiters locating job candidates. Getting the agreement in place before any introductions happen protects both parties and sets clear expectations about compensation.

The agreement becomes especially important for high-value transactions or when working with multiple intermediaries. It helps avoid confusion about who deserves credit for an introduction and prevents disputes over commission payments. Many Australian businesses use these agreements during mergers and acquisitions, commercial property deals, and capital raising activities.

• Fixed Fee Agreements: Set a specific dollar amount for successful introductions, common in simple property or business referrals
• Percentage-Based Agreements: Calculate fees as a portion of the final transaction value, typically used in larger deals
• Performance-Tiered Agreements: Offer different rates based on deal size or speed of completion
• Industry-Specific Agreements: Tailored for real estate (following state regulations), recruitment (based on annual salary), or business brokerage
• Exclusive vs Non-Exclusive: Define if the finder has sole rights to introduce potential opportunities during the agreement period

• Business Owners: Pay finder's fees for valuable introductions to investors, buyers, or strategic partners
• Professional Intermediaries: Business brokers, real estate agents, and corporate advisors who connect parties for a fee
• Legal Counsel: Draft and review agreements to ensure compliance with Australian regulations and protect client interests
• Investment Firms: Use these agreements when seeking acquisition targets or investment opportunities
• Recruitment Agencies: Formalize compensation terms for successful candidate placements with employers
• Corporate Finance Advisors: Structure agreements for mergers, acquisitions, and capital raising activities

• Core Details: Gather full legal names and contact information for all parties involved in the introduction arrangement
• Fee Structure: Decide on fixed amount or percentage-based compensation, including any performance tiers or milestones
• Scope Definition: Clearly outline what constitutes a successful introduction and when the fee becomes payable
• Time Limits: Set clear deadlines for introductions and payment obligations
• Payment Terms: Define payment method, timing, and any conditions that must be met
• Exclusivity Terms: Determine if the finder has exclusive rights during the agreement period
• Documentation: Plan how introductions will be recorded and verified

• Party Details: Full legal names, addresses, and ABNs of both finder and client
• Services Description: Precise definition of what constitutes a qualifying introduction
• Compensation Terms: Clear fee structure, payment timing, and any conditions for earning the fee
• Duration Clause: Agreement start date and end date or termination conditions
• Confidentiality: Terms protecting sensitive business information shared during introductions
• Governing Law: Specification that Australian law applies and which state's jurisdiction
• Dispute Resolution: Process for handling disagreements about introductions or payments
• Execution Block: Dated signatures of authorized representatives from both parties

A Finder's Fee Agreement differs significantly from a Commission Agreement in several key aspects, though both involve payment for business opportunities. Understanding these differences helps you choose the right agreement for your situation.

• Payment Structure: Finder's fees are typically one-time payments for specific introductions, while commission agreements usually involve ongoing payments based on sales or performance
• Relationship Duration: Finder's agreements end once the introduction is made and fee paid, whereas commission agreements often establish longer-term business relationships
• Scope of Services: Finders simply make introductions without involvement in negotiations or deals, while commission agents actively participate in closing sales or transactions
• Legal Obligations: Finders have minimal ongoing responsibilities after the introduction, but commission agents usually have continuing duties to represent and service clients
• Regulatory Requirements: Under Australian law, commission agents often need specific licenses or registrations, while finders typically don't require special credentials