This is the Finders Fees paragraph:
“4. FINDERS FEES: The Seller acknowledges that the Brokerage may be receiving a finder’s fee, reward and/or referral incentive, and the Seller consents to any such benefit being received and retained by the Brokerage in addition to the Commission as described above.”
Review
Set out below and marked in bold and italics are those words that are inserted by me to assist in the review. They are not set out in the clause itself. Let’s look at that paragraph in a little more detail:
4. FINDERS FEES:
Acknowledgement of Payment
The Seller acknowledges that the Brokerage may be receiving a
- finder’s fee,
- reward and/or
- referral incentive, and
Consent to Retention
the Seller consents to any such benefit being received and retained by the Brokerage in addition to the Commission as described above.
COMMENT
The interesting aspect here is the failure to mention the obligation to disclose. That’s a common law fiduciary duty and falls under the duty of accounting. The agent has to tell the principal. But now, whose money is it? Does the agent keep it or pass it on? Originally, all such payments would have to be passed on. That changed, however, disclosure is still required.
Nevertheless, this clause, without any disclosure points the money in the direction of the agent.
Brian Madigan LL.B., Broker