Property finders (or property search agents) are companies and individuals representing a buyer in a property transaction. The term is more common in the

United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and ...

, but in the

United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country Continental United States, primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., ...

the situation is referred to as buyer brokerage, and in Australia it is known as buyer advocacy. Property finders specialise in sourcing and negotiating the purchase of property on behalf of the buyer. A property finder will develop an understanding of the client's requirements, desires and property goals, and then attempt to find a property which matches all of these requirements. In Britain, until the early 1990s, agents involved in a property transaction worked for the seller as

estate agent An estate agent is a person or business that arranges the selling, renting, or management of properties and other buildings. An agent that specialises in renting is often called a letting or management agent. Estate agents are mainly engaged ...

s. Now, property finders exist to represent the interests of the buyer or tenant. Today in the United States where

fiduciary A fiduciary is a person who holds a legal or ethical relationship of trust with one or more other parties (person or group of persons). Typically, a fiduciary prudently takes care of money or other assets for another person. One party, for exa ...

obligations exist, if the buyer is working with a broker other than the brokerage which represents the seller by "listing" the property for sale, he may choose to enter into a buyer brokerage agreement to be represented. (In some cases where dual agency is permitted by law, even the listing broker may represent the buyer). If the buyer does not enter into this agreement, he/she remains as a ''customer'' of the broker, who is then the sub-agent of seller's broker.

History

Property finders originated in the United States during the early 1990s and have grown to become involved in over 63% of property transactions there. In recent years, stemming primarily from the relocation industry, property finders now have a prominent involvement in property purchases and rentals across Europe.

Fees

The majority of property finders charge a

retainer fee A retainer agreement is a work-for-hire contract. It falls between a one-off contract and permanent employment, which may be full-time or part-time. Its distinguishing feature is that the client or customer pays in advance for professional wo ...

before they begin the search for a property. Users of full service estate agents in the UK can expect to pay a flat fee while, more typically in the US, a percentage of the property purchase price may be received from the seller's broker by means of an offer of compensation to cooperating brokers or it can be paid directly by the buyer. Based on US tax laws, investors may find that the cost of using a property finder is tax-deductible when purchasing an investment property. However, for the

owner-occupier Owner-occupancy or home-ownership is a form of housing tenure in which a person, called the owner-occupier, owner-occupant, or home owner, owns the home in which they live. The home can be a house, such as a single-family house, an apartment, c ...

, no tax break may exist unless the total acquisition costs versus the eventual sales price and gain can be verified if any

capital gains tax A capital gains tax (CGT) is the tax on profits realized on the sale of a non-inventory asset. The most common capital gains are realized from the sale of stocks, bonds, precious metals, real estate, and property. Not all countries impose a c ...

is due. In some cases the property finder will only charge a percentage based on what they can save with a transaction. In contrast to most US states'

common law In law, common law (also known as judicial precedent, judge-made law, or case law) is the body of law created by judges and similar quasi-judicial tribunals by virtue of being stated in written opinions."The common law is not a brooding omniprese ...

(where realtors work for and represent the interests of the seller and not the buyer -unless they enter into an agency agreement to do so- and their function is to obtain the highest price on the best terms for the seller), a property finder is working for and represents the buyer, thus creating a balance between the skills and expertise available to both parties in a transaction.

References

{{Reflist

External links

National Association of Exclusive Buyers Agents
Sales occupations Property finder

History

Fees

See also

References

External links