Many agreements are used in real estate transactions. Below we explain what these mean for both buyer, seller and the broker

Fund Raising Agreement or Finder's Fee Agreement

A finder's fee (also known as "referral income" or "referral fee") is a commission paid to an marketing agent or intermediary of a transaction. The finder's fee is rewarded because the marketing agent discovered the deal and brought it to the attention of interested parties. The presumption is that without the agent the parties never would have found the deal, and the facilitator thus warrants compensation.

Depending on the circumstance in which the deal is established or completed, the finder's fee can be paid by either the transaction's buyer or seller.

POF - Proof of Funds

Proof of funds (POF) refers to a document that demonstrates a person or entity has the ability and funds available for a specific transaction. Proof of funds usually comes in the form of a bank, security, or custody statement. The purpose of the proof of funds document is to ensure that the funds needed to execute the transaction fully are accessible and legitimate.

LOI - Letter of Intent

A letter of intent (LOI) is a document declaring the preliminary commitment of one party to do business with another. The letter outlines the chief terms of a prospective deal. Commonly used in major business transactions, LOIs are similar in content to term sheets. One major difference between the two, though, is that LOIs are presented in letter formats, while term sheets are listicle in nature.

Understanding Letters of Intent (LOI)

LOIs are useful when two parties are initially brought together to hammer out the broad strokes of a deal before the finer points of a transaction are resolved. LOIs often include provisions stating that a deal may only go through if financing has been secured by one or both parties, or that a deal may be squashed if papers are not signed by a certain date.

Important! Since LOIs typically discuss potential points of deals that have yet to be cemented, they are almost universally intended to be non-binding.

Purpose of LOIs

Letters of intent may be used by different parties for many purposes. Parties can use a LOI to outline some of the basic, fundamental terms of an agreement before they negotiate and finalize all the fine points and details.

Overall, LOIs aim to achieve the following:

Clarify which key points of a deal must be negotiated.

Protect all parties involved in the deal.

Announce the nature of the deal, such as a joint venture or a merger between two companies.

NDA - Non-Disclosure Agreement

A non-disclosure agreement is a legally binding contract that establishes a confidential relationship. The party or parties signing the agreement agree that sensitive information they may obtain will not be made available to any others

NDAs are used to keep valuable ideas pertaining to new businesses, inventions, intellectual property, or proprietary processes from reaching the public or competitors

Non-disclosure agreements are common for businesses entering into negotiations with other businesses. They allow the parties to share sensitive information without fear that it will end up in the hands of competitors. In this case, it may be called a mutual non-disclosure agreement.

NDAs are also commonly used before discussions between a company seeking funding and potential investors. In such cases, the NDA is meant to prevent competitors from obtaining its trade secrets or business plans.

An NDA acknowledges a confidential relationship between two or more parties and protects the information they share from disclosure to outsiders.

The NDA is common before discussions between businesses about potential joint ventures.

An NDA may also be referred to as a confidentiality agreement.

An NDA is a legally binding agreement. A violation can lead to legal penalties

A non-disclosure agreement (NDA) is a particular type of confidentiality agreement.

International Property Commission Agreement

A international property commission agreement is a document in which a property owner contracts with a broker to find a buyer on the international market for the owner's property. The owner signs the property commission agreement to give a broker the authority to act as the owner's sales agent in the sale of the owner's property. The owner will agree to pay a commission to the broker.

There are three types of International Property Commission Agreements: 

  1. open listing
  2. exclusive-agency listing 
  3. exclusive-right-to-sell listing

A property commission agreement authorizes the broker to represent the seller / owner and the owners property to third parties, including securing and submitting offers for the property.

Buyer Registration

Tradek Properties want the best for both buyer, seller and us as broker. We try to avoid possible Procuring Cause conflicts about who is to receive commission or not when there might be several brokers, sellers, agencies promoting same real estate. A simple Buyer Registration is best way to make all things clear and all parties benefit having something written before going into a deal in real estate transactions. At Tradek Properties we will here explain this in a simple way.

Our Buyer Registration document is simply a notification about a buyer have contacted the Agent and now interested in a property, it is showing that you, the buyer have agreed to let us search you a property, working for your best of interest. We dont charge you, we dont claim anything from you. This is a simple note that we, as agent, have been in touch with you, the buyer, on this date. We will use this with sellers of properties, that sometimes can have several agents selling same property. The buying agreement will not force you buyer into anything. But instead it will protect us, the agent that we can proof to a seller, owner of a property or even another listing agency that we have been working with you on this property deal. 

So this Buyers Registration will help us, the agent, to proof that we will have the legal right to receive commission once the property is sold to you. On the Procuring Cause page we have explained more about these conflict cases what it means and how to avoid them.

Different countries have differences in payment of the commission: Is seller or buyer charged for commission?

These values are only as a references and is subject to vary depending on the property and market situation


Seller pays 5% and Buyer pays 0%


Seller pays 2% and Buyer pays 3%


Seller pays 0,5% and Buyer pays 3%


Seller pays 3% and Buyer pays 3%  


Seller pays 3-8% and Buyer pays 0%  


Seller pays 5% and Buyer pays 5%


Seller pays 5% and Buyer pays 0%


Seller pays 8% and Buyer pays 0%


Seller pays 0% and Buyer pays 6%


Seller pays 2% and Buyer pays 2%


Seller pays 5% and Buyer pays 0%


Seller pays 7% and Buyer pays 7%  


Seller pays 5% and Buyer pays 0%


Seller pays 6% and Buyer pays 0%  


Seller pays 2% and Buyer pays 3%


Seller pays 5% and Buyer pays 0%  


Seller pays 1% and Buyer pays 3%  


Seller pays 6% and Buyer pays 0%


Seller pays 2% and Buyer pays 0%  


Seller pays 5% and Buyer pays 0%


Seller pays 5% and Buyer pays 0%  


Seller pays 3% and Buyer pays 3%  


Seller pays 2% and Buyer pays 2% 


Seller pays 3% and Buyer pays 3%


Seller pays 6% and Buyer pays 0%