By definition, a real estate broker is one who, for compensation, finds a buyer for a property (or, in the case of a buyer’s agent, a property for sale that a buyer is interested in buying).
getting ‘commission’ while not being RE Agent - Posted by walter_IL
Posted by walter_IL on February 13, 2002 at 16:20:25:
Lets say that I got paid a finder’s fee. I have not signed any
purchase or option agreements with the seller. The investor simply
paid me $2K ‘finder’s fee’ for helping him to locate the property.
I know it’s a stretch, but what would happen if National Association
of Realtors were to find out. What is the worst case that
could happen? Is this an offense that could take me to jail?
Not the national assoc, but your state licensing department. For one offense, they will probably write you a letter telling you to stop. If you persisted, it is a criminal offense.
To date I haven’t done any real estate investing (still trying to absorb everything), but why would this be illegal? I was under the impression that a scout was someone who got paid a finders’ fee for locating property someone wanted to sell.