Posted by Pranav on September 28, 2010 at 13:52:17:
Just to add - We are not brokers or agents.
paying referral fees - Posted by Pranav
Posted by Pranav on September 28, 2010 at 11:33:59:
I am starting a LLC with some of my friends to buy/sell property (mostly in the US)
I am starting a referral scheme in which our LLC will pay some referral fees to people
who refer property sellers to us and it results in a completed purchase by us.
Are we allowed to pay referral fees to normal people i.e those who are not licenced real estate agents/brokers etc.
an example is a person referring his neighbour to us and we completing a property purchase from the neighbour…
No problem for payor - Posted by John Merchant
Posted by John Merchant on September 30, 2010 at 14:10:20:
Payee might have a licensing issue, depending on what he/she promises or delivers but payor would almost never get in trouble paying for a service or knowledge.
If it’s just info, then not usually a problem for payor or payee and that’s commonly referred to as a “bird-dog fee”, but if payee’s services include any kind of other service on RE then an agent’s or broker’s license might be required.
Re: paying referral fees - Posted by J weeks
Posted by J weeks on September 29, 2010 at 09:26:50:
Yes, it needs to be in your by laws and structure of the LLC…seek legal advise on details. I do have 3 properties in Indiana that are for sale. Each cash flow and are in good shape if you are interested, avoid the fees and call me 702-759-2709. The properties are all in South Bend.