Posted by Natalie-VA on November 02, 2008 at 11:46:53:
Jack,
In my state, only brokers can receive payments. They can then disburse to their agents. I think there are exceptions to this if the broker agrees in writing.
Also, in my state, an agent really isn’t an active agent unless his license is hung with a broker. There’s no such think as an current agent who doesn’t have his license with a broker. That would mean he’s on inactive status and cannot practice real estate.
–Natalie
referral fees - Posted by Jack March
Posted by Jack March on October 31, 2008 at 11:47:13:
I was given a referral by a licensed sales person, not related to any brokerage. His license is current but not hung with a broker.
Can my broker pay him a referral fee?
If yes, how much, the full 25%? even tough there is no broker to split it with?
He’s unlicensed - Posted by John Merchant
Posted by John Merchant on November 03, 2008 at 17:40:37:
Depends on your state and what its rules are for a lic.REA to share commissions with an unlicensed person.
Your friend is currently UNlicensed if his RE lic. not hung.
Here in WA, our law is REA can share his commission with anybody he wishes, after he’s paid by his RE Broker.
It may be same or entirely different in your state so check beforehand.
Re: referral fees - Posted by Rich-CA
Posted by Rich-CA on October 31, 2008 at 15:17:34:
In CA the agency relationship is between Brokers ONLY. The broker will have an employment contract with his salespeople. That contract determines the “split” of any payments between broker and salesperson.
If the broker wants to do an employment agreement, then he might share the referral fee. I do not expect many brokers will be willing to do this. You might want to see what the law says about a licensed salesperson receiving a referral fee. This is determined on a state by state basis with differences between the states making this tough to call without knowing where you are.
Re: referral fees - Posted by Jack March
Posted by Jack March on October 31, 2008 at 14:48:35:
additional comment. I have been taught and told by other so-called knowledgable brokers that referral fees can only be paid from one broker to another. the other broker will distribute accordingly to his sales agent. If a sales agent is not a broker and not affiliated with a broker, he cannot be paid a referral fee directly. And even if he could, how much? Would the paying broker keep a split portion? I am an MA sales agent.