referral fees - Posted by Lou

Posted by William Bronchick on June 21, 2004 at 09:36:01:

You can PAY anyone you want any kind of referral fee or finder’s fee. Receiving a finder’s fee requires a real estate license in some states. A finder’s fee is a fee contingent upon the sale of the property involving the person you referred. A referral fee is simply payment for a lead, whether or not it closes.

The state licensing authority in your state is not likely to put a magnifying glass on this type of activity unless you start holding yourself out as a real estate broker. However, if the person you referred the deal to does not pay, you cannot sue him for the referral or finder’s fee. You simply tell others that he is a RAT.

referral fees - Posted by Lou

Posted by Lou on June 20, 2004 at 19:04:03:

Can I get in trouble for paying bird dog fee’s. I was told by a real estate broker that you are not allowed to pay or recieve money for finding property period unless you are an agent. I knew about receiving money but I did not know about paying.
I also asked him about having an employee find properties and sell them exclusively for my company and he said they still need to be licensed. How can I research the laws for my state?
I know it only takes one p’ed off agent to get me in a world of trouble and I want to know the facts not hear say.

Thanks