I am a loan officer and I am in the process of restoring my real estate license. Can I get a referral fee and be the loan agent for that client at the same time? The only problem I`ve seen is that FHA doesn`t allow you to be a loan agent and the buyer`s broker in the same transaction. Happy to help you! Any licensed real estate professional can get a referral as long as they are properly housed in a broker. If you are part of the brokerage, you can get this recommendation. Many agents run a pure reference business, which reduces their return with each completed transaction, but also reduces their workload! In California, the Bureau of Real Estate and California law allow a licensed real estate agent to pay brokerage fees for a real estate transaction to a person who is not authorized by the Bureau of Real Estate, only if the person who is to receive such fees has not advertised on behalf of the broker. In short, these “intermediation fees” only apply if the unlicensed person is limited solely to the introduction of a seller, buyer, or both to a licensee. The caveat is that the “researcher” is not involved in the negotiations on the real estate transaction. – A 25% transfer on this gross commission would be $3,740. Hello, I am a licensed agent in VIRGINIA. I referred an agent to my parents who live in another part of the state. Now that they use the recommended agent to sell, they want me to share my referral fee from that agent with them. Is it legal to give them a reduction in my referral fee? In 1995, the California Attorney General issued a statement that a real estate agent can only pay a referral fee to an unauthorized person in the Department of Real Estate (now the Real Estate Bureau) if the referring person did not make the introduction on behalf of the compensatory broker. (78 op.

cit. Callus. Genesis 71). Generally, referral fees are a lump sum or percentage of the fees that the broker receives for a transaction made based on the intermediary`s recommendation. Only solid profitability controls the amount of fees a broker, agent or principal should pay an intermediary for a prospect. Can the recommended buyer be asked to pay a portion of the referral fee, called the acquisition fee? Is it not true that the officer who received the recommendation is solely responsible for paying his commission`s referral fee based on the conclusion? Why should the buyer pay for it? Could the manufacturer try to factor these costs into the list price if they receive the recommendation? A balancing act in any case. If I were in your shoes, I would start by talking directly to my client, explaining how the referral process works and why I don`t feel comfortable making such a recommendation. If this became a decisive problem, I wouldn`t be willing to lose the list about it, but I would go to the mat before stopping. Good luck! If I change companies before signing the registration agreement, will the contract remain with my former company or will this agent accompany me? It depends entirely on the language of your contract, but in general, yes, the contract will remain in place even if you change brokerage.

Usually, these reference contracts are between brokers, not between agents, so if there is no clause describing your situation, I would not expect her to come with you. There is no legal or ethical rule for withdrawing a customer recommendation. If you had some kind of exclusive buyer/broker deal, that would be another story, but unfortunately, without one of them, you`re out of luck here. One thing I`ve learned over the years is to stay in touch with the referring agent about the progress of my work with the clients who have recommended them. This keeps everyone informed and helps avoid surprises like this. Thanks for the comment. In fact, the recommendation occurs when there is a signed baseline agreement. Without this agreement, there is no obligation to make a recommendation. With my current broker, there is a reference contract with an outside broker to support the sale of my sister-in-law`s house. I personally chose the reference company and the specific agent I wanted to represent.

As an “off-grid” company, I had to negotiate the agreement with the other agent orally and provide the information to our referral service. and they followed. Good question. Yes, you can get recommendations for rental commissions, but not all markets are set up for rental commissions, and sometimes these referral fees are quite low. Keep in mind that your references must go through your broker. Under the table, the references are a no-no for most States. – Many brokers have departments that focus on references or “relos” (moves). Often, these departments work a little differently from the rest of the company and certainly a little more aggressively than the average agent. Once a buyer or seller contacts them and asks to be paired with an agent, Agent Pronto contacts nearby agents who have agreed to receive referrals and offers them the referral for a fee between 25% and 35%, depending on the buyer`s budget or the estimated price of the seller`s home. Once the client and the recommended agent have been presented, a reference agreement must be signed.

This will legally bind and confirm the sponsorship fee, usually 25%, and all other terms of the agreement. I guess that`s an option, but the details largely depend on the local regulations of your specific organization, as well as the rules of the state of Pennsylvania. Honestly, it seems to be more effort than necessary for me. If you want to work as an agent, referent or other, make a plan to at least cover your costs and keep your license active. Good questions. I think the move to a pure reference company makes a lot of sense when transitioning to retirement. If I were you, I would definitely buy this option from different brokers. I have read about brokers offering progressive caps to referral agents so that they can actually reduce their annual cap over time as they produce. I`d also suggest exploring the idea of joining a team that would take you on as a referral agent – this could be a way to reduce your costs even further. 1) How do you maintain your license when acting as a reference agent? Hi, I am a real estate agent in AZ and I showed houses to a commercial real estate agent who asked me if I was making any recommendations. I advised him to send me the referral agreement, and yes, we do.

The transaction was completed and the buyer sent the recommendation 3 days after closing. What must I do? My broker said we didn`t have anything in writing, so I don`t have to. Nothing was agreed. They did not comment at closing and told my broker that they still pay referrals after a deal was closed. Good question, thank you for your comment. This is a rather nuanced situation, but I can tell you that, legally, no transfer is due unless a contract has been signed for a transfer. That being said, there are many handshake deals that take place in the real estate industry. a kind of code between brokers. I agree that it looks like a sticky counter, but in the end, I would put it in the hands of your agent.

He must weigh whether the 25% commission is worth the headache that may result from having to deal with the neighbor on the street. From a legal point of view, he doesn`t owe him anything, but this could be the kind of situation in which brokers have to get involved to sort everything out. I have a few friends I`ve known for 20 years. I will list their house. At the second meeting, they told me that the owner`s sister is a broker in another state and wants to receive a referral fee. Since these are courtesy recommendation fees, I suggested 20% vs. 25% and she disagreed. Wondering what`s common? 3. Lead generation for owners: Other developers in our network own properties in MX and have asked us to help them create marketing messages for them – think Google ads, microsites and peer-to-peer referral programs, etc. What do you think of legality and best practices if we offered/billed the following for lots we don`t own directly? and in part (minority or majority) have a share? (Remember that we are not authorized in the United States) – Marketing Creative Development and Strategy/Consulting Fees – Lead Generation / Cost Per Lead? – Search tool fee when closing an excellent article.

Let`s say I`m a licensed agent in MA who is owned by a brokerage. Can I refer prospects/customers to agents in another state and continue to receive referrals even if I am not authorized in those states? Thank you. I live and work in real estate here in Australia. I have a few clients who will be moving to the U.S. and buying real estate over the next few months. Is there a possible and legal way for me to get a referral? Thank you Ed I have a question. Can I get 2 referral fees if I give a real estate agent a person who wants to sell their home and then turn around and buy another home? There will be 2 transactions. In other words, would I receive a referral fee for selling the home and then a referral fee for buying another home that the same customer is buying? While licensed attorneys in California may negotiate a real estate transaction under Section 10133 of the California Business & Professions Code, under Bureau of Real Estate regulations, a real estate agent cannot share a commission with such a lawyer if they do not hold a real estate license. In such a situation, the licensed California attorney drafts an offer from his buyer to receive a percentage of the listing broker`s commission if the buyer uses such a real estate commission to pay his attorney. .