Can a California licensed Realtor pay a finders fee to an unlicensed person?
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***Agents often offer previous clients a "referral fee" for sending them potential buyers and sellers. This is a tricky area and the latest CalBRE bulletin offers some guidance***. Link to full CalBRE Bulletin http://www.calbre.ca.gov/files/pdf/reb/rebwinter_16.pdf Show
Nội dung chính Show Illustration of Lawful vs. Unlawful “Referral Fee(s)” to an Unlicensed Person: A real estate broker asks his former client, Mr. Seller (an unlicensed person), to refer his friends or family members who are or may be in need of real estate services to him for real estate licensed services. Subsequently, Mr. Seller provides the broker with the name and number of his sister who wants to sell her home and the broker pays Mr. Seller a referral fee after he lists and sells the property. Thereafter, Mr. Seller begins to solicit all of his friends (and their friends) who need help either buying or selling real property, and the broker pays him a fee each time a referral is made. While the first referral is lawful under California law, as long as absolutely no licensed acts (e.g., solicitation, negotiation) were performed by the unlicensed person, the subsequent referrals are unlawful and violate the Real Estate Law. Since the unlicensed person (in his activities after the first referral) solicited prospective buyers and sellers of real property in exchange for compensation (referral fees in the illustration above), he performed acts requiring a real estate license under B&P Section 10131.4 Essentially, the unlicensed person (Mr. Seller) went from a casual finder who made a mere introduction to being in the business of real estate solicitation. Similarly, in the example above, the broker compensated the unlicensed person to solicit prospective real estate clients on the broker’s behalf, in violation of B&P Section 10137. Thus, in the subsequent referrals discussed above, the broker and unlicensed person have violated California’s real estate licensing laws and are not only subject to administrative discipline and/or potential monetary fines, but could also be subject to criminal penalties since unlicensed activity is a criminal act under the Real Estate Law (B&P Sections 10130, 10138, and 10139). As the example above illustrates, any compensation, referral fee, or other payment made to an unlicensed person by a real estate licensee must be done with extreme caution. While a one-time referral based upon a simple introduction of the parties by an unlicensed person may be lawful (depending on the circumstances involved, and especially where there is a “mere introduction”), a pattern of referrals may suggest an unlawful real estate solicitation business by an unlicensed person in exchange for compensation. A real estate agent doesn’t always have the time for every client who comes their way. That’s where referrals come in. When a real estate agent can’t work with a client (whether it’s a time or expertise issue), they can instead refer them to another real estate agent altogether. The real estate agent gets a finder’s fee, also known as real estate referral fees. Usually, these deals are drawn up well in advance. Over the course of your real estate career, you’ll start to develop referral contracts with others in the industry. Sometimes, a referral agent may just reach out to you unexpectedly with an offer. And it’s not always another agent — sometimes it’s a third-party system such as an online service or another broker. As long as the other party or broker is licensed, they can refer work to you. Let’s take a deeper look at everything you need to know about a real estate referral fee, including how to capture them on your own. 1. You Can Make a Lot of Money Through ReferralsOn both sides, a lot of money can be made through referrals. If you’re the referral agent, you can make money for doing virtually nothing; you just need to make sure you’re working with a partner agent you can trust. If you’re the agent being referred to, getting a lot of referrals vastly cuts down on the amount of time you need to spend sourcing your clients. But you need to have a firm referral fee agreement to avoid any confusion. As a real estate agent progresses in their career, it’s a good idea for them to already have a boilerplate referral agreement available should they run into this situation. A broker isn’t always going to give someone a lot of work, especially when they are new to the profession. There are times when you just aren’t the best person for the job, such as an out-of-state sale or a sale outside of your expertise. Eventually, you can become known as a real estate referral agent; someone who knows the best person to consult with for an agent referral. Some real estate professionals even “retire” from their career through referrals; they stop taking direct work, but they continue to give out a real estate referral whenever someone comes to them.  Would You Like To Partner With Me?I’ve helped hundreds of real estate agents, team leaders, & brokers all over the country increase their sales, online presence, and create scalable systems. I would love the opportunity to work with you. Together, we can make this year your best yet! Can you pay a referral fee to an unlicensed person in California?In California, the Bureau of Real Estate and California law permits a licensed real estate brokerage to pay a referral fee for a real estate transaction to a person not licensed by the Bureau of Real Estate, only if the person who is to get such a fee was not soliciting on behalf of the brokerage. Under what conditions is it permissible for a broker to pay a referral fee to a person who does not possess a Colorado real estate license?In Colorado, a broker may pay a referral fee to an unlicensed person when? as long as the unlicensed person does nothing that requires a real estate license. Can property agents referral fee?The short answer to this question is yes, real estate agents can pay referral fees to licensed persons. But there is one catch. However, most state laws prohibit the paying of referral fees to unlicensed persons. Federal law also prohibits this in most cases. Can a Realtor pay a referral fee in Florida?Referral fees Florida licensees are not allowed to pay a fee or compensate someone for real estate services who doesn't hold a real estate license in Florida or another state Are finder's fees legal in California?The new California law only permits the payment of finder's fees in transactions involving California based issuers, finders and investors, for transactions conducted exclusively within California.
Can I charge a finders fee?The terms of finder's fees can vary greatly, with some citing 5% to 35% of the total value of the deal being used as a benchmark. It's a staple of Fundera's business model. In many cases, the finder's fee may simply be a gift from one party to another, as no legal obligation to pay a commission exists.
Can you pay a referral fee to an unlicensed person in New York?Under NY State Law, a person may not be paid a referral fee who does not hold a real estate broker's license. An exception is an attorney licensed to practice law in the State of New York. In short, referral fees must pass from broker to broker.
Can an undocumented person get a real estate license in California?Current law requires an individual to provide proof of legal presence (proof of U.S. citizenship or legal alien status), in the United States in order to obtain a real estate license.
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