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Old 12-31-2014, 08:26 AM
 
Location: Los Angeles
14 posts, read 26,514 times
Reputation: 10

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I was told at the real estate practice school that giving some type of comission for referrals was not legal but the I just read about paying people for that .can someone please help me understand how that works ! Thanks guys !

Last edited by jayzoom; 12-31-2014 at 08:36 AM..
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Old 12-31-2014, 09:01 AM
 
Location: Bloomington IN
8,590 posts, read 12,290,430 times
Reputation: 24248
I think you are confusing paying a referral fee to another real estate agent versus paying a referral fee to a non-licensed person. If "A-1 real estate agent" in another state referred a buyer to me I can pay that fee as this person is licensed. If "B-former client" referred a buyer to me, I cannot pay B as B is not licensed.
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Old 12-31-2014, 09:55 AM
 
8,563 posts, read 12,339,419 times
Reputation: 16473
In many states (such as in Michigan) it is illegal to pay a referral fee to an unlicensed person. In some states (apparently in California) it is legal to do so under certain circumstances. If the person receiving the commission is licensed, that's another matter.
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Old 12-31-2014, 11:57 AM
 
Location: Sherman Oaks, CA
96 posts, read 152,142 times
Reputation: 44
Read up on RESPA
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Old 01-07-2015, 11:09 AM
 
8,563 posts, read 12,339,419 times
Reputation: 16473
Quote:
Originally Posted by sarasotareverse View Post
I think some agents are really good they only take their commission what they deserve but some of them are not good and take illegal commission.
Please cite one or two instances that you know about. I'm sure we'd all gain from your knowledge.
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Old 01-07-2015, 02:28 PM
 
8,005 posts, read 7,170,420 times
Reputation: 18165
Quote:
Originally Posted by sarasotareverse View Post
I think some agents are really good they only take their commission what they deserve but some of them are not good and take illegal commission.
What is illegal commission?
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Old 01-07-2015, 04:55 PM
 
Location: Columbia, SC
10,940 posts, read 21,916,982 times
Reputation: 10571
Quote:
Originally Posted by schoolofhardknocks View Post
Read up on RESPA
Referral fees to unlicensed agents is illegal. Referral fees to licensed agents is legal. RESPA covers kickbacks/unearned and or disproportionate marketing fees paid in exchange for business between lenders/agents/attorneys/etc.
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