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Old 09-24-2007, 12:20 PM
 
Location: Lovelock, NV - Anchorage, AK
1,197 posts, read 3,938,484 times
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Is there an average percentage that one is paid as a finder's fee or is it just a flat rate. Do most realtors pay a finder's fee?
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Old 09-24-2007, 01:10 PM
 
Location: Pinal County, Arizona
25,100 posts, read 25,457,909 times
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Quote:
Originally Posted by Tressa View Post
Is there an average percentage that one is paid as a finder's fee or is it just a flat rate. Do most realtors pay a finder's fee?
If you are talking about paying a person who is not licensed (in real estate) a fee, it is illegal in most, if not all states.

If you are asking about a referral fee between brokerages / agents (licensees), even between states, it does vary. Although, and IMO, you will most commonly see a 25% referral fee paid (of the commission earned by the person who recieved the referral)
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Old 09-24-2007, 02:55 PM
 
Location: Lovelock, NV - Anchorage, AK
1,197 posts, read 3,938,484 times
Reputation: 445
I guess it is called a referral fee, I put an agent and a buyer together on a piece property that the buyer was interested in.
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Old 09-24-2007, 03:03 PM
 
Location: Nine Mile Falls/Spokane, WA
884 posts, read 3,123,736 times
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Only if you are another licensed agent. Otherwise it's illegal to pay you a fee for this type of service.
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Old 09-24-2007, 03:31 PM
 
Location: Pinal County, Arizona
25,100 posts, read 25,457,909 times
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Quote:
Originally Posted by Tressa View Post
I guess it is called a referral fee, I put an agent and a buyer together on a piece property that the buyer was interested in.
Sounds like you do not have a real estate license. This being the case, it would be illegal for that agent, or their broker, to pay you any fee.

Sorry
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Old 09-24-2007, 08:28 PM
 
Location: Burlington VT
1,405 posts, read 3,431,452 times
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I'm not an attorney, but I do believe it's illegal for licensed Real Estate professionals in my state to pay an unlicensed person a portion of commission dollars.

There are other things which an agent could do lawfully though.

1) If you had an inactive license, which you'd not be paying MLS dues and other expenses to keep as inactive with the secretary of state's office - Then I believe a brokerage could pay you a referral fee. I know of a brokereage which facilitates and cultivates this sort of business...

2) I don't believe it's illegal for me to take you to lunch or for dinner and a show. Or to play golf, ski or to catch a concert, or any number of other things...

3) If you were, say, a plumber, babysitter, attorney or house painter - I believe I could send you lots and lots of business if there was no real or apparent conflict or interest, and if I believed you'd serve my clients or customers well. In fact, many many very successful businesses have been built on such referrals, and entirely owe thier success to these gestures.

...sorry if I strayed off the topic a bit.

David Beckett
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Old 09-24-2007, 09:34 PM
 
Location: New Mexico
627 posts, read 1,545,911 times
Reputation: 290
I pay 1% of the selling price or more ( up to half )depending on if I really want some help.
Most where I'm at pay 25% of the selling side.

Paying an unlicensed person is illegal, and not only that, if the person accepts the fee or commission, they are not subject to the laws of the real estate commission and can get jammed up with them just as a licensee could. An should they ever try to get a license in the future likely could not.

A person with an inactive license in NM cannot receive a fee or commission. Call it what you will.
All monies have to go thru the qualifying broker, then paid to their licensees thru them. A licensee cannot receive fees or commissions from anyone other than their broker.
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Old 09-24-2007, 09:38 PM
 
Location: New Mexico
627 posts, read 1,545,911 times
Reputation: 290
oh and yes. I've been posed with that. One of my sellers wrote into the listing I mailed him that if he sends me a buyer I pay him a commission.
For reasons like that, I NEVER sign anything I mail first!
I explained to him I could not pay him unless he had a license, was a broker or worked for a broker, that he should try to sell it himself first, then give it to me. He finally got off that trip and I mailed him a new, clean listing.
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Old 12-27-2008, 01:10 PM
 
1 posts, read 20,660 times
Reputation: 13
Sounds to me like finder’s fees are LEGAL in California.“A FINDER’S FEE is compensation paid for bringing two parties together, such as the introduction of a prospective buyer and a seller. The finder does not need to be licensed and, of course, can perform no services for which a license is required.” A quote from “CALIFORNIA REAL ESTATE LAW”, Huber and Tyler, J.D., 6th edition (2007), Educational Textbook Co., Inc. (Covina, CA)
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Old 12-27-2008, 02:36 PM
 
Location: Mountain Ranch, CA The heart of Calaveras County
6,365 posts, read 12,383,999 times
Reputation: 5200
Yes finders fees are legal in CA, but they have to be just that, the referer can't participate in any part of the transaction. I have paid finders fees based on my commission dollars.
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