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She said that if I sell on my own, the buyer's commission isn't a factor, so I sent this to my Facebook friends and email distribution lists today:
Want $1,000?
Just send a buyer with an offer we accept by December 31, 2009 and we will GIVE YOU $1,000. The buyer has to let us know (and you, too) that you sent them and we have to accept the offer. It is that simple!
Brilliant? Stupid? Interesting? What do y'all think?
Reword it to Offer it as a closing cost and have your agent add it to the listing details. But you still can't pay it to a head hunter, only to the actual buyer.
It is illegal, and ill-advised, if the bird dog fee is not disclosed on the HUD1 and the buyer borrows to buy.
It is illegal if state laws restrict paying a bird dog fee to an unlicensed party, i.e., particularly if that party is unlicensed to represent a principal in a transaction. It is nearly impossible to find a buyer for a property without representing either the buyer or seller in some manner.
It is ill-advised to engage an illegal amateur to make representation of your property, in actively prospecting and procuring a buyer without knowing that the bird dog has training about lying to people about property disclosures and condition, exclusion of protected classes, or misrepresenting lending, inspections and repairs issues.
While a wronged buyer may not have recourse against a bird dog, they may well have recourse against you for engaging an illegal and untrained bird dog to defraud them and to misrepresent your property.
No, the agent is NOT involved in this. It is cash from my own pocket and all applicable fees will be paid according to law. If someone comes as a referral using a buyer agent, I will pay that agent the full 3%. If they come WITHOUT an agent, then my agent will handle the paperwork for her regular fee.
I'm just trying to recruit some buyers using "out of the box" creative methods.
Thanks for the knowledgeable feedback!
I have not personally come across a situation, like this. As a listing agent, I cannot pay third party referral fees to non professionals.
I cannot find anything that would preclude the homeowner from paying a third party referral fee ( private party transaction) under the circumstances, you describe, in my state. This does not mean it's legal...just that I cannot find anything that says it's not legal.
I have not personally come across a situation, like this. As a listing agent, I cannot pay third party referral fees to non professionals.
I cannot find anything that would preclude the homeowner from paying a third party referral fee ( private party transaction) under the circumstances, you describe, in my state. This does not mean it's legal...just that I cannot find anything that says it's not legal.
That's a good point MaM - and one that the OP's agent can answer. Illegal for them (the agent), but 'is it illegal' for the OP to offer incentive out of their pocket (and how should it be handled). Will be curious what the OP's listing agent says about the OP themself offering 'added incentive' and also, OP, like other's have said you should reword the facebook ad so it specifically says upon a closed transaction - if in fact your agent say's it IS legal for you, out of your pocket, to do this.
I have not personally come across a situation, like this. As a listing agent, I cannot pay third party referral fees to non professionals.
I cannot find anything that would preclude the homeowner from paying a third party referral fee ( private party transaction) under the circumstances, you describe, in my state. This does not mean it's legal...just that I cannot find anything that says it's not legal.
It's spelled out specifically in our ORS (Oregon Revised Statutes). That's interesting that Illinois doesn't spell out finder's fees.
It's spelled out specifically in our ORS (Oregon Revised Statutes). That's interesting that Illinois doesn't spell out finder's fees.
This is one thing I really love about the RE forum - helps me keep up with the laws in various states. So SF, in Oregon it specifically addresses that a homeowner cannot pay a finder fee to an unlicensed third party?
I researched the Arizona Revised Statutes (Arizona Revised Statutes) and finder's fees are not mentioned for real estate except for renting (it is allowed) and Time Shares (it is not allowed).
I did, however, find this on compensation:
32-2163 A. It is unlawful for any licensed broker in this state to employ or compensate, directly or indirectly, any person for performing any of the acts within the scope of this chapter if the person is not also a licensed broker in this state, or a salesperson licensed under the broker employing or compensating him, except that a licensed broker in this state may pay compensation to and receive compensation from a broker lawfully operating in another state.
Note that it applies to licensed brokers, not to home owners.
I have not heard back from my agent yet; I am assuming no news means no problem, but I will post anything I do hear.
This is one thing I really love about the RE forum - helps me keep up with the laws in various states. So SF, in Oregon it specifically addresses that a homeowner cannot pay a finder fee to an unlicensed third party?
Yep. Finding a buyer for a house you don't own is considered "real estate activity" in Oregon. Anyone that accepts payment for real estate activity has to be a real estate licensee.
GF, I would look up the statute that defines real estate activity in Arizona. That should give you the definition used to determine who can be paid for real estate activity.
In Oregon your friends on FB would be welcome to send you a buyer, they just can't be paid for it.
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