Real Estate Referral Fee - Need Info! (buying a house, buying)

[Christina"B"]

I need advice/information urgently!

When my husband and I contacted our realtor and began looking for homes, we mentioned that my father is a licensed real estate professional and that we wanted him to "refer" us to her and, therefore, be able to receive the referral percentage. Our Agent told us that she would not legally be able to honor the referral because he is licensed but he is not "active" (ie, not affiliated with an Agency). She said that she is not able to honor the referral because there is no Tax ID number for an individual who is not affiliated with an Agency.

Our neighbor, who is a former Agent and is also licensed but not active, claims she has referred friends and has used her SSN for the Tax ID number.

We believe our neighnor and my father are correct, not my Agent; however, we need to somehow convince our Agent that we are correct. Is there a statute or document that can support us? We want to make an offer on a home but definitely want to address this with our Agent before making any moves as we are talking about several thousand dollars here.

Please help us!

[MikeJaquish]

Originally Posted by Christina"B"

I need advice/information urgently!

When my husband and I contacted our realtor and began looking for homes, we mentioned that my father is a licensed real estate professional and that we wanted him to "refer" us to her and, therefore, be able to receive the referral percentage. Our Agent told us that she would not legally be able to honor the referral because he is licensed but he is not "active" (ie, not affiliated with an Agency). She said that she is not able to honor the referral because there is no Tax ID number for an individual who is not affiliated with an Agency.

Our neighbor, who is a former Agent and is also licensed but not active, claims she has referred friends and has used her SSN for the Tax ID number.

We believe our neighnor and my father are correct, not my Agent; however, we need to somehow convince our Agent that we are correct. Is there a statute or document that can support us? We want to make an offer on a home but definitely want to address this with our Agent before making any moves as we are talking about several thousand dollars here.

Please help us!

Let me back up here.
Your dad can collect if his license is on "Active" status whether he is affiliated with a firm or not.
What he cannot do if not working under a BIC is advertise himself in any way as an agent.

Hmmm... Might be worth a call to the commission, although they avoid stringently getting in the middle.

When expecting a referral fee, agents should ALWAYS get the paperwork in place first, prior to initiation of the transaction. Some will not give a name without the referral paperwork.



OTOH, your neighbor should lay low from the long arm of the law. Inactive and taking a fee? Badddd....



Sorry. No help, other than supporting your agent for being right:

http://www.ncrec.state.nc.us/pdf/Lic...klet/Rules.pdf

Page 17 of 32

A.0504 Active and Inactive License Status

(a) Except for licenses that have expired or that have
been canceled, revoked, suspended or surrendered, all licenses
issued by the Commission shall be designated as being
either on active status or inactive status. Th e holder of a
license on active status may engage in any activity requiring
a real estate license and may be compensated for the provision
of any lawful real estate brokerage service. Th e holder
of a license on inactive status may not engage in any activity
requiring a real estate license, including the referral for compensation
of a prospective seller, buyer, landlord or tenant
to another real estate licensee or any other party. A licensee
holding a license on inactive status must renew the license
and pay the prescribed license renewal fee in order to continue
to hold the license. Th e Commission may take disciplinary
action against a licensee holding a license on inactive
status for any violation of G.S. 93A or any rule adopted
by the Commission, including the off ense of engaging in
an activity for which a license is required while a license is
on inactive status.

[Christina"B"]

That's exactly what we thought - my Dad is eligible for the referral. He does not advertise as an Agent but keeps his license active. You mention referral paperwork - guess I should have done my homework earlier...where would one locate such paperwork?

Thank you for the info!

[MikeJaquish]

Originally Posted by Christina"B"

That's exactly what we thought - my Dad is eligible for the referral. He does not advertise as an Agent but keeps his license active. You mention referral paperwork - guess I should have done my homework earlier...where would one locate such paperwork?

Thank you for the info!

NCAR provides a referral contract with standard forms.
If your father is an agent but not a Realtor, he would have to draft his own, or ask the referral agent for the form.

But, it appears that it may be a little late for that.

[adlnc07]

I'm a bit confused - why would the father get a referral fee in this situation? It doesn't appear that he's even involved.. unless I am missing something?

[MikeJaquish]

Originally Posted by adlnc07

I'm a bit confused - why would the father get a referral fee in this situation? It doesn't appear that he's even involved.. unless I am missing something?

It's a favor to the client.

It can be a little fractious if the family member is brought in late, and those stories abound.
Agents can tell you of circumstances where family members ambush the agent late in the transaction, like the day before closing, demanding referral fees. From time to time you see the topic on the CD Real Estate forum.

Done right, the family member makes the referral, like any other agent, or at least is brought up by the client during the engagement interview and the referral is negotiated from the start, with documentation that a fee will be paid, and the amount of the fee to be paid.
No surprises. No worries.

[fixitrdu]

Why not use a different agent...one willing to loose some money to close a house? Out of curiousity, what percent of the commission are we talking here?

[dedratermi]

Your agent told you up front she wasn't willing to help you on this issue, so why didn't you find someone else? There are tons of good agents looking for work right now, it really shouldn't be hard to find one willing to accomodate your reasonable request. If you feel your agent is lying to you about this issue, why would you continue working with her on something as important as buying a house - what else is she going to be dishonest with you about? Move on!

[sally scheidemantle]

Originally Posted by Christina"B"

I need advice/information urgently!

When my husband and I contacted our realtor and began looking for homes, we mentioned that my father is a licensed real estate professional and that we wanted him to "refer" us to her and, therefore, be able to receive the referral percentage. Our Agent told us that she would not legally be able to honor the referral because he is licensed but he is not "active" (ie, not affiliated with an Agency). She said that she is not able to honor the referral because there is no Tax ID number for an individual who is not affiliated with an Agency.

Our neighbor, who is a former Agent and is also licensed but not active, claims she has referred friends and has used her SSN for the Tax ID number.

We believe our neighnor and my father are correct, not my Agent; however, we need to somehow convince our Agent that we are correct. Is there a statute or document that can support us? We want to make an offer on a home but definitely want to address this with our Agent before making any moves as we are talking about several thousand dollars here.

Please help us!

Hello,
You may want to check with DRE regarding this matter, they will be able to answer your question..
good luck!

[VickiR]

Originally Posted by sally scheidemantle

Hello,
You may want to check with DRE regarding this matter, they will be able to answer your question..
good luck!

The original question is over a year old. I hope, by now, the situation is resolved!!!

Vicki