Quick Legal Question
In order to get a referral fee from another office do I need to have a brokers license or just a real estate license. Currently I have an active license and I want to send referrals to another office- can I be compensated. I have asked numerous agents and the general response is that I only need to be a licensed real estate agent. Please advise.
While your CA RE license LETS you get paid by the other Broker, that's only half of it.
You want written agreement with the other agent, before you give him/her any info, that you will get 1/3, 1/2 (or whatever percentage you've agreed to), at closing, from escrow...so you NEVER just trust the other agent to do "the right thing".
And remember the other Broker has to agree as it's the Broker's money, not the agents, and the Broker owns the business...and of course your own Broker is involved, as you can't take any RE commission without it going through your broker.
Also, I've seen it happen that the referring agent got half of the NET commission check written to the listing agent, and that wasn't the deal.
So write it into your agreement that you're going to get 1/2 of the GROSS commission, etc., and make sure that's what escrow sees and uses.
thank you
JohnMerchant (or anyone else knowledgable???) -
Any idea of what the "going rate" is for referrals? I know, "what the market will bear" - but any ballpark ideas?
I'm not a realtor, and no, I'm not looking to do any of this, but I was curious as to what a solid referral is worth on the open REA market....
Just curious,
Jeff
Your local board should have a referral form established. I can send you a copy of NC referral form, if you like.
The referrals are usually orchestrated between Brokers of the different firms. The Referring Broker upon completed transaction will receive the referral bount, and then divide with salesperson in typical broker /salesperson split.
Typically referral is 25% but it is negotioable. In a sellers market, almost no one wants your buyer referrals.