Agents can’t accept referral fee’s correct?
I was wondering the same thing, can I offer a real estate agent an incentive for finding me a good deal.
Actually a agent can’t legally pay a referral fee. They can accept referral fees. In a sense you are hiring them as your buyer’s agent and it doesn’t matter if they are compensated by the seller or the buyer. You just want to make sure it shows up on the HUD-1 and it goes through their broker.
Often, your realtor can bring you a deal that is not on the MLS. In these cases, just write the realtor a check directly. I have done this many times.
Mike
agents must receive compensation through their broker. The broker gets a “split” so in order for an agent to work this way the work either needs to be “easy” and/or the compensation pretty good.
that depends on the state. oregon they changed the manes. Agents are brokers then there are principle brokers.
But brokers can be independent od a principle broker if seasoned. newbies have to be under for 3 years then can go on their own.
Referral fees are ok if done before the deal goes through. Its Kickbacks… like percentages… or other things done after the deal goes through that is illegal.
So someone says here’s my friend… They can do something small as a thankyou. Same with if they find something. But it has to be before so its not a kickback from the deal.
If they bring you a deal and they are representing you as your agent increase their commission by 1% as appreceation.