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Chip

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Reply with quote  #1 

I have three families I know who are moving to San Diego.  I want to refer them to an agent and I was wondering if it's normal to get a referral fee and what would I expect?  What are the legal requirements since I'm not an agent myself? 

Hugo

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Reply with quote  #2 
Unfortunately, since you are not an agent, it's my understanding that the legal requirement is that you not be paid a referral fee. C.A.R. seems pretty strict on this one. An agent can't pay a non-agent for referrals.

Sorry


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SoCalStan

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Reply with quote  #3 

Do these Families really need to work with an Agent? 

Is the RE Agent REALLY going to do anything more for them than a Good Investor would do? 

 

If these Families are willing to not limit their search to the MLS, and if they might want to have aditional flexibility in Price or Terms, You might want to ask if there are any Good Reputable Investors who might be willing to work with Families to find them their SoCal Home.   I'd be willing to bet that a Good Investor would be more than willing to pas a Referral Fee to You.   

 

Feel Free to email me, and we can talk. 

 

~ Stan ~


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ISamson

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Reply with quote  #4 

Do you recall your source of information on this one ?

 

"It's my understanding"  often means  "I heard it somewhere but  . . . "

 

The last I read  ( years ago,  could be different now ),  a Realtor can pay or receive a referral fee with their Broker's permission.

 

 

------------------------------------------------------------------------

 

 

Unfortunately, since you are not an agent, it's my understanding that the legal requirement is that you not be paid a referral fee. C.A.R. seems pretty strict on this one. An agent can't pay a non-agent for referrals.

Sorry

 

 

Kawika_CA

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Reply with quote  #5 
I think Samson may be correct. I read in the civil code that a Broker can pay a finder's fee to anyone. Whether the agent can via the Broker is not clear to me.

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AlexL

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Reply with quote  #6 

As a reltor, the broker can pay or receive referral fees legally, including those across the state lines.

 

Funny enough, even though in most states covered by the same license, the mortgage brokers can not receive or give referral fees, it'll be considered a RESPA violation.

 

Just goes to show you that the lobby works in this country: NAR (Nat'l Association of Realtors) has one of the strongest lobbies in DC, whereas all mortgage brokers do is get together for beer and play golf tournaments twice a year.

 

 

RobertCampbell

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Reply with quote  #7 

 

Kawika,

 

I read your "Speaking Do's and Don'ts" on your website.

 

If you don't mind me asking, what's your interest there?  Are you a speaker? A speaker coach?

 

From your research, what's the best book available on speaking?

 

Thank you.  I'm always looking to improve my speaking, especially before I put on my "show" for the SDCIA crowd on June 14, 2006.

 

Robert Campbell

ISamson

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Reply with quote  #8 

Below are the resources I specifically studied to get my education side of speaking ready.

 

From another front,  I have been to literally over a hundred seminars where I carefully studied what the speakers were actaully doing and the effects each tactic had.

 

If you go through the Carnegie stuff,  he will tell you to do the bathroom mirror technique as well.

 

               Dale Carnegie

How To Win Friends And Influence People

How To Stop Worrying And Start Living

How to Develop Self-Confidence and Influence People by Public Speaking

The Quick and Easy Way to Effective Speaking

 

The Art of Public Speaking by Stephen Lucas

 

 

 

 

 

Chip

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Reply with quote  #9 

Off the top of my head from a lawyer I just casually talked to:

 

Referrals from Brokers (and Lawyers) are legal as long as:

 

(And don't quote me!)

 

  • They are in no way associated with the transaction.  I.E.- Not in the contracts, part of escrow, paid by buyer/seller, etc.
  • They are reasonable amounts.  1% of 1% of the broker's net profit from the transaction.  That's $2 on a $20,000 commission.  Woohoo!

It amounts to a cordial tip as opposed to a commission split.

 

Where do I sign up? 

LindaTx

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Reply with quote  #10 

There is many ways to be rewarded without a fee.

I give out a lot of referrals, and do not expect a dime from it. But What I do want, is if someone they know needs help in Austin Texas, they will contact me with their lead knowing I will give the best service I can to that client or friend.

 

Rewards are not always in Money.

Its building trust and friendships and building your network.

 

You get back what you give out freely.

 

LindaTx


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applekazoo

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Reply with quote  #11 
This may be helpful from the CAR Website:

Question:

I am a REALTOR® and I want to give a gift to a friend for referring a client to me. Is that legal?

Answer:

The answer depends on several factors. First, what type of property is involved in the resulting transaction? Second, is your “friend” a real estate licensee, an unlicensed person, or an employee of a company providing special services such as title insurance or pest control work?


There is a legal memorandum, Referral Fee Chart, that illustrates when you can or cannot give a “gift” (any amount of money or any other type of consideration). In addition, there is a detailed legal memorandum on the same topic, Referral Arrangements.

If you deal with residential one-to-four properties and your friend is a non-licensee unaffiliated with any type of special service company, then federal law--RESPA--generally forbids the giving of a referral fee (any type of gift) to your friend. The term “generally” is used because RESPA does not forbid a referral fee if the buyer purchases the property using all cash or a loan from an individual who doesn’t typically loan money to borrrowers.

If you deal with residential five or more properties or commercial or industrial or agricultural property, then you may give a referral fee to a non-licensee who is not affiliated with a provider of special services.


Finally, the same rules apply regardless of what you call the “gift”: a referral fee or a finder’s fee.
AlexL

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Reply with quote  #12 

This subject is laughable. In the whole world people give each other gifts for sending them business, referrals, for being good customers, for being good vendors, for doing each other favors, etc.etc.etc.etc. BECAUSE THEY SINCERELY WANT TO THANK THE OTHER PERSON!

 

ONLY IN AMERICA you have to clear with your lawyer if you can give somebody a thank-you gift to make sure you are in compliance..

 

ONLY IN AMERICA you can NOT and must NOT ever say "I am sorry" in business for making an honest mistake because there is always an ambulance chaser who will consider it your admittance of guilt and therefore admittance of liability...

 

 

Can you come up with more examples of this liberal BS? I bet you can.

 

OK, I'm done with my Sunday Rant (my version of "Deep Thoughts"), time for the BBQ.

 

 

dansimo

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Reply with quote  #13 
HERE, HERE!! Well said Alex.

how was your bbq?



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niravmd

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Reply with quote  #14 
i've recieved emails from agents saying they give out $1k referal fees. don't know if its illegal but i can fwd you the email if you want. maybe you could ask her.

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