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Old 06-26-2008, 09:13 AM
 
4 posts, read 20,787 times
Reputation: 13

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Good morning!

I have a situation in which a Seller client of my company who is a licensed Real Estate broker wants a referral fee for the properties we have listed for them. The Seller said they believe it is a law that we have to pay them a referral and I'm trying to find out if this is true. I have searched the internet and the thing I have found seem to indicate that as long as the referral fee is paid to a licensed broker, they don't care and it's between the company and the broker. Does anyone have anything to add to this or can you shed some more light on the subject?

Thanks!

Angel1of4
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Old 06-26-2008, 10:01 AM
 
Location: Cary and Wilmington, NC
217 posts, read 1,117,634 times
Reputation: 107
Are you an agent? I am very familiar with agents/referral fees but I'm not sure I understand the situation. I'm gathering you are an agent and you have listed some properties for some clients who also happen to be licensed agents? You would have to agree to pay them a referral fee. It sounds as if you don't agree to pay the referral fee then they would probably pull the listings from you (I'm guessing) and have someone list them who will pay the referral fee. It's my understanding you have to be a licensed agent to get or pay referral fees.
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Old 06-27-2008, 06:38 AM
 
4 posts, read 20,787 times
Reputation: 13
Thank you for replying. No, they won't pull the listings from us but they believe that we are required by law to pay them a referral fee. It's a little confusing to me too but I think my question is, if you list property for a licensed broker are you required by law to pay them a referral fee?

Thanks again for your help!

Angel1of4
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Old 06-27-2008, 07:42 AM
 
Location: Cary and Wilmington, NC
217 posts, read 1,117,634 times
Reputation: 107
No, it is my understanding you are in no way obligated to pay them a referral fee. I would contact your local Board of Realtors to verify. This person should have made it clear he/she expected a referral fee before the properties were listed. There must be an agreement for referral fees to work. There is no law that requires them (that I'm aware of).
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Old 06-27-2008, 07:47 AM
 
Location: Pa
35 posts, read 146,516 times
Reputation: 19
Oyster07 is correct, I came across this same situation a few months ago. You are not required to pay the referral fee unless you both agreed to the fee prior to taking the listings. With that said....it also should be in writing that you both agreed to the referral fee because the fee itself should be agreed upon. You are not required by law to pay it without agreed to it first. Good luck!! ~ Gina
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Old 06-28-2008, 07:02 AM
 
4 posts, read 20,787 times
Reputation: 13
Thanks, Oyster07 and ginasellshomes! That's the information I am looking for.
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Old 06-28-2008, 03:32 PM
 
Location: Morehead City, NC
1,681 posts, read 6,029,802 times
Reputation: 1277
I had a similiar situation recently too.
Nothing is automatic-Everything must be mutually agreed upon and in writing.
Bill
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