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Referrals in a Different Way

By
Services for Real Estate Pros with Ezra International Realty

This afternoon a gentleman walked into my brokerage looking for the an agent. My assistant approached the gentleman to greet him when he said that he had some leads and he was looking for an agent to work with that will pay him for giving the leads.

Right when he said that she sensed something fishy and wouldn't let him talk to me. He asked her three times if she was licensed. She took him into the conference room to get a little more information on what he was looking for. He said that he had people looking to buy and friends looking to sell and that he was looking for someone to work with him that will pay him his cut for finding the leads. Her first instinct was to ask if he was looking for a referral and if he was licensed. In fact he was not licensed and would not say how much of a cut he was looking for.

She came into my office and let me know who he was and what he was looking for. I greeted the gentleman and told him that I could not legally pay him a commission because he was not licensed. There is really one legal way to handle what he is looking to do. He would need to have an agreement between him and the buyer where the licensed agent gives up part of their commission to be paid to the buyer at closing. Once they close the buyer can pay the gentleman what they agreed upon. If this gentleman is legitimate he'll have a tough time finding an agent who is willing to give up their part of the commission. The best thing for him to do would be for him to get his license so he can handle it himself, after-all he said his leads were a week old.

I thanked the gentleman for coming in and wished him luck in what he was trying to accomplish. These are desperate times and this gentleman is either a con man or someone from the state looking for agents who do this to stop these illegal transactions.

Bob & Carolin Benjamin
Benjamin Realty LLC - Gold Canyon, AZ
East Phoenix Arizona Homes

Might be someone just testing to see what you would do -- never know when someone is coming about doing that.

Jul 07, 2010 05:52 PM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

David, Thankfully he did not find that person in you. There are many agents who do pay clients and others out of escrow … not disclosed on a HUD. How was it that the person sought you out anyway??? (LOL) - Just Kidding ... I know he did not ask for you.

Jul 07, 2010 06:33 PM
Elena Walthour
London Properties - Fresno, CA

Scary. Thank you for sharing.  Reminds us to stop, look and listen.

Jul 07, 2010 07:03 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

It sounds like you handled this well as did your assistant who did a nice job of screening for you.

Jul 07, 2010 07:23 PM
FN LN
Toronto, ON

In Ontario, real estate brokerages can pay referral fees to other real estate brokerages.  The receiving brokerage is then responsible for paying the agreed upon portion of the referral fee to the relevant sales representative or broker that is registered with the brokerage.

Jul 07, 2010 08:36 PM
Mike Mayer
Mike Mayer, Broker/Owner - i List For Less Realty, LLC - Lafayette, LA

Had to be a) desperate, b) a scam artist, or c) a tester.

Jul 07, 2010 09:40 PM
Lane Midgett
1776 Real Estate Group Richmond, VA Local Expert - Richmond, VA

State? More like fed. Nice quick feature for you.

Jul 07, 2010 10:40 PM
Betsy Schuman Dodek
Washington Fine Properties - Washington DC Area Real Estate - Potomac, MD
SearchPotomacHomes.com

My first clue is that he walked in off the street looking for an agent??? Real licensees looking to earn fees usually refer to an agent they know.

Jul 07, 2010 11:56 PM
Sonny Landau
St Louis Home Improvement and Painting Companies - Saint Louis, MO

There is no question that he is from a regulatory body.

He might also have been a total con who once you had eaten the worm would have asked for

upfront money! (what a fool to thiink thqt you would have up fronted money!)

 

Keep a smile on your face and be thankful that you had good sense!

 

St. Louis Painter

Jul 08, 2010 12:23 AM
Pam Turner, REALTOR®, e-PRO®, SFR
Century 21 Belk Realtors Dalton GA - Dalton, GA

That's almost funny -- maybe a creative (desperate) way to make a buck these days!

Jul 08, 2010 12:39 AM
Morgan Evans
Douglas Elliman Real Estate - Manhattan, NY
LICENSED REAL ESTATE SALESPERSON

These situations always come up from time to time, not much you can do unless you want to put yourself in a situation to get into big trouble.

Jul 08, 2010 01:21 AM
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

David, in my State referral fees to non-licensed people are illegal. I've received several calls in the past where people said they were acting an an intermediary putting two a buyer and a seller together and expecting a fee. Doesn't work here with real estate.

Jul 08, 2010 01:37 AM
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Did this guy try and have you cash one of his checks ???????????????????????

Jul 08, 2010 02:19 AM
Charita Cadenhead
eXp Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Given his approach, I wouldn't want to see him become a licensee.  I'd be very skeptical about a co-op with him.

Jul 08, 2010 02:33 AM
Anonymous
Nell

David, sounds like you have a good head on your shoulders and know your business.

Everything about this guy sounds fishy. What kind of leads would he have? You never know... maybe he got the names from the phone book.

Jul 08, 2010 02:34 AM
#57
Bill Burchard
3B Realty: 951-347-3818, CA - Murrieta, CA
Broker, Realtor, Representing Buyers and Sellers

Thanks for the heads-up, David. (And congrats to your assistant for giving you a heads-up!)

Jul 08, 2010 02:56 AM
Joe Harvey
Lake Worth Real Estate - Lake Worth, FL

Yes I agree, your assistant is top notch!! Kudos for the way she handled the situation and great job on letting illegal potential business walk out the dorr.

Jul 08, 2010 03:11 AM
Bernadine Hunter, SFR, ACRE
Keller Williams Greater Columbus Realty - Pickerington, OH
"Finding Solution to Your Real Estate Needs"

A person who comes into a real estate office offering to "sell" leads probably is only concerned about one thing, and that isn't customer service. Sounds fishy to me.

Jul 08, 2010 03:49 AM
Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

Hi David,  there are a lot of unlicensed people trying to make maney in this market.  Or, it might have been a state rep looking for brokers trying to lose their licenses !

Jul 08, 2010 07:14 AM
Sergio DePinto
Royal LePage Maximum Realty.,Brokerage - Greater Toronto Area - Vaughan, ON

What an excellent story.. My hunch was that he was sent to take your licence... gee!

Jul 08, 2010 07:51 AM