Simple Question: Agent Refuses to Pay a Referral Fee
Maybe this is not a simple question and the answer my reside in state and/or local laws.
You refer someone to an agent with an agreed upon referral fee. For the sake of dicussion, let's suppose the brokers involved are members of the ActiveRain Community.
The referral is documented with a written referral fee agreement signed by the referring broker and receiving broker.
I will say, that in California, the referral fee agreement form has a blank space to fill in the amount or percentage of referral fee to be paid. The default time frame within which the agreement is valid is 12 months. However, there is also a blank space to specify a different time frame.
You make such a referral with no expiration date. A transaction closes from your referral. You learn about this from the party you referred. The agent who you referred the party to made over $50,000 in commission as a direct result of your referral and the agent refuses to pay the agreed upon referral fee.
People will be people. There are all kinds of people in the world. Thankfully, for the most part, I believe most people are kind, honest, trustworthy and will do the right thing.
The fact is that there are the opposite people too. People that will lie, cheat, and steal; who are dishonest and will justify their cheesy, sparmy ways and sadly, these folks are so disconnected from truth and reality, they believe they are not doing anything wrong.
These folks stand at the ready and are prepared to screw anyone and everyone over for profit and personal gain.
But I digress.
The agent contends that more than two years lapsed since the referral agreement was executed and therefore, the agent does not have to pay a referral fee.
There is no expiration on the referral fee agreement and there is nothing else governing that referrals automatically expire in 2 years.
Despite all of your best efforts to get the agent to do the right thing and pay you a referral fee, which would be to the tune of approximately $20,000.00, the agent REFUSES.
What would you do? The answer cannot be go to the broker. The agents are both brokers.
UPDATE 1-21-2016 @9:15am: For the sake of clarification, when I ask: What would you do? I am NOT asking for legal advice or advice on what I should do as some comment imply. The intention in posting this is to stimulate awareness.
UPDATE 1-21-2016 @9:15AM: It's not even been 24 hours since this was posted and I have received so many calls and emails from other ActiveRain members sharing their stories about referrals made to AR members who did not pay them. Me thinks this referral river runs a little deeper than I initially believed.
Thank you for your insights and comments.
Comments(203)