"If I refer you to my Friend Selling her House...What is my commission ?

You need to draw the line somewhere and be firm or you are breaking the law.

Thank you for the post. I hope consumers will read it and learn from it.

Yes, the law is clear - You must be a Licensed Agent for any referral fee!

Good morning Sally. It is always a honor to be referred, I will always call the person that referred me and thank them.

The public has a lot of misconceptions about how real estate commissions work.  A lot of them think we get kickbacks from the service providers we recommend -- also illegal.

This is good reading for those expecting compensation for a referral.

Have an outstanding weekend!

This is so true.  Some people just don't realize that it is a law. 

Sally and David it is VERY clear on the Loan Origination side of the business.  We cannot pay our clients or those we partner with for referrals.  It is a quick way of losing our license.

Hi Sally and David.  Everyone thinks they can make a quick buck by doing referrals.  And, they can, but they need to get a license first.

Every now and then I get a comment like this with a laugh and quickly respond it is against the law to pay a fee like this to any unlicensed party. If they are in it for the money I am sure they find an agent willing to disregard the law.