Would this be illigal?

Real Estate Agent with Nissi Homes Realty

 IIs any commision or fees ok to recieve as long as it goes through my Broker? I mean, we recieve 25-30% from each other just for giving contact information with referral agreements signed by our Brokers. Here is part of an email I recieved from a group that connects investors with developers, I get paid a commision from what ever amount the investor kicks in, just for giving his contact information. Part of the email:

I asked about the compensation, here is the scenario:


  • You are being compensated for referring a buyer to the program, not for representing him as a realtor.
  • The Formula and the buyer will joint venture and buyer will contract a unit of real estate directly with the developer, who never pays you or knows of you.
  • Then, Formula will pay TBC, LLC who is a joint venture partner in the company, not a brokerage or real estate company; then, for the referral  you will receive your finders fee = 6% of money placed.

Now, this group, the Formula, will buy a bunch of units from whatever developer I referr, I get a percentage of whatever they buy also. They have no problem making the check to my Broker if that is what I preferr.

Please feel free to contact me with advice.




Comments (2)

David Spencer
Keller Williams Northland - Kansas City, MO
Show Me real estate in Kansas City

Read your state license law. It probably has a staement that a licensed agent may only be compensated by their sponsoring broker. That means if you did some activity in real estate and the name on the check stub is not your broker's, you are in violation. If your broker is involved in CLO, or some other program such as partial ownership of a title company, you may be able to receive compensation directly. However, receiving a fee just for a referral is illegal. You must have performed some work.

Dec 13, 2006 04:54 AM
Jay Thompson
Zillow - Seattle, WA

I concur with David. Better yet, rather than relying on us or your interpretation of the laws, ask your broker. That's why they are there.


A world record for blog commenting!



Dec 14, 2006 02:29 AM