ALLEN TURNER (REDZONE ADVISORS)

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Rainmaker
2,423,133
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Tread lightly...and remember this: Ignorance of the law wont help if things go south so you are on the right track for asking. Now to find out

Jan 19, 2017 12:59 PM
Rainmaker
2,971,333
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Don't know about California, but illegal in NC and SC.

Jan 20, 2017 04:37 AM
Rainmaker
725,030
Pete Xavier
Investments to Luxury - Pacific Palisades, CA
Outstanding Agent Referrals-Nationwide

You cannot AS A licensed agent pay out a referral fee to a unlicensed individual ON A residential deal in California. You are safe with a small gift, gift card. My gift to show appreciation for a referral generated by a non licensed person is typically a $50. gift card. 

As a multi state independent investor with wholesale experience, there are ways around this outside the brokerage realm, it may involve freezing your association/MLS membership (dependent on the state if you're also licensed in that state as an agent) to make it work as for paying bird dogs a reward for finding investment grade properties if they don't already own it or control it with a option. Paying commission on "self dealing" is allowed when done right...consult an attorney. THIS IS HOW I AM LEGALLY ABLE TO DO IT.

California law allows the payout of a referral fee to non licensed individuals in deals that involve commercial property, it was true a few months ago when I last looked. Please don't rely on my advice, go verify for your own due diligence.

You have many more years on me as a CA broker, how do you NOT know this? 

I'm really perplexed by this, because it is in the required ethics course when obtaining a license and in the continuing ethics course that would be required for you to renew, I was in 2 of the mandated courses and this subject was clearly in both, it's a major topic.

Jan 19, 2017 03:25 PM
Rainer
2,278
ALLEN TURNER
REDZONE ADVISORS - Santa Monica, CA

how about a finder's fee in California?  that is for the introduction of the parties.  This is different and agents having been offering such at netowrking events. read your comment below, good question for CAR.

Jan 19, 2017 02:13 PM
Rainmaker
1,023,722
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Not allowed in Atlanta.  May be a good idea to check with your Broker.

Jan 19, 2017 04:58 PM
Rainmaker
998,453
Corinne Guest
Corinne Guest, REALTOR® | Barrington Realty Company - Barrington, IL
Barrington Lifestyles

Shake their hand and say thanks. The rest is as Thomas J. Nelson, Realtor, CRS said, an expert in California.

Jan 19, 2017 02:50 PM
Rainmaker
910,482
Thomas J. Nelson, Realtor, ePRO, CRS, RCS-D
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

DO NOT DO IT or lose your license. RESPA violation!!!

Jan 19, 2017 02:27 PM
Rainmaker
4,431,972
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

You should not do it.

Jan 20, 2017 04:24 AM
Rainmaker
5,261,934
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Follow the regulations in your state.

Jan 20, 2017 04:13 AM
Ambassador
4,298,221
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

ALLEN TURNER - Ignorance is NOT bliss! 

Jan 19, 2017 09:23 PM
Ambassador
2,344,039
Fred Griffin presently on Leave of Absence
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

  Illegal in Florida.  Check with State of California Real Estate Commission for rules.

Jan 19, 2017 08:00 PM
Ambassador
2,188,589
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

I don't know about California, but you can't do that in Colorado. 

Jan 19, 2017 07:34 PM
Ambassador
3,981,932
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Tennessee license laws do not allow for any referral fees to be paid to nonlicensees no matter what state they are in.

Jan 19, 2017 07:29 PM
Rainmaker
723,904
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Don't know about CA, but it's illegal in my state of CT.

Jan 19, 2017 05:52 PM
Rainmaker
3,762,521
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Check the rules..I think it clearly states not allowed!! Do you value your license? Do you value what you bring to the table in a transaction? Why do you feel obligated to give away your commission? Would this CA resident give away part of their pay check??

Jan 19, 2017 05:35 PM
Rainmaker
576,873
Gloria Valvasori, Accredited Senior Agent
BETTER HOMES AND GARDENS REAL ESTATE SIGNATURE SERVICE - Mississauga, ON
REAL Experience | REAL Commitment | REAL Results!

I cannot pay a referral fee to anyone who is unlicenced.

Jan 19, 2017 04:56 PM
Ambassador
3,912,599
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Plain and simple - not allowed and could land you in hot water, or worse. Check the rules

Jan 19, 2017 03:46 PM
Rainmaker
1,366,727
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

ALLEN TURNER Illegal in my State to pay bird dog fees to non-licensed persons.

Jan 19, 2017 02:48 PM
Rainmaker
382,367
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

In Oregon this would be illegal.  Only licensed Brokers can receive referrals.

Jan 19, 2017 01:59 PM
Rainmaker
1,504,340
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

Yes it's against the rules.

Jan 19, 2017 01:49 PM
Rainmaker
4,865,398
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

do not pay referral fees to unlicensed people....

Jan 19, 2017 01:35 PM
Rainmaker
4,309,310
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Allen,

CA law does not allow referral fees to be paid to non-licensed individual in real estate.  Whenever we did, we asked for the license # and checked with DRE tnow known as the  BRE whether it was a valid and active one.  Lawyers do not come cheap in California.  A

Jan 19, 2017 01:11 PM
Rainmaker
2,891,145
Richard Weeks
Dallas, TX
REALTOR®, Broker

Sorry I don't know California real estate law.

Jan 19, 2017 12:45 PM
Ambassador
3,041,691
Paul S. Henderson, REALTOR®, CRS
RE/MAX Northwest. - Tacoma, WA
Tacoma Washington Agent/Broker & Market Authority!

We can in Washington state...

Jan 19, 2017 09:59 PM
Rainmaker
3,977,611
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I would not pay a fee, but maybe a nice Birthday gift.

Jan 19, 2017 05:37 PM
Ambassador
4,053,042
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Referrals that are paid to anyone are an ethical stain that tarnishes this profession in every state. 

But not likely to change since the powers to be have their hands in the cookie jar too. Kind of like congress and campaign finance reform.

Most professions prohibit any kind of compensation for referrals, this ensures that they will be sent to the most qualified rather than the highest bidder.

Jan 19, 2017 05:01 PM
Rainmaker
2,940,194
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

Here in NH i know we can only pay up to $50 bucks for a non licensed person

Jan 19, 2017 03:34 PM
Rainmaker
1,276,706
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

Those looking for a back door around this regulation are asking for an invitation in the front door of the Department Of Licensing... revocation of license division.

Jan 19, 2017 03:13 PM
Rainmaker
983,658
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

 A gift card ....

Jan 19, 2017 01:32 PM
Rainmaker
4,796,451
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Probably.

Jan 22, 2017 07:03 AM
Rainmaker
4,018,253
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Cannot pay a non-licensed agent in CO.

Jan 21, 2017 09:14 AM
Rainmaker
1,210,254
Ryan Huggins - Thousand Oaks, CA
www.HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

There are limits on what you can pay.  I believe it is $150.  I'd check with the state's legal hotline or the CAR.org website to be safe.

Jan 20, 2017 09:40 AM
Rainmaker
1,157,264
FN LN
Toronto, ON

Contact the regulator in California or refer to the relevant laws and regulations.

Jan 20, 2017 07:27 AM
Rainmaker
822,106
Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

Someone will be going to jail - it's called practicing real estate without a license... Good luck with that

Jan 20, 2017 06:43 AM
Rainmaker
3,049,771
Tony and Suzanne Marriott, Associate Brokers
BVO Luxury Group @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

You bet there are rules!

Jan 20, 2017 04:49 AM