by Bob Hunt, Realty Times

These days there is a dearth of buyers in most markets around the
country. In such conditions, real estate agents must use a variety of
resources and strategies in order to get connected with buyers. One
such strategy is to offer the payment of a referral fee to anyone who
might refer a bona fide buyer to the agent.

More than a few real estate agents are confused about the laws
governing referral fees. Some don’t even know that there are any laws
governing referral fees. Some know, but don’t care.

Particularly problematic is the issue of paying referral fees
to people who do not have a real estate license. An agent’s unlicensed
brother in-law might ask for a sum of money in return for referring to
him a person who intends to buy a house; and the agent very well might
agree. Indeed, agents will sometimes solicit referrals from unlicensed
persons. They may even advertise that will pay a certain fee for the
referral of buyers or sellers.

Real estate transactions and the activities of real estate agents are
subject to a variety of both state and federal laws. The fact that
there are these two different authorities provides some explanation for
the common confusion about referral fees.

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