Real estate agent referrals

Through my business I am getting a steady stream of quality seller leads that I am referring to real estate agents. But because I am not a licensed real estate agent I have been told I cannot be paid for a referral.

Is this correct?

And due to my business I cannot become an agent.

So I'm wondering, is there another way to receive a referral for introducing sellers to real estate agents?

FYI: 20% referral fee on an agents commission of 2% for a successful referral is considered normal between agents. So in this example, on a $500,000 property sale the referral fee would be $2,000.
 
are you expecting something nice as xmas gifts ?

some companies have gifting policy, but if you are running your own business you can receive gifts from RAs ?
 
You can receive paid fees for referring clients even if you aren't a licenced real estate agent. Just the same as any other business.
 
Your relevant State licencing office will leave you in no doubt about who needs a licence. I'd suggest you look up the Act for your state and let the legislation be what guides you. If that's unclear, speak to your solicitor.
 
Through my business I am getting a steady stream of quality seller leads that I am referring to real estate agents. But because I am not a licensed real estate agent I have been told I cannot be paid for a referral.

Is this correct?

And due to my business I cannot become an agent.

So I'm wondering, is there another way to receive a referral for introducing sellers to real estate agents?

FYI: 20% referral fee on an agents commission of 2% for a successful referral is considered normal between agents. So in this example, on a $500,000 property sale the referral fee would be $2,000.

What line of work are you in if I can ask?

As for referral fees- I get the occasional vendor, borrower etc that is looking to be referred to an agent or broker. I generally refer them to 2 or 3 choices who I know from experience will do a good job. Commonly, but not always these people will refer work to me but that is a secondary consideration.

I don't ask a fee for referral but I ask the client to give me feedback on the service received from the referral. If they do a crap job they get no more referrals.

I would not take a referral fee or if did it would be disclosed to the client and probably be rebated against my legal fees that I am charging.

If someone "networks" with me (something I hate doing to be honest- I'd rather be at home watching TV) that is not enough to get the work. If they try and bribe me they certainly won't get it. If they've done a good job for other clients then they will get an unsolicited referral from me in the right circumstances.

I know that forgoing all of the back room deals means that I will be working twice as hard for my retirement but that's just me I suppose.

My 2 cents worth.
 
So I'm wondering, is there another way to receive a referral for introducing sellers to real estate agents?

FYI: 20% referral fee on an agents commission of 2% for a successful referral is considered normal between agents. So in this example, on a $500,000 property sale the referral fee would be $2,000.

Couple of things, if there is an agreed commission you are receiving for referring it needs to be outlined and signed by the vendor that they are okay paying you for this referral.

If you are talking about 20% of their listing fee, using the example above the agent would have to up their commission by $2,000 just to cover your fee. If it isn't the principal typical the agents $10,000 (2% of $500k) is dived by

20% Listing Agent
20% Selling Agent
60% Office

Swings and roundabouts, sending you a nice xmas gift, bottle of wine, gold class movie tickets whatever it might be is an easier way and if they needed someone to do what you provide they would refer them to you without charge or would they have to charge you $2,000 back for each referral?
 
Through my business I am getting a steady stream of quality seller leads that I am referring to real estate agents. But because I am not a licensed real estate agent I have been told I cannot be paid for a referral.

Is this correct?

And due to my business I cannot become an agent.

So I'm wondering, is there another way to receive a referral for introducing sellers to real estate agents?

FYI: 20% referral fee on an agents commission of 2% for a successful referral is considered normal between agents. So in this example, on a $500,000 property sale the referral fee would be $2,000.

One only has to read any paper in Australia about the way some Bureaucrats in different location find paper bags full of cash on the desk ,maybe just don't refer them on till the paper bag turns up on your desk..
 
Through my business I am getting a steady stream of quality seller leads that I am referring to real estate agents. But because I am not a licensed real estate agent I have been told I cannot be paid for a referral. Is this correct?

In NSW:
Set out below are the terms of clause 14 of Schedule 1 of the Property, Stock and Business Agents Regulation 2003 in relation to spotters fees:

Schedule 1 General rules of conduct applying to all licensees and registered persons

14 Inducements
An agent must not offer to provide to any other person any gift, favour or benefit, whether monetary or otherwise, in order to induce a third person to engage the services of the agent as agent in respect of any matter.
 
In NSW:
Set out below are the terms of clause 14 of Schedule 1 of the Property, Stock and Business Agents Regulation 2003 in relation to spotters fees:

Schedule 1 General rules of conduct applying to all licensees and registered persons

14 Inducements
An agent must not offer to provide to any other person any gift, favour or benefit, whether monetary or otherwise, in order to induce a third person to engage the services of the agent as agent in respect of any matter.

Yes that is legal answer however a REA can send a bunch of flowers or xmas gifts as a thankyou. It would be wrong if an agreement has been setup to provide reward as this would induce them.

However nothing wrong with sending thankyou gifts as everyone does it and isn't a formal agreement.
 
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