Legal Question in Real Estate Law in California
Real Estate Agent Paying Commission To a Third Party
In the near future I will be conducting some marketing campaigns that will lead me to people who want to list their home for sale. I am not a real estate agent. What I am interested in doing is referring these people who want to list their home for sale to local real estate agents. However, I want the real estate agent to pay me a fee, or commission, for introducing them to the seller. Specifically, I would like the real estate agent to pay me a fee equal to 0.5% of the sales price of the home. And I would like the fee to be paid directly to me at closing through escrow, so I don’t have to chase down the realtor for the fee post closing. It should be noted I would not want any up front fees from the realtor. If the house doesn’t sell, I don’t get paid. Would this transaction be legal and enforceable if I had a contract signed with the realtor agreeing to the above terms? Are real estate agents in the state of California allowed to pay a portion of their commission to a third party through escrow?
2 Answers from Attorneys
Re: Real Estate Agent Paying Commission To a Third Party
A real estate referral fee or commissin can only be paid to another licensed real estate agent.
Re: Real Estate Agent Paying Commission To a Third Party
What you're proposing to do would require you to have a salesperson's license AND work under the supervision of someone with a broker's license.
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