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Thomas Phelan (IRA Choices)

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Spirit Messingham
Tierra Antigua Realty - Tucson, AZ
Third Generation Full-Time Realtor® 520 471-6900

That should have been figured out, before the referral was given, not afterwards.  As is often times the case in real estate, what do you have in writing?  Congrats on your sale.

Apr 15, 2015 06:54 AM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

It is typicaly 25%.  But, it should be off the top with your wife's broker.  So, if the commission were $10,000 the referring party would be given $2,500 and your wife would receive $7,500 and the customary franchise fees and splits would be from that figure.

Apr 15, 2015 03:23 AM
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

25% is normal in this area. It should ahve been discussed, and put into a written agreement from the start. The broker not your wife should decide the split/distribution after the 25% is taken out.

Apr 15, 2015 12:57 AM
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Thomas Phelan 1. Referral fees are negotiable. 2. Broker fees are usually taken off the top of the commission earned. I think it's you.

Apr 15, 2015 12:26 AM
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

She is obligated to pay EXACTLY what the referral agreement states.

It is not negotiable after the fact.

How your wife applies the fee will now depend on her contract with her broker. 

All of this is spelled out in black and white in the documents your wife signed.

For your information 25% for the referring broker is more than reasonable, and actually generous on the referring side. You are looking a gift horse in the mouth.  However, the arrangement she has with the brokerage is not the least bit generous. The 'good guy' in this scenerio is the referring attorney of whom your register dissatisfaction.

Leave the real estate stuff to your wife and you should focus on generating new leads and clients for her NOT directing how she should manage her business.

Apr 15, 2015 12:25 AM
Ajay Pandya
e-Merge Real Estate Unlimited - Columbus, OH
Realtor Ajay Pandya

Discuss those things first.

Apr 19, 2018 10:37 PM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Coldwell Banker Realty

Jeff nailed this one!

Sep 17, 2017 06:09 AM
Brian L. Sirota, Esq.
Bristar Realty (Realtor/Attorney) - Orange, CA
For Solutions: (714) 501-7660

These are legitimate questions.  Tom deserves a straight forward answer, not an uppity lecture.

That said, I endorse the answer given by Gabe Sanders.   The most common arrangment is 25% off the top.  

Jun 07, 2017 02:43 PM
Ben DeHaven
Haven Realty & Investments - Lakeland, FL
Proudly serving Winter Haven & Lakeland, Florida

I agree with everyone here. You need to has that out before it gets signed. 


Apr 16, 2015 01:44 AM
Russ Ravary ~ Metro Detroit Realtor call (248) 310-6239
Real Estate One - Commerce, MI
Michigan homes for sale ~ yesmyrealtor@gmail.com

25% is very standard.  She would have had nothing if it was not for the referral.  Never be greedy

Apr 15, 2015 11:20 AM
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Why isn't it your wife asking the question since she is a REALTOR® and must know the rules. I am skeptical as to why you are asking this question here.

Apr 15, 2015 07:58 AM
William Feela
Realtor, Whispering Pines Realty 651-674-5999 No.

Depends...In Minnesota we can't pay anyone except Licensed Realtors.   I hae had Attorney's try and get me to pay a fee, but I tell them I can't.  They are not real happy about it.  


Otherwise, you always discuss fees right up front!

Apr 15, 2015 07:43 AM
Sharon Altier
Coldwell Banker Realty - Elmhurst, IL
Luxury Property Specialist, CSC, SFR

1.  To state any "customary" figures would be in violation of anti-trust laws, so no comment there.  The fee can be whatever is mutually agreed upon by the parties.

2.  Your wife's firm is compensated with the referral fee.  She is paid as any incoming commisison is paid (less broker's fees, etc..)

3.  Yes, an agent working on a referral is usually getting less than they regularly do, but it is considered something rather than nothing.  They would hope to give excellent service whereby the client would come back to them and use their services again.

Apr 15, 2015 04:00 AM
Thomas Phelan
IRA Choices - Miami, FL

Thank you for your reply.

Actually I was the one who introduced my wife to the attortney/broker and the relationship among the three of us is excellent.




Apr 15, 2015 02:25 AM
Sandy Padula & Norm Padula, JD, GRI
HomeSmart Realty West & Florida Realty Investments - , CA
Presence, Persistence & Perseverance

Thomas Phelan She needs to 'bite the bullet' and not the hand that has 'fed' her. 25% is standard, and she might want to add a sit down over a cup of coffe when she hands over the referral fee to sow the seeds for additional future referrals.

Apr 15, 2015 02:22 AM