

991,094
It could be done legally if you are in a deal outside of what RESPA governs, like a cash deal, insurance finance or owner finance. There are limitations, connecting is the only involvement the referring party is restricted to and there at least WAS a limitation of $500., as of this moment I do not know precisely if that limitation is valid today. Double check CA state law and of course be sure to properly disclose.
Actually I just read a "token of appreciation" can be given after the fact (I take that to mean no "quid pro quo") The $500. was not that long ago, I guess that might of been changed?? As far as a gift, I do know many have safely gifted $50. gift cards for a appreciation of referral gift for an unlicensed person.
On commercial & vacant land deals a agent can give an unlicensed person a referral fee provided that they merely introduced a new client and was not involved any further.
I do not see anything current and conclusive regarding the residential side as pertaining to referral fees to an unlicensed person.
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Troy Erickson AZ Realt...
Chandler, AZ
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Richard Alan Naggar
Riverside, CA
1,658,108
''If the resulting transaction falls under RESPA. RESPA generally prohibits a real estate agent from paying a referral fee to anyone. However, a real estate agent may give someone a token of appreciation after receiving a referral. Furthermore, a real estate agent may give a commission rebate to his or her client.''
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Pete Xavier
Pacific Palisades, CA
1,547,084
Since you're in California, I'd check with the CAR's legal hotline or use their new app to ask the question. That's the most authoritative source I can think of.
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Pete Xavier
Pacific Palisades, CA
5,205,906
I'd call the C.A.R. legal hotline - it's free
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Pete Xavier
Pacific Palisades, CA
5,774,106
Roxy,
I think Pete X with X Group Real Estate Advocates California has given you a good answer. I would still check with an attorney. It is worth the fee for peace of mind. A
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Pete Xavier
Pacific Palisades, CA
2,719,063
Does CAR have a legal hotline? I would pose this question to an Attorney. And I would want the answer in writing.
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Pete Xavier
Pacific Palisades, CA
1,269,775
A gift is probably OK. Check with your RE attorney or CAR
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Pete Xavier
Pacific Palisades, CA
1,525,616
I would check your state laws or ask your broker if you are working with a company, but I would say it is porbably illegal to give a finders fee to anyone who is not a licensed REALTOR. You can give a gift but only up to $25.00 If you give a gift with your name printed on it that is considered advertising.= so it can go above the $25.00 limit.
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Pete Xavier
Pacific Palisades, CA
140,768
Doesn't RESPA apply regardless of the loan? My market center is careful with any vendor with regard to what the vendor donates.
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Lise Howe
Washington, DC
6,774,529
1,466,257
Roxy Edge Paying fees to unlicensed people is illegal here in Virginia.
3,074,716
1,677,946
921,504
..against the law..
That makes this a legal question, with consequences, that can ONLY be answered by an attorney.
Your association's legal hotline is where you should turn. You will need to know the business structure of the source.
223,973
2,759,862
Good morning Roxy Edge . I don't know about California but it is in Tennessee.
216,960
Rely on the legal advice of your local organization or State licensing organization...
637,764
4,273,331
4,420,523
3,764,591
It's interesting. In DC a real estate broker can do it - it still has to be broker to broker. In most jurisdictions you probably can't.
3,224,722
2,448,781
don't go there. When you have to figure out what the boundaries are, you just should avoid the issue. Be safe not sorry!
1,231,903
2,443,346
In Indiana we can give a gift to someone for a referral but only up to $25. Commission can only be paid to a licensed agent.