Can a real estate agent do a deal without their broker?
Posted on May 28th, 2010 in Renting & Real Estate | 7 Comments »
orkneylove1 asked:
Can a realtor help a friend with a real estate contract and accept a Finders Fee from the seller? And not have to pay their broker? Or have it even go thru the broker at all?
7 Responses
Citrus Heights Real Estate
NO! Not in California at least. BTW accepting a “finders fee” is illegal by federal law.
Boston Real Estate
Sounds sleazy.
Orlando Fl Real Estate
Not in NC either, you only can recieve money though the broker you work for.
Citrus Heights Real Estate
Not in Florida either. RE agents have to (must) work under a broker and also receive any monetaries through him.
Orlando Fl Real Estate
Legally YES AND NO, but i think you will be OK…
The confusion is that it may violate your friends employment contract, but not necessarily violate the law.
Many agents have agreements that treat referrals and finders fees differently than real estate commissions. The liability is less to the employing broker, so the cut is sometimes better. If you only need your friend to “consult” on the deal, then their broker is likely to charge less. But the agreement DOES require that ALL transactions be done withthe knowledge and supervision of the employing broker.
Your friend needs to bring it up candidly with his broker. If he feels uncomfortable having a candid discussion with his broker, then he needs to move his license to a better office.
BTW- The finder’s fee restriction is on licensees only, not on typical homeowners. Also, even with a license, as long as the recipient has a RE license you can pay them whatever fee you want…
Frederick Md Real Estate
The REALTOR should ask the Broker if this would be OK with the company first of all.
A REALTOR can sell a list a house or sell a house for $0 is they wanted. This would be OK with the Broker if the REALTOR was on 100% and the company wasn’t going to get any of the commission. Most REALTORS are on a commission split so the company would be against $0 commission (they wouldn’t be getting any money from this deal).
I think that if the company feels OK with the situation then the REALTOR can “consult” with the friend and offer assistance and receive a consulting fee.
The worrying thing to me would be that since you are receiving a fee (whether it be a consulting fee or worded otherwise) then you are representing by law of agency the person you received the fee from. You owe a duty to that person and you are liable for that advice.
There may be a contract drawn up that would state that the REALTOR is only offering advice as to the written contract and not any advice to…Blah, blah (whatever the REALTOR does not want to be sued for later).
You are not running the deal through the company so the company is not representing the Seller and therefore is not liable.
If the licensee wants to put their license on the line for a “finders fee” I guess it would be up to them – if OK with the company.
Keyless Remotes
No..a realtor must go through the broker.