Is it legal to give a real estate agent a referral bonus for getting you a construction job on a house selling?
Posted on June 7th, 2010 in Renting & Real Estate | 3 Comments »
Brandon S asked:
I would like to give $50 as a referral for real-estate agents who get me leads for work that needs to be done before the house is sold. Is this legal in PA?
Marathon Fl Keys Rentals
I would like to give $50 as a referral for real-estate agents who get me leads for work that needs to be done before the house is sold. Is this legal in PA?
Marathon Fl Keys Rentals

3 Responses
Illinois Real Estate
I’m in Ca and I always gave a 10% tip to interior designers that referred me for and art job. (I do murals) it was legal and acceptable
Illinois Real Estate
I would think so but you may have to do it in the form of gift cards like gas for their autos or grocery store cards etc
Hawthorne Ca Real Estate
Maybe. But…
Regulations can vary state-by-state. Also, it depends on the real estate agent’s managing broker.
If your question had dealt specifically with a house sale, the answer technically would have been no. The money is earned by the agent’s broker. All money must flow through the broker to the agent. As a practical matter, agents often receive bonuses, and brokers are perfectly happy to allow that. Sometimes they’ll take a percentage, sometimes not. Again, though, that applies to a transaction in which the agent has (through his/her broker) represented a buyer or seller.
As for an agent doing something outside of representing a buyer or seller, the answer is still murky. However, the broker may not permit such activity. It places the agent into an uncomfortable and questionable position. From your perspective, you’d simply be rewarding an agent for referrals. But the other perspective is that the agent is providing advice and guidance based on payments you’re making.
So, the question of legality is one issue. However, an equally important question is whether the agent’s broker will permit such an arrangement. Some won’t. Others might.
Hope that helps.