Real Estate Referrals
I was with a brokerage and was a relocation specialist so I had agreed to pay up to 45% of my commission for any referral they sent my way. Most of the referrals were dead ends because there was a lot of pressure on agents to send the head office referrals and thus most of these were just names of people who might move…. So I spent a lot of time working on leads that did not turn out but it was good practice. I kept a positive attitude.
There were two leads that panned out into buys. The first one was a woman who was NOT relocating, she had called the wrong number and instead of being sent to the correct office as my brokerage had the house listed and our local office is where it was listed at, they sent it through relocation anyways because that is their policy to do so in order to get 45% commission instead of 25%. I accepted the client anyways because I had agreed to 45% commission split when I signed up to be an agent on the relocation list. The second one was the exact situation where the family was NOT relocating. And again, I found them a home. However, during the finalizing of the deal – after being in contract and going through inspections, etc. the relocation department told me OOPS they forgot to tell me that there was an additional 50% commission attached to this. They had agreed to paying a referral fee to an agent in California for giving them the referral. So the relocation department took 45% and then sent him 50% from my check not theirs.
Is there a limit to how much a brokerage can take out? I was looking at this as unethical but not illegal. However, I recently got my brokers license and it looks like there is a 50% limit. I cannot get my old company to acknowledge anything and thus dealing with them directly does not do anything. I just sent our local real estate commission this question and I will see what they say. I read your article and wondered if you could direct me to any resources. THANK YOU