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#207086 - 02/27/08 10:06 PM Re: is this legal? [Re: cgoulart]
oakenfold Moderating Member Registered: 02/04/07 Posts: 73 Loc: Northern California	Originally Posted By: cgoulart Clarification on two points as I understand them. Under DRE guidelines, you can pay a referral fee to someone not licensed as long as they are referring friends, family and existing clients. You cannot pay a referral fee to have them round business up for you. If you work with an owner of a car dealership, you can pay him a referral fee for referring his mother, secretary and Joe who bought that BMW last month, but you cannot pay him a referral fee to cold call the phone book and bring you a lead. I spoke with the DRE on this topic about 2 years ago, unless they changed their rules, I know this to be true. That is partially correct. You can give a rebate or referral fee is it's a true referral meaning the person did not send business your way "in anticipation of compensation." B & P 10130 and 10131
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#207570 - 02/29/08 01:19 PM Re: is this legal? [Re: oakenfold]
cgoulart Member Registered: 02/11/08 Posts: 52 Loc: California	How do you quantify whether or not they sent business your way "in anticipation of compensation"? _________________________ Learn more about Private Money, Hard Money Lenders or Commercial Loans
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#207732 - 02/29/08 11:04 PM Re: is this legal? [Re: cgoulart]
deepsea Veteran Member Registered: 06/14/06 Posts: 607 Loc: Atlanta GA	Once again who the $%&* is the DRE? As I understand it you have to be licensed to receive a real estate referral fee. (this is a real estate forum) Don't know about mortgages or car dealers, but at least in Georgia, it doesn't matter if you are related or any anticipation of compensation is or isn't there, you can't pay a referral fee for the sale of property to anyone but a licensed broker. You can give a gift up to $50 to anyone you want. Not a lawyer! Advice is worth what you pay for it! _________________________ Dan Connolly RE/MAX Metro Atlanta Atlanta Real Estate Atlanta Real Estate Blog Atlanta Foreclosures - Bank Owned Homes in Georgia Search the FMLS and GA MLS for Homes in Atlanta Georgia
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#207882 - 03/01/08 11:32 AM Re: is this legal? [Re: deepsea]
Mr. Foreclosure Major Contributor Registered: 09/01/06 Posts: 2834 Loc: upstate New York	Keep the money, take them to dinner at a nice place, don't tie dinner to a transaction (talk about something else).
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#211711 - 03/14/08 02:54 PM Re: is this legal? [Re: Mr. Foreclosure]
cgoulart Member Registered: 02/11/08 Posts: 52 Loc: California	I don't know the rules in GA, probably a bit different in each state. DRE is the department of real estate, one of the agencies that govern lending in California. DOC is department of corporations, the other agency that governs lending in California. _________________________ Learn more about Private Money, Hard Money Lenders or Commercial Loans
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#214018 - 03/22/08 07:12 PM Re: is this legal? [Re: cgoulart]
oakenfold Moderating Member Registered: 02/04/07 Posts: 73 Loc: Northern California	Originally Posted By: cgoulart How do you quantify whether or not they sent business your way "in anticipation of compensation"? That's where the wiggle room is. It's gray.
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#214381 - 03/24/08 03:22 PM Re: is this legal? [Re: Jerry W]
jjohnson1985 Member Registered: 03/13/08 Posts: 101 Loc: Ohio	Originally Posted By: Jerry W As far as I can tell, he has been a broker for 4 months with no prior CA real estate sales license. Wow, so in CA you can have a broker's license without one transaction under your belt as an agent? I'm living in the wrong state! In Ohio you have to have a certain amount of transactions as an agent(I believe 40 or so, or 80 "halves" representing only the buyer or only the seller), and I believe at least 2 years of having a valid agent's license, plus another 2 years min. of a college education. I have been focusing on my agent's license and getting ready so I'm not 100% on the numbers but I know the requirement is there. To add to the topic here, in Ohio that add would be illegal. It is illegal to give anything over $50 for a referral. I am not sure about rebates, but $500 part of the ad is 100% referral reward. Like most areas I need to dig deeper about rebates. Honestly, I didn't know there could be a difference between a rebate or a referral fee in this type of situation. Edited by jjohnson1985 (03/24/08 03:28 PM) _________________________ _______________________________________ I am not licensed. I'm just the average Joe.
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