Has anyone been sucessful at negotiating these fees to a lower amount. IAS had a deal with me and the fee was 25% ouch!

OAM is 35% and they're not prompt at paying their bills either......

Good luck. Too many agents who are willing to pay the referral fee. You either accept it or they move on.

Interesting thought - remind me again what the sate laws are on paying and collecting referral fees?

Management fees, technology fees, processing fees,

semantics... I haven't had one agreement yet that uses the word

referral in regards to the fee. These agreements aren't written

by their attorneys just to keep 'em busy.

My company split average is only 1.3%, doesn't leave me much does it?

Oh, with that I agree, but funny thing about real state commissions is that they feel the same way.

Call it anything you want - if it is paid out of closing as a percentage of the sales price or gross commission - I just wonder how that passes muster with the various state REC, just a thought. Do you know the email address of your real estate commission?

Since it is a "referral" fee, they can charge what they'd like. Since without their referral you wouldn't have the listing. It is nothing different than an agent soliciting for referrals and paying a percentage to get a referral from you. You'd want to be paid for your referral wouldn't you? Assuming that the referral resulted in a sale?

Or in another scenario, RedFin does the same thing, but it's called a rebate. No difference.

Of course I understand that they are placing a listing for us to sell and from which they will get paid the referral.

My point is just like when I send or receive any other referral fee- I get a copy of the re license - don't you? Who do you 1099?
Question is - are they all properly licensed?

There are certain conditions where they may not need one in order to place it with you - like selling for a developer you work for - but that even has limitations. You can't negotiate or change terms of contracts.

There are so many ways the different AMC handle things each would need to be checked out beforehand.

I'm sure others have questioned this and everything needed is in place - so an AMC should not hesitate to provide any needed documentation.

Just a thought.

IF, in California, this were a referral to another brokerage, I would get the tax I.D. number and that would be all (our state forms have a referral agreement). I'm not required to get a copy of the license (then again that information is accessible on the State's DRE website). At the end of the year I would issue a 1099. That's what I would do. TIN would also be available from the escrow company as would be the correct company unit where the money went (which may not necessarily who I dealt with). I'm sure that there are other ways of doing things but that seems the most straight forward.

In most states, you can pay a referral fee to any entitiy that is licensed in a state, even if it's not your state.

Usually the referral agreement comes with the pre-list package. If you don't send it back, you don't get the property.

I look at these just like a peer to peer referral. If I didn't pay the referral, I wouldn't have the business. So 75 or 80% of something is better than 100% of nothing.

By the way, we usually see the referral fees directly on the HUD-1, so you aren't writing a check after the closing.

1.3% is your split average? I think I would find another company to work for!!