Does anyone know the legalities of paying another licensed salesperson a referral fee after close of escrow for sending clients my way? Is it legal? It would be a California referral to me in Arizona ... any suggestions or recommendations or known legalities would be appreciated!

It is perfectly legal to pay referral fees broker to broker to licensed out of state licensees. What makes you ask?

Because I was unsure of the answer! I am just starting in Arizona and wanted to make sure this was legal! I have a lead from an agent in Los Angeles and if we sign a contract I want to make sure I don't lose my license on one of my first deals!!! Thanks so much for the reply!

The contract is actually between your broker and the broker of the other agent.

I wonder if all states allow this? In other words, is interstate referral payment between brokers allowed in all states in both directions? I'd not be surprised if a state or two prohoibits receiving referral fees from a transaction in another state.

Anyhow, unless someone knows the Arizona real estate law pretty well I can't see how they could answer such a question. I know receiving a referral is legal for a broker-of-record here in Texas but I wouldn't presume the same to be true in Arizona.

Jason,
I know this based on Coldwell Bankers Relocation department and othe relocation companies that are national. There are no exceptions listed
and I have personal experience over the last 17yrs with referral fees from 39 different states and 5 foreign countries and I have received 6 referrals from clients relocation to AZ and 2 of those were last year.

That is why I said Yes instead of my guess would be yes.

Your broker should have a referral agreement form for you to use. If not, PM me with your e-mail address and I will send you one.

Paul:

So your broker has paid a referral fee to a broker AZ? That would be a pretty darn good clue that it's okay, except you still wouldn't know for sure because sending someone a check doesn't prove it was legal for them to receive it.

Get real Jason,
Check with your own companies relocation department if it has one instead of wasting peoples time. BTW it was an AZ broker sending my brokerage a check for buyers I referred.

Bradley asked about receiving a referral fee in AZ from an out-of-state transaction, not the other way around. You cannot imply that this is legal based on your personal experience which was the other way around, unless you're just dying to practice law and give legal advice to a person in another state.

Is that real enough for you?

yes u can pay and accept a referral.

Take a look at these online lead generators - they hold a brokers license in 1 state which allows them to collect referrals from any state.

Yes Yes Yes....legal legal legal. I am in Az and its legal.

Give it up Jason!

My information is 100% factual. Actually I can base this off my personal experience because I have received and paid out of state referral fees on numerous occasions. Try thinking for just one second now...how do you think these large relocation companies could operate if the practice was illegal. And as someone already mentioned these lead companies that hold a license in a single state.