Posted by John Behle on April 10, 2000 at 14:38:44:
I’m not sure about the specific legality in California, but in many states it is illegal for them to accept a referal fee. I would just ask the real estate division and see what they say. In my area for example, it “could” be legal if the agent sets himself up properly to do it. It used to be illegal to accept any kind of referal fee from a mortgage broker, but they loosened it up so that if there is proper disclosure and a few other steps are followed they can.
I’ve contacted a couple of Realtors in my area about referring to me possible notes for sale. A couple of them in particular have a number of clients whom they’ve worked with and who they know have notes they might like to sell.
Can anyone tell me 1) Is it legal in the state of California to offer them a referral fee if a sale closes 2) is it ethical to do so? and 3) If it is legal and ethical, what would be a fair amount? Thanks in advance.