Re: Now I’m being told…referral pay illegal! - Posted by Jim FL
Posted by Jim FL on September 17, 2005 at 18:49:20:
Sounds to me like you need to embark out on your own, and use the services of others.
This partner, or associate, whatever, is now brainwashed by the RE commission and their class full of literature and materials, some might call partial propaganda. (however you spell that. )
Also, your friend, might be correct.
In most states where I’ve looked it up, paying the fee is not illegal, but collecting it is.
That appears to be the case in my home state now.
However, some time ago I had a page on my website that advertised that I pay cash for referals.
Some T/B’er who defaulted, and lost their option money, and possession of MY house, thru eviction, filed a complaint with the RE commission.
They sent me her written statement, taken by a local police officer, who noted on the statement that she was taking it off duty, and was the defaulted tenants sister.
Anyway, lots of bad grammar, and sentences that did not finish, and nothing could really be followed.
EXCEPT her last statement that said I told her I was keeping her option money as my ‘commission’…which was false.
So, the RE commission investigator called me up, and asked me to drive over 100 miles to meet him and speak.
I said, "Nope, not unless you send me in advance, a travel fee of $500, and then I charge $200 an hour for my time."
To which he replied, well, your not an agent or broker then?
I said, "Nope, an investor, and consultant on various investment strategies."
He asked if I ever used the word ‘commission’ when talking with the defaulted tenant, and I told him “no”.
I then faxed him a copy of the judgement, where I was the plaintiff, as the landlord, and the defaulted tenant was the defendant, showing they had lost, due to failure to pay rent.
I thought that was the end of it.
Then, about 12 weeks later, I get another letter, with the original complaint attached, and printouts of my web page advertising referal fees.
It was a cease and desist order, from the RE commission, telling me not to pay referal, and quoting the actual law where it said it was okay to pay them, just not to receive them.
I showed it to my attny, and asked him what to do?
His response, was to send them a letter correcting their position, and telling them to leave me a alone or face action from us.
I got a letter of apology from their ‘head council’ a few weeks later, stating they misunderstood the ad.
Never heard a word since, and that page, is still there.
They govern agents, and brokers, and those acting like them without licenses.
NOT investors who are acting on their OWN behalf.
and when speaking with the investigator, I did ask him what things were prohbited by unlicensed people in RE.
He told me acting for others in a sale, and managing things you don’t own.
I asked if we could manage things relatives own, and he said, “NO”, which is wrong also.
So, don’t rely on what some commission member says, teaches, or tells you, ask your lawyer and read the law…then follow it.
I see nothing wrong with referal fees.
And if you still want to give deals to this partner person, sign them up, and assign them, for a LARGER fee…since he set the rules.
My two cents,