What kind of fee is considered acceptable for a referral made by an unlicensed person?

In the context of referral fees in real estate transactions, it is important to understand the regulations governing compensation for referrals by individuals who are not licensed real estate agents.

A flat fee, such as a $50 payment, is often considered an acceptable form of compensation for those who may provide a referral to a licensed agent. This is because a fixed amount does not depend on the sale price or the commission structure of the real estate transaction, thereby ensuring that the unlicensed referrer is not participating in activities that require a real estate license, which typically include negotiating or closing deals.

In contrast, percentages of commission or sales price would imply a more involved role in the transaction which requires licensing. Therefore, a flat fee acknowledges the referral without crossing into areas that necessitate licensure.

Understanding these guidelines helps ensure compliance with state regulations and promotes ethical practices within the industry.