Thursday, August 16, 2018

When Is A Colorado Real Estate Broker Referral Justified

By Margaret Murphy


It is not unusual for Brokers and their agents to refer clients to other licensed agents. It is usually because it is in the best interest of clients. Agents refer clients who are relocating outside a state in which the agent is licensed or when the client is interested in property outside the agent's area of expertise, like commercial properties. A relocation company may offer a Realtor a Colorado real estate Broker referral to assist an employee transferring from one part of the country to another.

When families relocate a significant distance from everything and everyone they know it can be difficult to decide which professionals are trustworthy. Since finding living accommodations is usually on the top of their to-do list, families often enlist the help of a Realtor they have used in the past to refer them to a good agent in the new town. Most Realtors are happy to do this and know they will be compensated when the family finds the right home and closes on it.

Residential agents do n't usually sell commercial property, and vice versa. The Realtors have different areas of expertise. Sometimes residential agents sell small commercial properties, but will refer clients to a commercial Realtor when large properties are of interest. This is because they don't have the same contacts as their commercial colleagues. The referring agent will expect to be paid twenty-five percent.

Relocation companies can be extremely useful when large companies hire or transfer employees from one region to another. They assist with the actual move and help the employees make new living arrangements. Instead of a twenty-five percent fee which is customary for residential referrals, relocation companies often require as much as forty percent. Some agents prefer not to work with relocation companies because so much is taken out of their commission.

In metropolitan areas, most agents have sales territories. Since they only sell in one general area of the city, they may have to refer clients who are interested in properties outside that area. If the referring agent doesn't personally know of someone to refer a client to, it is possible to do the research necessary to find a reliable agent who is familiar with the area in which their client is interested. Online referral companies that pre-screen their agents are the best resource.

It can be tempting for agents to reward a non-agent in the form of what some will refer to as a bonus for referring clients to them. This is absolutely not allowed. You cannot share a commission with an unlicensed individual.

The real estate commission can come in and take that agent's license, and fine or shut down the real estate company he works for. It is permissible to give a thank you gift that does not have significant value. Gift certificates are a good example.

Agents refer clients all the time. The laws of the states in which the agents are operating must be complied with. The rules and regulations of the real estate commission and the principal Broker take precedence over the any arrangements the agent makes.




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