Hi All, 

I have a couple of questions. I'm currently in RE school planning to take the state test next month. So far so good but I'm not seeing in the curriculum anything about laws regarding referrals across state lines. 

I'm aware that as a licensee in CA I can only solicit for business in CA but what if, for example, a family member in Arizona asks me to refer them an agent. Would I be allowed to get a referral commission from the agent in AZ that I provide the lead to?

The reason I ask is because part of my marketing plan is to make videos for YouTube focusing on CA relocations. If someone out of state contacts me for a referral for an agent in their state I'm curious what my options are.

Also, maybe as a second question in the back of my head, do agents that are given leads/referrals often try to get out of paying the commission or is that a big no-no in industry? It would be nice to be able to provide leads for extra income but if it's ripe for getting screwed out of commission then I'm curious if it's worth it.

Thanks in advance for any advice.

Cheers!

@Jason Clark Yes, this is allowed. I always pay a referral fee to any agent who refers a buyer or seller to me. I get many referrals from California agents, which is awesome. No reputable agent would ever stiff a referral partner. I gleefully pay the referral fee for helping clients I would not have met otherwise.

Feel free to send clients my way for the greater Metro Phoenix area, including Scottsdale!

Melanie

Thanks Melanie! That's exactly what I was hoping to hear. Thanks again.

@Jason Clark My pleasure!

You should be able to get paid a commission for the referral.

If you join a company like Keller Williams it is very easy and trustworthy.  We have an online system that connects you with other agents and you can see their production information if that helps you.  It also helps you keep track of referrals.  You can even do worldwide referrals.  We also have a private facebook group that is super active where you can post and get referral information.   There's a couple of times people have forgotten to pay me...especially if it takes a while, or there are split commissions in commercial transactions....pay 1x when contract is signed and another a year later if lease continues, things like that.  I won't say any of it is perfect and maybe you don't get paid every time, but for the most part it works out well.

It's probably a little more trustworth inside your company because there is a little more power if you have an issue that your team leader or broker can call the team leader/broker of the other agent for you and go to bat if you didn't get paid.

Thanks for the info Bruce. I just watched a video on YouTube that shows the referral system at KW, very nice. Thanks again.