Splitting agent commission

[Pratik P.]

Hello everyone,

I couldn't find the answer to my specific question anywhere else so I was hoping fellow BP'ers could help me out!

I'm looking to team up with an active RE agent so that when I make an offer for a property, I can say "We can offer you X cash or list it for you at Y". If it turns into a listing, I would like to have my agent list it and split the commission he makes 40/60 (or something) with me since I got him the listing with my marketing. 

The question is, if my license is inactive (no broker association), can he still split the commission with me or do I have to be active as well?

[Ivy Wang]

In CA, it's illegal to split any portion of the commission unless you are an active agent with your license hung at a brokerage. If you were active, it would then be considered a referral fee/split. Since you are inactive, you would get paid a "Finder's Fee" (legal in CA), up to $500 or a "Thank You gift" of up to $25.