Real Estate Agent · Murrieta, CA · Member since 2017 · 9 posts · 0 votes
Hello,
Need help understanding broker to broker referral fee. My sponsoring broker is out of california and ive connected with a referral partner that works with Exp, that is based in Florida. In the contract I have to agree to in order to get the referrals, it states that they will receive the referral fee out of the "gross broker commission", then i will receive my portion based off the commission split that is in place with my sponsoring brokerage.
Generically speaking does that payout process sound correct and accurate when talking about referrals between a brokerages and individual agents?
Flipper · Mission Viejo, CA · Member since 2014 · 2k+ posts · 1k+ votes
1mo
@Alex Mandery that is correct. The brokerage must receive the entire commission and then pay you according to your split with the brokerage. The referral fee between brokerages is usually 25%, so if the property is sold at $1million and the commission is 3% then that would be $30,000, of that they would pay the brokerage $7,500. If your commission split with the brokerage is 90/10 then you would get $6,750.