Updated almost 5 years ago on . Most recent reply
Can I get a finder's fee for bringing a deal to a CRE broker?
I have a friend (buyer) from out of state who wants to make a large purchase (mutli $MM) in Commercial Real Estate. I know of a competent CRE broker, so if I bring this buyer to to this broker, can the broker pay me a finder's fee or any other form of monetary compensation legally in Texas? I would expect that this buyer will bring recurring business to this broker as he is an active investor and I do feel that the broker should compensate me.
Is there a legal way to do this?
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#2 Real Estate Agent Contributor
- Real Estate Broker
- Coppell, TX
An unlicensed person referred business to me. Can I pay him a fee in return?
You may give an unlicensed person a non-cash gift worth $50 or less in exchange for a referral and not violate The Real Estate License Act (TRELA) or Texas Real Estate Commission rules. According to TRELA, if a referral is made with the expectation of receiving valuable consideration, the person making the referral must be licensed under the act. Under Section 535.20 of TREC rules, gifts of merchandise having a value of $50 or less do not count as valuable consideration.
A bank gift card that can be converted to cash or credit or any amount of cash or credit toward rent owed are not allowed to be used as gifts to an unlicensed person in exchange for a referral, according to TREC.