Are referral fee agreements necessary?

2 Replies

Greetings everyone! Last night an agent forwarded a property to me via email she's attepting to move quickly due to foreclosure. I'm unable to purchase (brand new to wholesaling) however I have a few buyers who would be interested based on her numbers (asking price and ARV). I was half way through my response to negotiate a referral/finders fee when I thought I may need an agreement in black and white for this. My instinct, being that this is business says of course! Also I'm sure this may vary state to state or based on relationships. I'm in Washington DC so I want to also ensure I'm conducting business lawfully as well. Any insight, best practices, or rules if thumb you can share on this area would be greatly appreciated! Respectfully, Rob

This sounds very very familiar. Property in Petworth? If so, I cant imagine why youd let a client buy that disaster.

But yes, referral agreements should be in writing.