Referral Fees . . . posted by your Broker

Hi Team;

I encountered something that really bothered me a few weeks ago, more than most of the issues we deal with, because it has to do with personal integrity.

We often have the choice between doing the right thing, or trying to find a loophole, a “technical” out. This particular issue is about referral fees.  So here we go:

When you get a lead from another licensed Real Estate associate you should be THRILLED to pay them a referral fee.  AND, If you are NOT interested in the referral, suggest someone else for them, and don’t accept the referral. That is the time to make the choice.

However, once you agree to accept it: Should you both confirm the referral?-YES.  Should put it in writing-YES.  Start with an email confirmation, and then put it on a referral form. (Referral Agreements are available to everyone on ZipForms)

Should you pay the fee anyway, even if for some reason the referral agreement fell through the cracks-which by the way is both parties error?…-Of course.

Its’ difficult for me to even process this situation, but we had an associate with us, who was doing everything possible to avoid having to pay the fee that was owed.  That associate is no longer with us.

After this issue arose, I thought I had better write on this topic to everyone, in all of our Market Centers.

Getting out of paying, or even TRYING TO get out of paying, because of some loophole is dishonest.  Saying you got the lead and “converted it”, so you don’t owe on it, is ridiculous. The job includes converting it to a listing or a sale, if that is the right thing for the client. It’s just so simple in my mind.

Last question: Does a referral fee ever expire?

Well, not in my book. I know the agreement to pay, might have an expiration date on it, but to me: NOT EVEN IN 10+ YEARS. (and I have paid some of those).

Not only was I thrilled to pay a referral fee when the first escrow closed, but I paid it on EVERY transaction after that, when I ever worked directly with that client going forward in years ahead. (I knew I didn’t “have to”) And, I got some very surprised phone calls, when the broker or associate got a check they didn’t know was coming, didn’t feel anything was due, wondering if their was a mistake.  Why would I do that?  Because I was SO VERY GRATEFUL for the honor of getting to do business with someone I would have never, ever, have been to able to work with if it weren’t for them. By the way…going forward my referrals increased dramatically from them and their friends.

I’m not saying you have to agree to going beyond the call of duty, like I did, I’m just making sure we do what we know is right, and we live up to what we agree to.

Please, let’s do the right thing, no matter what, even if you think you might be able to get out of it because of a technicality.  We are not people who try to find loopholes.

I know most of you feel exactly as I do.  This email is not to suggest otherwise. However, since I didn’t expect to have an issue with this, it made me see that maybe should re-express what our stance and culture is on “doing the right thing”.

I am hoping now, we will never have this issue come up again.

Have a WONDERFUL week friends!

And be sure let us know how we can help and support you best!

Gratefully,

Beverly Steiner