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can a real estate broker in Manhattan pay my own LLC a substantial referral fee for introducing a buyer?

I have a foreign investor, I am not a licensed real estate person myself, I do however own an LLC which I am hoping will allow me to capture part of the commission.
Thu May 8 2008, 21:14 - New York - Home Buying - 5 answers
 
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Patrick Ra...
Buyer & Seller
in New York
Patrick Ra..., Buyer & Seller in New York in New York
Answers (5)
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Adam Waldman was FIRST TO ANSWER
Legally, no. If they are offering to do it on the sly, know that deposits and and withdrawls of cash over $2500 are now being reported and anything you do via wire transfer or check can be easily traced and caught.

Mon May 19 2008, 12:45
 
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one thing repliers did not ask - are you an attorney? If so, you can accept a commission. Also, if you are not an attorney but have one perhaps a deal can be worked out with him or her and the attorney can pay you a salary.

Wed May 14 2008, 13:49
 
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Hmmmmm.......Ouch Patrick, how did I miss this one?

Tue May 13 2008, 19:42
 
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Adam is correct. One additonal note...... The referral fee must be paid to a broker, as Adam stated. A broker can only pay a commission to a licensed agent. A broker can pay a salary for services rendered, but cannot pay commisisons, referrals, or finders fees unless an agent is licensed under that broker.

Fri May 9 2008, 04:42
 
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FIRST ANSWER
Patrick,

Referral fees can only be paid to licensed real estate brokers. Even if you were a real estate agent, which you said that you aren't, the fee would have to go to your broker and then be split with you. While the fee can ultimately be paid to an LLC (if an agent owns one), this is only possible if all owners of the LLC are licensed New York real estate agents. If you were to receive a referral fee, it would be a RESPA violation.

Fri May 9 2008, 04:00
Web Reference: http://www.hud.gov/offices/hsg/sfh/res/respamor.cfm
 
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