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Kim Chamberl…, Real Estate Pro in Chicago, IL

can IL agents pay a referal fee?

Asked by Kim Chamberlain, Chicago, IL Mon Mar 30, 2009

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Christopher is correct: definitely get some legal advice about it.

As for the prohibition in developer contracts, your attorney can help you to draft an addendum with the appropriate verbiage to override that prohibition.
0 votes Thank Flag Link Wed Apr 1, 2009
Dear Kim,

While I'm not trying to anticipate the purpose of the referral fess that you're describing paying, I'd suggest that you get some legal advice regarding the assignment of a real estate contract. Many developer contracts expressly prohibit assignment. Get some good legal advice before you proceed in any case. Good luck.

Sincerely,
Christopher Thomas
Broker Associate, Sudler Sotheby's International Realty
773-418-0640 (cell)
christopher.thomas@sothebysrealty.com
http://www.myagentchris.com
0 votes Thank Flag Link Wed Apr 1, 2009
Maybe you'll want to ask here...http://www.trulia.com/blog/jared_christiansen/2009/03/aren_t…

Easy Money it seems...Referrals for sale.. Are there different Fee amounts? Bought property but was whiney..$100... Didn't have a clue...$1000....
0 votes Thank Flag Link Wed Apr 1, 2009
Forget the referral fee. Another way to structure the deal to get what you're looking for--that will work nationwide--is to do this deal as a wholesale (aka assignment). Basically, what this means is that you'll put a property under contract at one price, and sell your rights to that contract to another buyer at another price--before closing.

Technically, this is a different deal altogether, because you're actually one of the principals of the deal.

The point is that your assignment fee will be the difference between your sales and purchase price. For example, if you put a property under contract to purchase for 100K, and agree to assign that to another buyer for 120K, then you'll get 20K (pre-tax) out of the proceeds of the closing.
0 votes Thank Flag Link Wed Apr 1, 2009
Dear Kim,

While it is not always technically or legally required, it is generally a very good idea to disclose to all parties in the transaction that a referral fee will be paid and to whom.

Good luck.

Sincerely,
Christopher Thomas
Broker Associate, Sudler Sotheby's International Realty
773-418-0640 (cell)
christopher.thomas@sothebysrealty.com
http://www.myagentchris.com
0 votes Thank Flag Link Wed Apr 1, 2009
Yes, but only to a licensed broker.
Web Reference: http://yochicago.com
0 votes Thank Flag Link Mon Mar 30, 2009
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