Although not granted by the California Bureau of Real Estate (CalBRE) or accepted as members of a real estate trading association, researchers are authorized by state codes to request buyers, sellers, borrowers, lenders, tenants or lenders for transfer to real estate agents, real estate agents or contractors. Thus, as a profession, they provide guidance on who can participate in real estate transactions. If an agent sends a client to another agent, he should ask for mutual agreement. A reciprocal agreement requires that the two agents refer clients to each other for certain situations. A real estate recommendation contract exists between two (2) agents for whom a client is recommended by an agent to use another agent better suited to his needs for a fee. This is common practice when a client attempts to buy, sell or sell real estate outside the jurisdiction of an agent. In 1995, the Attorney General of California argued that a real estate agent could only pay a transfer fee to an un conceded person to the Department of Real Estate (Now Bureau of Real Estate) if the deporting person did not make the introduction on behalf of the clearing broker. (78 ops. callus. Conversely, an unauthorized discoverer does not have such a fiduciary duty to the public. The function of an « agent » of an « agent » is limited to requesting, identifying and expelling potential real estate agents by undertaking a tax to brokers, brokers or contractors. You`re Locators, period.
In California, the Bureau of Real Estate and California law allow a licensed real estate agent to pay a transfer fee for a real estate transaction to a person who has not received the real estate office`s license, only if the person who is to receive these fees does not claim on behalf of the real estate agent. In short, this « research fee » applies only if the unlicensed person is limited exclusively to the introduction of a seller, a buyer or both to a licensee. The caveat is that the « Finder » is not involved in the negotiations on the real estate transaction. Therefore, the written broker referral fee serves as evidence of the agreed terms for the payment of earned transfer fees that otherwise could not be fully clarified in an oral agreement or, worse, later forgotten. Recommendations in the real estate community are so common in offices are usually doing exclusive business together in some jurisdictions. It`s a great way for an agent to point a client in the right direction while charging a fee when a transaction occurs. In California, three classes of real estate agents were created: No. In most countries, the practice of agents paying a transfer fee or « research fee » is illegal, unless the person is a real estate agent or a licensed agent. Although a verbal agreement between brokers is fully applicable for a referral, a documented agreement clearly states that an associate licensee, whether a seller or an associate broker, carries out his real estate activities through the authority of their license, but always through their employment agency, as requested by his independent employment contract. [Bus – P C No. 10137; see Form RPI 506] Edward McCutchan is an experienced mediator and arbitrator who deals with private affairs as well as disputes with the State Bar royalty program between lawyers and their clients.