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Splitting referral commission?Question:Splitting referral commission? Is it legal to split a referral fee with a non-agent for referred business that closes? Either as a flat fee or a percentage? I was interested in doing some referral work but am not yet licensed in Texas. Read the Answers | Post Your Own Answer Ask Your Own Question...
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 | Although I have heard lawyers claim that you can, in Texas a real estate commission or referral fee can only be split by agents according to the Texas Real Estate Commission (TREC). Lawyers or others involved in a real estate transactions can charge a fee, but this needs to be established between them and the client. They cannot take any percentage of the sale. |
 | Below you will find The Rules of the Texas Real Estate Commission regarding referral fees: §535.20. Procuring Prospects. [Adopted January 1, 1976. Amended October 21, 1997; April 14, 1998 and August 25, 1999; Ref: §1101.002(1)(A)(ix)] (a) Referring a prospective buyer, seller, landlord, or tenant to another person in connection with a proposed real estate transaction is an act requiring the person making the referral to be licensed if the referral is made with the expectation of receiving valuable consideration. For the purposes of this section, the term valuable consideration” includes but is not limited to money, gifts of merchandise having a retail value greater than $50, rent bonuses and discounts. (b) A person is not required to be licensed as a real estate broker or salesperson if all of the following conditions are met. (1) The person is engaged in the business of selling goods or services to the public. (2) The person sells goods or services to a real estate licensee who intends to offer the goods or services as an inducement to potential buyers, sellers, landlords or tenants. (3) After selling the goods or services to the real estate licensee, the person refers the person’s customers to the real estate licensee. (4) The payment to the person for the goods or services is not contingent upon the consummation of a real estate transaction by the person’s customers. |
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