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Question

I helped one of my clients get a lease option. The guy who leased it to him is in the business of these things and said he would try to set something up to repay me, like referrals, etc., because he was just helping out a neighbour, who couldn't pay much. He ended up sending me a check. It isn't much just several hundred. Should I take it to my broker and just take a percentage or do I keep it. I didn't know he was going to send me money, I thought he was just going to send referrals.

Any advice from an experienced realtors.

Answer 1

By law all commissions (expected or not) should go directly to your broker/agency. Your broker would then decide whether to charge you according to your agreed split, or whether you can keep the whole thing.

You must remember, that all work you do as an agent, you are doing in the name of your broker. That also means that any compensation received from clients is your broker's also.

Be honest, be ethical, talk to your broker and give him/her the check to dispose of as he/she sees fit. It may only be a few hundred dollars, but it could be an imeasurable amount of goodwill and esteem.

Answer 2

You are unclear as to who sent you the $$. Your client? The lessor? There was apparently no listing agreement with the lessor or promise to pay a commission, so this is not legally a commission, but more along the lines of a "thank you" gift which is common in business. The fact that the check was payable to you, not your broker, indicates the payor so considered it. If that is the case your broker has no legal claim. If the $$ was sent you by your client, it may be closer to a commission. Even if your broker is not entitled to the $$, if he were to find out about the payment from some third source, he may be upset. My suggestion would be to ask him the same question you asked us. He may say, "keep it." Or maybe not. In any event a couple of hundred dollars is nothing compared to what you may make off this guy over the years. I would not chance destroying a business relationship over it.

** Note: This is a general discussion of the subject matter of your question and not legal advice. Local laws or your particular situation may change the general rules. For a specific answer to your question you should consult legal counsel with whom you can discuss all the facts of your case. **

Answer 3

This is actually for Mikegs400, but may also apply to you, depending on the Real Estate Laws in your state. If you are a licensed real estate agent, you should know this.

Mike, you need to go back to class!!

§ 1101.651. CERTAIN PRACTICES PROHIBITED. (a) A licensed broker may not pay a commission to or otherwise compensate a person directly or indirectly for performing an act of a broker unless the person is:
(1) a license holder; or
(2) a real estate broker licensed in
another state who does not conduct
in this state any of the negotiations
for which the commission or other
compensation is paid.
(b) A salesperson may not accept
compensation for a real estate transaction
from a person other than the broker with
whom the salesperson is associated or was
associated when the salesperson earned the
compensation.

So, you cannot accept any compensation ($50.00 or otherwise) from anyone other than your broker--unless you don't want to be licensed very long.

Answer 4

What does your contract with your broker say? Does it leave you a way out? You need to weigh the risk to your job against the benefit of keeping all the money.

Answer 5

Send him a thank you note. If you know his birthday, send him a birthday card every year. Otherwise, a thank you note on Christmas or Thanksgiving day with a small gift basket will not only make him appreciate your efforts but get you more referrals thereafter.

Don't return the money cos it's for a job well done. :-)


Regards,

Edmund Ng
CEO, Founder
Infinique Technologies
http://www.infiniquetech.com
http://www.itjobs.com.sg
http://groups.yahoo.com/group/sg_it_jobs...
http://www.purchaseresume.com

***This is my signature. Not an advertisement.***

Answer 6

In tx you can only accept up to 50 dollars.