Ask Elliott #11: Referral Fees

Elliott will answer any questions that you may have about the laws, rules or code of ethics. He never will divulge specifics of your name or company. Some questions will be posted here. Email your questions to askelliott@caplanschool.com.

I got a referral for a listing nearly two years ago. Given the market, the property did not sell, even with a number of price reductions. I nearly lost the listing on the last renewal, but with a lot of effort I got it relisted. Happy to say the property is now under contract.

The referring agent is now working for another agency and wants me to send the referral commission to her, presumably through her broker.

Question 1: Can my broke pay the referral fees to the new Broker?

Question 2: Do I really owe a referral fee since this is nearly two years and I had a very difficult time convincing the seller to re-list on the last renewal?

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