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Working
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I had a realtor pull that crap on me. I told him to go blank him self. No idea if it's legal or not.
If you do do it send them a 1099 at the end of the year.

Cole
 

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I think the realtor is out of line, if that fee is going to lower your profit for the job. It is one thing to say before you produce your quote, "you know I will be due a fee of $X if this job goes forward, because without me, you would not be here."

But it is quite shabby of that realtor to hit you with this afterward. If that is what happened, voice your objection, and do it strongly, and in person.
 

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That's a new one on me!!!

:eek: I never heard of a written 5% referral fee.

I think I might get a little bit rude with that lady.
Did she spring this on you before or after you gave your price to the customer?

If you knew before you bid--fine.

If she put her hand out after you bid the job--to late to make up new rules for the game.

She sounds like a piece of work--Good luck--MIKE--
 

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I would contact your states government office on licensing Realtors and ask them if it's legal. If it's not I would throw her under the bus. For the amount she's asking for it sounds like a "kick back" to me. Now if she was open about it up front and is also operating as a lead generator then that would be different. Sounds to me like she's just greedy
 

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Nest Home Improvement
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890 Posts
Is it legal? Probably yes.
Is it unethical? Probably yes. Check with your local realtor board.
Do you want to continue doing business with her? Your choice however how much work are realtors getting these days?
 

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this sort of thing is pretty common around here. going rate is 10%. and yes, she would be due a 1099.
 

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I received a job from a realtor that just sold a apartment unit to her client, she now wants a 5% refferal fee in writing (seperate from the contract) paid at the end of the job.

note: I am assuming the client does not know about the 5%

Is this legal?
Its legal for her to ask you to pay her 5% or whatever she wants. She can ask for anything she wants. Theres no law that says you hafta agree to anything she asks:laughing:. Personally I'd tell her to **** in one hand and want 5% with the other and see which one fills up first:w00t: But yeah dont expect to get any more jobs thrown your way from her unless your the only guy they can count on:laughing:. I dont do kickbacks for anybody...It's not a referal if you pay for it...its a service sold to you.:thumbsup:
 

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If she is acting as the owners agent & signing your contract I'd saw you're stuck paying the 5% if you want the job. I'd put the additional 5% in a new contract, if she doesn't go for that tell her to pound sand.

She's all ready getting commission on the sale, sounds like a slimeball to ask for more.
 

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Average Joe
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I don't know how it is where you live, but here in Toronto we have the T.R.E.B. (Toronto Real Estate Board) and they are the licensing/monitoring association of all Realtors/Agents/Etc.

In their own Policy and Ethical Guidelines, it is not acceptable practice.

I imagine this would be a Universal North American standard.

Agents cannot receive compensation for a referral unless it is disclosed to their client, they could lose their license for doing this.

I would assume that the realtor is not disclosing this to the client. Therefore, your written agreement and later compensation for this referral can become lucrative blackmail...if you so choose;)

I personally have no qualms against these deals. They get you the job, without them there would be no job, you pay them. Consider the 5% as the cost that you would have to put into advertising just to get a similar job. Everybody wins. She refers, you do a good job, client happy, you happy, realtor has an incentive to send someone else in the future. Asking for paperwork is strange though, because it's to her detriment to have a paper trail. Realtors I do similar dealings with, I pay them out when the job is done, discretely (they have to trust that I will pay them), but once you do trust is gained and you build a relationship.

A network of realtors can provide steady work, yeah you take a slight cut in profit, but you fill in the gaps and that is very crucial to every business.

This is business, don't take it personal :thumbsup:
 

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Zimmermann
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328 Posts
If she is acting as the owners agent & signing your contract I'd saw you're stuck paying the 5% if you want the job. I'd put the additional 5% in a new contract, if she doesn't go for that tell her to pound sand.

She's all ready getting commission on the sale, sounds like a slimeball to ask for more.
Most likely 10-15% of the sale.
Some peoples greed.:rolleyes:
 

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5% sounds resonable... some Chief Engineers I've delt with get a kick back from the general contractor for any major jobs in "their" building... right/wrong doesn't matter, it's the way things are done.

You want work? be willing to pay for it either with sweat or cash... it's just business.

Think about it, this person has an incentive to find you work, and if (s)he does often, then its well worth it.
 
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