A real estate referral fee is a portion of a broker’s commission paid to a party that provided either a listing or selling prospect to that broker. Referral fee programs are commonly used to generate additional business and income for real estate practitioners, brokerage firms, relocation management companies (RMCs) and corporations. Referral fees can be paid only to another entity holding a real estate broker’s license, and can be generated on either the departure (selling), or the destination (buying) side of a move.
Properly structured referral fee programs are an accepted practice in the U.S. relocation industry.
After-the-Fact Referral Fees
Beginning in 1998, Worldwide ERC® initiated action to address the legislative and regulatory environment impacting employee relocations. In cooperation with the Association of Real Estate Licensing Law Officials (ARELLO), Worldwide ERC® developed a Policy Statement on the Timely Disclosure of Real Estate Referral Fees,