Referral fee

[steffb503]

Not sure if this is the right place to ask but hopefully some can answer or direct me. NY State. My husband and his sister own property together. They want to sell. Sister in law is a real estate broker in another state. She and her agency want a referral fee. Seems to me she is just trying to get more money.
Can the agency listing the property simply say no to the referral fee?

 

[Zigner]

Not sure if this is the right place to ask but hopefully some can answer or direct me. NY State. My husband and his sister own property together. They want to sell. Sister in law is a real estate broker in another state. She and her agency want a referral fee. Seems to me she is just trying to get more money.
Can the agency listing the property simply say no to the referral fee?

I'm sorry, but this is really not your matter to deal with. I would suggest that your husband seek out his own answers.

 

[adjusterjack]

Can the agency listing the property simply say no to the referral fee?

Sure.

Then the sister-in-law takes the buyer elsewhere.

 

[LdiJ]

Sure.

Then the sister-in-law takes the buyer elsewhere.

The sister in law just wants a referral fee. Unless the sister in law actually referred the buyer to the listing agent, she wouldn't be due a referral. Unless the buyer is an investor, its unlikely that the buyer would buy a different home (or the sister in law would even want to nix the sale) in order to take the buyer elsewhere.

 

[xylene]

Has she listed the property? Has she done any marketing of the property?

I'm uncertain why she would be entitled to a referral fee just for being a real estate broker who owns (a share of a) property.

 

[adjusterjack]

My husband and his sister own property together. They want to sell. Sister in law is a real estate broker in another state. She and her agency want a referral fee. Seems to me she is just trying to get more money.

I seem to have overlooked the part where the sister/RE broker is a co-owner of the property.

Your husband can't sell the property without her consent and signature. She has the leverage to charge him whatever amount she wants above a 50% split, up to the moment that your husband files a partition lawsuit to force the sale of the property.

Call it a referral fee or whatever you want, your husband has to decide which costs less, paying her what she wants or paying for a partition lawsuit.

 

[quincy]

Did the sister-in-law refer (through her office) the property to the real estate agency that will handle the listing?

A referral fee is generally a minor amount of money and the sister-in-law could decide to sell the property through another agency if a referral fee is not paid.

The fee comes out of the commission the property owners will be paying to the real estate agents (often 6% of the sale price - 3% to the selling agent and 3% to the listing agent).

In other words, it costs the brother nothing more if his sister gets a fee for referring the property owners to the real estate agency. The sister just walks away with a little extra, and the real estate agency walks away with a little less.

 

[steffb503]

I'm sorry, but this is really not your matter to deal with. I would suggest that your husband seek out his own answers.

Well some husbands and wives discuss things. Not all husbands like using computers! If you must know, my husband has issues with his hands and typing is difficult. but thanks for giving a useless response!

 

[steffb503]

I seem to have overlooked the part where the sister/RE broker is a co-owner of the property.

Your husband can't sell the property without her consent and signature. She has the leverage to charge him whatever amount she wants above a 50% split, up to the moment that your husband files a partition lawsuit to force the sale of the property.

Call it a referral fee or whatever you want, your husband has to decide which costs less, paying her what she wants or paying for a partition lawsuit.

they have a written agreement on the split already. She wants to sell, that would not bean issue.

 

[steffb503]

Did the sister-in-law refer (through her office) the property to the real estate agency that will handle the listing?

A referral fee is generally a minor amount of money and the sister-in-law could decide to sell the property through another agency if a referral fee is not paid.

The fee comes out of the commission the property owners will be paying to the real estate agents (often 6% of the sale price - 3% to the selling agent and 3% to the listing agent).

In other words, it costs the brother nothing more if his sister gets a fee for referring the property owners to the real estate agency. The sister just walks away with a little extra, and the real estate agency walks away with a little less.

No she has done nothing in regards to referring anyone. I understand what and why she wants a referral, I was wondering if it was a requirement and if my husband could instruct his realtor to simply not agree to one.

 

[LdiJ]

No she has done nothing in regards to referring anyone. I understand what and why she wants a referral, I was wondering if it was a requirement and if my husband could instruct his realtor to simply not agree to one.

He could, and then the sister could refuse the sign any purchase agreements or closing documents. Whether or not she would actually do so depends on whether or not she actually needs the money from the sale of the house.

 

[quincy]

No she has done nothing in regards to referring anyone. I understand what and why she wants a referral, I was wondering if it was a requirement and if my husband could instruct his realtor to simply not agree to one.

I guess your husband has to decide if he wants to make this an issue with his sister that potentially kills his ability to sell the house.

If both homeowners want to sell, the payment of a referral fee seems an awfully petty matter.