What is the typical referral fee paid and what form is used when referring a buyer for a commercial property?

In Buying Property - Asked by Rebekah H. - Dec 21, 2009
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Answer(s)

Amos P.
Broker/Agent
Fremont, CA

Typical agent to agent referrals are at 20-25% of the net earned commissions. But as in all business, it is up to an agreement at the time the stage is set. Referral from a friend or a client, is a measure of goodwill between the parties. If the referring party is happy with prior service, why expect a reward for a referreal which only provides the referred party with recommended good service? So, any gift by the agent is a measure of goodwill. Financial expectations and demands for referral better be declined. These often end in disagreement and discontent. By the way, the IRS recognises only a $25.00 as an allowed business gift!! I know, since I got audited and hit on these referrals.

Dec 22, 2009
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Robert B.
Broker/Agent
Arlington, TX

Here in TX it depends on the deal and the person referring the client. If a broker refers it is normally a % of the collected fee. I normally pay 10%, if it is not a broker or agent TX law allows a 50.00 maximum fee to be paid.

Dec 22, 2009
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Robert B.
Broker/Agent
Arlington, TX

Here in TX it depends on the deal and the person referring the client. If a broker refers it is normally a % of the collected fee. I normally pay 10%, if it is not a broker or agent TX law allows a 50.00 maximum fee to be paid.

Dec 22, 2009
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Jon E.
Broker/Agent
Cleveland, OH

I pay 25% of the commision on a normal deal. Ohio law does not allow payment to anyone but a licensed agent. If you need more info on Ohio rules just call me
Jon Eckerle 440-281-1944

Dec 27, 2009
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