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That should have been figured out, before the referral was given, not afterwards. As is often times the case in real estate, what do you have in writing? Congrats on your sale.
It is typicaly 25%. But, it should be off the top with your wife's broker. So, if the commission were $10,000 the referring party would be given $2,500 and your wife would receive $7,500 and the customary franchise fees and splits would be from that figure.
Brian L. Sirota, Esq.
25% is normal in this area. It should ahve been discussed, and put into a written agreement from the start. The broker not your wife should decide the split/distribution after the 25% is taken out.
Thomas Phelan 1. Referral fees are negotiable. 2. Broker fees are usually taken off the top of the commission earned. I think it's you.
She is obligated to pay EXACTLY what the referral agreement states.
It is not negotiable after the fact.
How your wife applies the fee will now depend on her contract with her broker.
All of this is spelled out in black and white in the documents your wife signed.
For your information 25% for the referring broker is more than reasonable, and actually generous on the referring side. You are looking a gift horse in the mouth. However, the arrangement she has with the brokerage is not the least bit generous. The 'good guy' in this scenerio is the referring attorney of whom your register dissatisfaction.
Leave the real estate stuff to your wife and you should focus on generating new leads and clients for her NOT directing how she should manage her business.
Discuss those things first.
Jeff nailed this one!
These are legitimate questions. Tom deserves a straight forward answer, not an uppity lecture.
That said, I endorse the answer given by Gabe Sanders. The most common arrangment is 25% off the top.
I agree with everyone here. You need to has that out before it gets signed.
25% is very standard. She would have had nothing if it was not for the referral. Never be greedy
Why isn't it your wife asking the question since she is a REALTOR® and must know the rules. I am skeptical as to why you are asking this question here.
Depends...In Minnesota we can't pay anyone except Licensed Realtors. I hae had Attorney's try and get me to pay a fee, but I tell them I can't. They are not real happy about it.
Otherwise, you always discuss fees right up front!
1. To state any "customary" figures would be in violation of anti-trust laws, so no comment there. The fee can be whatever is mutually agreed upon by the parties.
2. Your wife's firm is compensated with the referral fee. She is paid as any incoming commisison is paid (less broker's fees, etc..)
3. Yes, an agent working on a referral is usually getting less than they regularly do, but it is considered something rather than nothing. They would hope to give excellent service whereby the client would come back to them and use their services again.
Thomas Phelan She needs to 'bite the bullet' and not the hand that has 'fed' her. 25% is standard, and she might want to add a sit down over a cup of coffe when she hands over the referral fee to sow the seeds for additional future referrals.