Q: Are COA's allowed to pay referral fees to anyone?
Does Alabama law allow apartment communities to pay referral fees to residents and/or real estate agents?
- Birmingham, Alabama
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The State Level
Referral or finder’s fees in residential sales or leasing may not be paid to an unlicensed person.
Only a licensee may receive compensation resulting from a real estate transaction and such compensation should be paid at the direction of the licensee’s broker.
If you’re with the association and someone is asking for a referral fee, here are some things you can do to protect yourself:
Obtain the referrer’s name, company name, license number and a written confirmation that their real estate license is active.
Keep a copy of everything in your transaction provider.
Author Bio
Writing about personal finance and investments since 1999, Jason Van Steenwyk started as a reporter with Mutual Funds Magazine and served as editor of Investors’ Digest. He now publishes feature articles in many publications including Annuity Selling Guide, Bankrate.com, and more.
