Legal
Q: Are COA's allowed to pay referral fees to anyone?
Tagged with HOA, HOA and COA, Legal, Liability,

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.



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Find Property Managers Near You
Select Property Type
  • HOME / CONDO
    • Single Home or Condo (Valued up to $300K)
    • Single Home or Condo ($300K to $500K)
    • Single Home or Condo ($500K to $1 Million)
    • Single Home or Condo (Over $1 Million)
  • APARTMENT
    • Multi-Family (2-4 units)
    • Multi-Family (5-19 units)
    • Multi-Family (20-99 units)
    • Multi-Family (100+ units)
  • HOA
    • Homeowners Association (2-49 units)
    • Homeowners Association (50-99 units)
    • Homeowners Association (100+ units)
  • COA
    • Condominium Association (2-49 units)
    • Condominium Association (50-99 units)
    • Condominium Association (100+ units)
  • COMMERCIAL
    • Retail (Up to 9,999 sqft)
    • Retail (10,000 - 100,000 sqft)
    • Retail (100,000+ sqft)
    • Office (Up to 9,999 sqft)
    • Office (10,000 - 100,000 sqft)
    • Office (100,000+ sqft)
    • Warehouse/Distribution (Up to 100,000 sqft)
    • Warehouse/Distribution (100,000+ sqft)
    • Light Manufacturing (Up to 100,000 sqft)
    • Light Manufacturing (100,000+ sqft)
    • Parking Garage
    • Biotech/Mission-Critical
  • SHORT-TERM
    • Vacation (1-2 units)
    • Vacation (3+ units)
  • OTHER
    • Other Associations (Hotel, Resort etc.)
    • Mobile Home Community