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Referral Fee for an REO...

Posted by Dianne Clayton on April 24, 2010 at 2:56am in Sample Title

I received an REO listing through ResNet. How exciting! Reading the listing agreement the company will pay 2.5 % to each side of the transaction, ok....

Read further down the forms, Occupancy Status, BPO, check... then read Referral...

Appears in order to get this REO listing & get paid 2.5 %, I have to sign & agree to Pay a 1 % of the Sales Price Referral Fee back to the company that is offering this listing.

Comments please...

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Replies

Eric Nguyen September 24, 2011 at 3:40pm

Take it. I received listings from Res.Net before. That means SA 2.5, LA 2.5, Res.Net 1. Congrats on your listing.
Mark Jenks September 22, 2011 at 3:58am

It's a normal practice. Typically a 6% fee with the am getting the 1% leaving 5 total to be split. Sometime you have to co broke at 3. Take it and good luck.
Kyle Whissel September 21, 2011 at 4:33pm

Which asset management company is it?
Laura Baron CDPE,SFR September 21, 2011 at 8:49am

It's common practice but I worry about whether this is a RESPA violation.
- C J Johnson, Broker/SFR/CRS/ABR > Laura Baron CDPE,SFR September 21, 2011 at 12:28pm
  
  No RESPA the AM Company is not the lender.
Dr. Marqueze D. Williams, Sr, NRBA April 25, 2010 at 2:44pm

This is common. I would take it. Just imagine if the company send you 30 at once. That would be awesome! Any who congrats on your listing and I hope that you get plenty more.
Sam Shueh April 25, 2010 at 5:48am

What you described is how it works. Just like "help you to sell" you need to get volume business to make REO a worth awhile business model. Bulk REO are given only to a few kings.... They have the connection and know how to deliver.
Crystal M. Bush April 24, 2010 at 2:13pm

A referral fee to the AM is common. They have to get paid too. It sounds like 2.5% to LA, 2.5% to SA, and 1.0%. However, I would verify the commission split with them.
Kimmie Hauver April 24, 2010 at 7:20am

Its not unusual for the listing broker tp pay a referral fee to the asset mangement company.
Steele V. Propp April 24, 2010 at 5:36am

You may want to clarify this. In most cases I have run into, it is a situation of a total of 6% commission with 1% going to the asset management company, and 2.5% to buyer and seller broker respectively. Otherwise, it is usally spelled out very clearly as to who gets what.