They get their 25% on the listing side only. The fact that you brought the buyer to your listing has nothing to do with them. If you didn't bring the buyer, all they would be entitled to is just the listing side. So, it is the same thing whether you brought the buyer or not, they only get the commission on the listing side.

Hi Susan- If you are being referred a listing client, then 25% of the listing-side commission is awarded to the agent's company referring the client. Regardless of whether you have brought your own buyer or a competitive broker brings a buyer, the referring agent and their broker are not entitled to a piece of the buy side commission. As a realtor, you are always negotiating. And if a referring agent presents you with a a referral fee of 35% and for both sides, come back with 15% and one side (with the one side being non-negotiable). Try and set your limits at 25% of the listing side, but of course check with your broker on their internal policies. To try and get both sides is a bit bullish and does not generate good will for your making referrals back. After all, a good referral goes miles, but double dipping for someone who is not doing anything more than passing a name is just not a fair business practice.

Just like with anything else it all depends on what your signed agreement says. In my local area it would be typical to receive 25% of the gross commission on the listing side only. I would speak to your managing broker.

I have never heard of a referral agreement like that & I have been selling real estate for 23 years. Typically in my past experiences the referring broker gets a referral fee off the top.So if it is a listing referral & they are getting 25% of the listing fee & lets say the 3% fee = $10,000 they would be entitled to $2500. Unless they are providing you with a buyer lead for this listing you should not be obliged to give them anything from the buyers side. Corporate fees usually are taken off the agents end not the referring broker. However if this a corporate referral is from a relocation company , the referring agreement may be different & many 3rd party companies have different stipulations & additional fees. If this is the case ask to see a copy of their referral poilcy before accepting the listing lead.

If you are a licensed agent, consider discussing the issue with your broker owner and or office manager.

A typical referral stipulates the terms and duration of the same. If you've been referred a seller, typically you will commit to the other referring agent a percentage of the total listing side of the commission. So if your company's typical commission to list a house for sale is 4 percent, (example), you will pay a percentage of that, e.g., 25% of 4 is 1. So, if you want to put this in dollars and cents, if your 4 percent listing commission generated $8,000 you will then give the referring agent/company/broker $2,000, and that company will handle the incoming fee in whatever way their internal policies dictate. As for getting referral from other sources of the same client referred, that is nothing uncommon (for the other agent to ask), but it also isn't something you need to negotiate or commit to as the main point of the business being referred would be on the first level -- the listing, and nothing more. Be sure to clarify that at the onset, however.

J. Mario Preza, CRB
415.850.4361
home4less@hotmail.com
DRE 00668667

YOU ARE BEING RAILROADED. If you signed a referral agreement with that in it - you're getting ripped off.

A few things - you're an agent at a company...i know the company - that steals...i mean charges a 6% fee off the top. I don't know how much business you do - but that 6% adds up to a lot - fast.

And on top of that - you're probably at a 50/50 split. Ouch. Talk about making no money.

How does 90% sound? See the link - email me

Also - what's even more disturbing is you have to post this question on Trulia? Where's your office manager who's getting PAID by the sweat of YOUR brow? They should absolutely be able to answer this question and make sure you don't sign a foolish agreement that has these terms in it.

Who ever is telling you this - is trying to rip you off. If you and your manager allowed you to - sign a referral agreement like this - that's just inexcusable.

The 6% though - on the listing side ONLY - does not apply to them. That I think is fair.

If you accepted a listing referral, then your company is paying a referral for the listing. Unless otherwise specified in the referral agreement, the buy side is your company's.

It depends on what your agreement says... hopefully you got the referral agreement in writing? Our standard California agreement (CAR Form RFA-11) says the split is based upon the gross, not taking into consideration any franchise or office fees taken off the top or expenses incurred by the agent to market the property, close the transaction, etc. This agreement is also based upon referral of a principal to the agent, therefore the commission split is earned for compensation resulting from service to a particular person. There is an "Other Terms" line that allows the brokers to add the buyer side to a listing referral, so both sides could be subject to the split. If you haven't shared this agreement with your broker, you should do so immediately.

A listing referral of 25% typically will be 25% from the listing side of the transaction. I believe that if they are looking for more then that, have your broker or manager get in touch with the agency. Please understand, the details of each listing, through a referral, is to be negotiated by the two agents or agencies. I have in the past, not accepted all referrals. It is up to you to decide if the terms of the referral are acceptable.