Referral partnership with an International Company

[Mark S.]

Hey !

As I have understood till yet, paying referral fees to a non real estate professional is illegal in the USA (in most of the states).

If company (or an individual for the matter) from outside the US would like to form a referral partnership with an agent/broker in the US, would it also be termed illegal?

Then what would be the best way of compensating the international company for the leads it passes to the US agent/broker ?

Thanks..

[Jake Kucheck]

Probably an important distinction to say that while it is certainly a RESPA violation to pay a referral fee to an unlicensed person, it is not illegal to pay for marketing. If you are receiving leads that you pay for, regardless of whether or not they close, that isn't illegal. I'm not sure if that's what you're doing, but that would be a way to operate within RESPA.