Christian Coppieters

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Rainmaker
945,356
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Unauthorized consideration = paying a commission to an unlicensed person. No way to justify this.
Finder's Fee = can be allowed under certain circumstances. Example: In AZ, a finder's fee may be paid to a tenant who brings in another tenant. HOWEVER, it must be in the form of RENT CREDIT and may only be paid so many times in a calendar year.
In no instance will you find it allowable to pay an unlicensed person cash money.

Feb 17, 2017 03:31 PM
Rainmaker
1,708,245
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Don't give money to people you shouldn't give money to.

Feb 17, 2017 03:23 PM
Rainmaker
1,466,027
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Christian Coppieters There is no difference. It is illegal to pay anyone a fee if they don't have an active real estate license. Finder's fees or bird dog fees are illegal and can result in the agent losing their real estate license.

Feb 17, 2017 03:22 PM
Rainmaker
4,384,925
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Listen to Michael Setunsky ..truth!!

Feb 17, 2017 05:58 PM
Ambassador
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Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

I haven't heard of unauthorized consideration. Michael Setunsky has your answer. Good luck wtih your studies

Feb 17, 2017 04:37 PM
Rainmaker
808,903
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

I'm not familiar with the term unauthorized consideraton, but what Michael Setunsky said.

Feb 17, 2017 08:53 PM
Ambassador
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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

What Candice A. Donofrio said holds true in North Carolina also but, I'm not sure about Utah.

Feb 17, 2017 08:33 PM
Ambassador
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Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

I have never heard the term unauthorized consideration. I do know in TN you cannot pay a finder's fee to anyone who does not have a real estate license.

Feb 17, 2017 04:02 PM
Rainmaker
1,558,289
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

Finder fee is like a gift, you do not have any obligation to pay, but if the seller agrees to pay an unlicensed person, the agreement is between them, if you pay a finder fee more than an amount allowed in your state ~ well, you already know the answer, it is illegal, read RESPA.

Yet, i still do not understand why it is ok to pay thousands of $$$ for leads to companies that obviously do not have a RE license. 

In other words, if you pay for service of providing you a referral,it is ok seems...

 

p.s. just my personal opinion, no legal advice or suggestions in here. . 

Feb 18, 2017 07:19 PM
Rainmaker
2,150,212
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Not a licensed real estate agent = No Fee.

Feb 18, 2017 01:28 PM
Rainmaker
915,618
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

We do like providing insight to those going through the process.

WE like it even more when the communication is two way. Acknowledge those who have raised their hand in response to your question.

Better still, tell us more about yourself. Are you currently a home owner?

Feb 18, 2017 05:35 AM
Rainmaker
3,070,984
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Candice A. Donofrio nailed this one!

Feb 18, 2017 02:35 AM
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Christian Coppieters - unauthorized IS unauthorized.

Against the code of ethics to do that.

Feb 17, 2017 10:57 PM
Rainmaker
1,357,266
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

No license, no fees.

Feb 17, 2017 08:43 PM
Rainmaker
3,986,000
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Both are illegal. 

Feb 17, 2017 07:59 PM
Rainmaker
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Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Christian, You have great answers from every member here. A

Feb 17, 2017 04:06 PM
Rainmaker
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Dave Martin (703) 585-4687
Fairfax Realty - Fairfax, VA
Making Realty Dreams a Reality #WeWillGetYouHome

I've gone back in time to answer old posts just because I want to see if anyone reads old questions... if I get no LIKES I will assume they don't and stop reading them lol

Feb 09, 2018 07:46 PM
Ambassador
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Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

not much of a difference.

Apr 15, 2017 11:26 PM
Rainmaker
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Roy Kelley
Retired - Gaithersburg, MD

Follow the rules in your state.

Feb 19, 2017 05:51 AM
Rainmaker
849,092
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Legality

Feb 19, 2017 04:39 AM
Rainmaker
1,430,201
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Finder's fees are limited to X amount of dollars.  It varies by state.  Let's say for example you are limited to a $100 finder's fee.  Taking them to dinner would be fine (so long as their portion is under the $100 limit).  Concert tickets, movie passes a gym membership, cookies all fine if under the $100.  Give them a penny you found on the street with the $100 check, that's illegal and not authorized by the state.

 

Now for California (guess what, it's legal):

From an undated CRES E&O insurance (reputable source) article on the subject, written by a lawyer, at https://www.cresinsurance.com/allowable-referrals-commission-splits-california-real-estate-transactions/

 

In California, the Bureau of Real Estate and California law permit a licensed real estate brokerage to pay a referral fee for a real estate transaction to a person not licensed by the Bureau of Real Estate, only if the person who is to get such a fee was not soliciting on behalf of the brokerage. In short, this “finder’s fee” only applies if the unlicensed individual is solely limited to the introduction of a seller, buyer or both to a licensee. The caveat is that the “finder” is not involved in any negotiations as to the real estate transaction.

In California, a “finder’s exception,” allowing an unlicensed person to be compensated for introducing parties to a real estate transaction, has been judicially approved since 1923. As explained by California’s  Supreme Court in Tyrone v. Kelley (1973) 9 Cal.3d 1.

“Numerous cases have held that one who simply finds and introduces two parties to a real estate transaction need not be licensed as a real estate broker. Such an intermediary or middleman is protected by the finder’s exception to the real estate licensing laws, an exception first established in Shaffer v. Beinhorn (1923) 190 Cal. 569, 573-574. In that case, this court held that a person who contracted to introduce a seller to a prospective purchaser did not act as a broker but as a finder. Many subsequent cases have recognized the exception.

“The finder is a person whose employment is limited to bringing the parties together so that they may negotiate their own contract, and the distinction between the finder and the broker frequently turns upon whether the intermediary has been invested with authority or duties beyond merely bringing the parties together, usually the authority to participate in negotiations.” (Ibid. at 9).

In 1995, California’s Attorney General issued an opinion that a real estate broker can pay a referral fee to an unlicensed person with the Department of Real Estate (Now Bureau of Real Estate) only if the referring person did not make the introduction on behalf of the compensating broker. (78 Ops. Cal. Gen. 71).

Custom and practice in California real estate is that a referral fee to a non-licensee with California’s Bureau of Real Estate is no more than five hundred dollars ($500.00) per completed transaction.

Feb 18, 2017 11:50 AM
Rainmaker
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Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West - Carlsbad, CA
Presence, Persistence & Perseverance

As Candice A. Donofrio wrote

Feb 18, 2017 11:36 AM
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Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

For which state? I can only speak for the state I am licensed in.

Feb 18, 2017 10:54 AM
Ambassador
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Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

I have never heard the term "unauthorized consideration".  It does have a ring of unlawful.  Be very careful moving forward to know what you need to know being licensed in your state.  Doing the wrong this is not worth losing your license or going to jail.  Ignorance is not a defense.

Feb 18, 2017 09:24 AM
Ambassador
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Harry F. D'Elia III
RentVest - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

ask the teacher

Feb 18, 2017 09:20 AM
Rainmaker
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Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

unlicensed people should not be paid fees....period....

Feb 18, 2017 08:08 AM
Rainmaker
4,799,732
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

They can be the same, but one can be OK in the right circumstances.

Feb 18, 2017 06:20 AM
Rainmaker
399,848
Shirley Coomer
Keller Williams Realty Sonoran Living - Phoenix, AZ
Realtor, Keller Williams Realty, Phoenix Az

If you aren't licensed, I can't give you a referral fee.  A coffee at Starbucks, but no referral fee!

Feb 18, 2017 06:11 AM
Rainmaker
4,565,859
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Candice hit the nail. Check State law on certain finders fee which are allowed 

Feb 18, 2017 05:37 AM
Rainmaker
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Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Here in NH it is easy, you can not pay anyone who is not licensed any more than$50 no matter what you call it

Feb 18, 2017 04:50 AM
Rainmaker
4,488,773
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

I hve no idea... I have never heard the term unauthorized consideration. Paying anyone who is not licensed is illegal, period, end of story. Who cares what you call it.

Feb 18, 2017 04:22 AM
Rainmaker
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Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Others have answered 

Feb 17, 2017 07:19 PM
Rainmaker
864,358
Les & Sarah Oswald
Realty One Group - Eastvale, CA
Broker, Realtor and Investor

One can't solicit to pay a referral fee, however, one may pay for a lead. 

Feb 17, 2017 06:54 PM
Ambassador
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Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

 I don't know.

Feb 17, 2017 06:40 PM