Blog by Andrew Peck

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"What are the legalties on giving a finder's fee?"

"What are the legalties on giving a finder's fee?"

"Would you enlighten me on the legality of giving a finder's fee to friends, relatives and the general public who have successfully found you a buyer/seller?"

The Real Estate Services Act does not stop a Realtor or the real estate brokerage from paying a referral fee to any individual provided that the person being paid is not undertaking the services that require a license. Generally making a referral of a potential client is allowed, provided that the unlicensed person is not cold calling or door knocking for contacts. Such prospecting activity requires a license. When a friend tells you about a person they know who might need the services of a Realtor, the referral fee is quite natural. 

The other issue is the disclosure of remuneration. As the referring party is not your client any referral fee paid to them must be disclosed to your client. The agency relationship requires you to disclose anything that might affect or influence that client’s decision and that includes paying a referral. In other words, if a buyer is referred to you and you agree to pay a 20% referral, you must

Is our housing market at risk?

May 31st, 2017
Is our housing market at risk? Today, the International Monetary Fund reported that Canadian households are highly indebted and housing affordability, particularly in Vancouver and Toron...Click here to read more detail about 'Is our housing market at risk?'

Moving towards a National Housing Strategy

May 1st, 2017
Moving towards a National Housing Strategy The Canadian Real Estate Association and its member real estate boards and associations across Canada have long advocated for better access to ...Click here to read more detail about 'Moving towards a National Housing Strategy'

What are the key challenges we face as a profession?

February 18th, 2016
What are the key challenges we face as a profession? If someone were to ask me what one characteristic Realtors® share, I'd say - adaptability.  Take a minute and think about i...Click here to read more detail about 'What are the key challenges we face as a profession?'

Will a luxury or speculation tax create more affordable housing?

February 2nd, 2016
Will a luxury or speculation tax create more affordable housing? In the last month, both the Mayor of Vancouver and economists from the University of British Columbia and Simon Fraser Un...Click here to read more detail about 'Will a luxury or speculation tax create more affordable housing?'