Question 5. Can the receiving broker withhold payment of the referral fee until the origination brokerage has filed a completed IRS W-9 form and a copy of the Origining Brokerage real estate license? This form is used by an agent if he agrees to receive a fee to be paid by another broker for the referral of a person who requires the services of the other broker and his agents to document the identity of the person expelled and the terms of payment of the referral fee. A3. Yes. Origining Brokerage has the opportunity to consult the final settlement/closing statement in order to confirm that the amount of the referral fee is correct. However, any confidential or sensitive personal information that appears on the return may be blacked out before being passed on to the original brokerage. A1. Disclosure of the Brokerage Firm Code and agent code is required to facilitate the payment of referral fees by identifying the corresponding branch and agent. A7. The receiving broker must confirm that the offeror brokerage has a real estate licence. Since origination brokerage fees may be allowed in countries other than Arizona, credit brokerage can ensure that payment of referral fees is legal when the original brokerage makes a copy of its real estate license. Thus, the Broker Referral Fee Agreement in writing serves as proof of the agreed terms for the payment of the recommendation fee earned, which may not be fully clarified in an oral agreement or, worse, forgotten later. The expelled broker does not receive any additional fees for transactions made by the potential client recruited through the services of the other broker.
In addition, after the transfer, the expelled broker and his agents do not carry out any activity justifying a fiduciary duty to the potential client. Their participation is limited exclusively to the intermediation of the interested party. As a result, a provision in the referral fee agreement states that the expelling broker will not advise the potential client or participate in negotiations with him. A4. The working group considered a standard duration of six months or a year, but ultimately decided to leave it to the licensees, as they are in the best position to know what a reasonable period of time is for the proposed transaction. However, the agreement provides that intermediation fees are paid regardless of the closing date, as long as the contract or lease is performed during the term. In the first section of the Broker Referral Fee Agreement, the agents involved in the recommendation are identified as referendum and recipient brokers, as well as their associated Licensees. It also designates the potential client as either a: as agents best serve certain clients, it involves referring them to another broker or agent that they know is capable of providing the brokerage service the client needs….