When is it legal to pay a finder's fee to a BirdDog?

By
Real Estate Services with Domination Marketing Solutions

I have read and heard so much conflicting information on this topic it is driving me crazy.  When is it legal to pay a finder's fee to a birddog?

Under what circumstances, can a licensed real estate agent pay a birddog a finder's fee?

Under what circumstances, can a person, who is NOT a licensed real estate agent, pay a birddog a finder's fee?

I have been told ~75% to ~25% that it is illegal to pay a finder's fee in Washington.  And, the only situation where it would be legal to pay a finder's fee is if the birddog AND the person paying the finder's fee are both licensed agents.

I have also been told, that if the birddog gets the property under contract it is perfectly legal, in all situations to pay an assignment fee an purchase the contract. 

Of particular interest is how this applies in Washington state.

There are many investors (licensed and unlicensed) that use property locators to find properties to invest in.  The intent is to find the properties for investing, not just to get a listing.

Thanks gang.

Mark

 

 

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Tags:
property locators
birddogs
finders fees
assignment fees
finding houses for sale

Comments 16 New Comment

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Anonymous #12
Anonymous
Sandy Williams

I'm a Birddog in Ca, but I brought a buyer and seller together in texas and I wanted to collect a finders fee. Is that legal??

November 07, 2009 03:42 PM
Rainmaker
54,205
Kathy Fisher
Realtor Wise County Texas
Parker Properties
The ONLY way a Licensed agent (REALTOR) can pay someone a referral fee is IF THEY ARE BOTH LICENSED AGENT'S! No other types of fees (BIRD DOG, FINDER'S FEES, WHATEVER YOU WANT TO CALL IT) ARE LEGAL!
November 08, 2009 06:14 PM
Anonymous #14
Anonymous
L Piper

Hello Guys so what your saying if im birddoging for an investor im (GOOD*LEGAL) ?

February 01, 2010 09:12 AM
Anonymous #15
Anonymous
Neotrac

So, all agents and brokerages in Texas cannot pay for advertising...is this true?

If you indeed can pay for advertising, then I guess you can't pay your advertiser based on their performance  (i.e. for ACTUALLY getting a potential client in front of you)...surely not!

So, if I am an excellent internet marketing person and can drive tons of prospects into your office...you can't pay me to do it?

 

March 07, 2010 03:47 PM
Anonymous #16
Anonymous
John Clasen

Hazel L, I am having trouble accessing avivarate.com, can you send me a link?

Thanks, John C

jrc411@verizon.net

January 31, 2011 06:21 PM
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Rainer
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Mark Schwartz

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Additional Information

How to use the Internet as a Real Estate Business Enabler and dominate the search engines for your niche or area.

Hi, this is Mark Schwartz, Builder of Blog and Social Networking Spider Webs for businesses and internet entrepreneurs. I am also a real estate professional so I know what it takes for you to succeed in this competitive business.

Throughout my life I have spent years working on some type of marketing endeavor. I must say, that I thoroughly enjoy all the challenges and thrills of being a professional marketer. Most of all, I appreciate all the many great friends I have made throughout the years.

It is my belief that every business owner needs to develop a strong presence on the Internet in order to promote their brand, prosper and maintain profitability. If you are a business owner, it is a matter of survival for you to get your web site and blog in the "top rankings" of the major search engines like Google, Bing and Yahoo. If you are not on the first page of the search results you do not exist.

And to assist website owners get the traffic they need to survive, I provide a variety of marketing services. Primarily, I build Blog and Social Networking Spider Webs for business owners so they can increase traffic to their business website(s).

In the past, I have worked with numerous companies in product marketing, product development and in launching a number of startup businesses. My view and passion is that technology is the great business enabler and it allows any business owner the opportunity to successfully compete in this crowded world. There are opportunities everywhere, and magic happens to those who take action.

I have been blessed with a wonderful wife and three girls and live in the foothills of the Cascades, just east of Seattle.

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