NCREC-Approved Electives

Can I Get a Referral Fee on That? and Other Money Matters


Description
I receive a lot of email and phone inquiries from brokers asking about how they can legally receive referral fees (or rebates or discounts) when they want to purchase or sell properties in markets outside their jurisdiction.

I also receive questions about other commission practices (such as fee-splitting) and whether or not non-traditional brokerage firms are operating lawfully.

Brokers also ask me if they are entitled to their commissions if buyers or sellers default on a sales contract and they want to know if they have to pay out-of-state brokers referral fees.

Brokers want quick answers to these pressing questions, but the answers are very nuanced. In order to address these issues, we have to review some basics about which individuals need a license to receive or pay compensation. We will start with a review of what the NC Real Estate Commission (NCREC) requires in terms of licenses. A review of typical compensation clauses in listing, representation and sales agreements is also helpful.

We also will look at NCREC rules regarding receiving compensation; the Real Estate Settlement Procedures Act (RESPA); the Sherman-Clayton Anti-Trust Act; some interesting litigation on the issue of brokerage compensation; and non-traditional brokerage models.

Course Number: 3957 Name of elective cou...: Can I Get a Referral Fee on That? and Ot...

Content
  • INTRODUCTION
  • Introduction to the course topics
  • Introduction about how on-demand courses work are different
  • How to navigate this course and use the TalentLMS platform
  • Course description
  • Course instructional goal
  • Rules of engagement
  • Section 1. NCREC RULES / FEDERAL LAWS ABOUT COMMISSIONS AND COMPENS
  • 1.1 Objectives for this section
  • 1.2 NC GS 93A (licensing law) and NCREC rules on compensation
  • 1.3 What if I don't take the required CE courses?
  • 1.4 What if I am a provisional broker? Do I have any other requirements?
  • 1.5 NC GS 93A (licensing law) and NCREC rules on compensation (cont.)
  • 1.6 Let's review: NC laws/rules on licensure
  • 1.7 Commission rates
  • 1.8 184 Things a Realtor does for a Seller
  • 1.9 How anti-trust laws affect your compensation
  • 1.10 NAR Video on Anti-Trust
  • 1.11 Summary of the NAR video
  • 1.12 An alleged lack of transparency
  • 1.13 NAR's response to the latest round of litigation and settlement
  • 1.14 Another anti-trust video
  • 1.15 Let's Review: Anti-Trust
  • Section 2. REFERRAL FEES
  • 2.1 Objectives for this section
  • 2.2 Referral fees
  • 2.3 Paying referral fees to others
  • 2.4 This time it's personal
  • 2.5 Let's Review: referral fees
  • 2.6 Referral fees to charities; disclosure; ethics
  • 2.7 It's REALLY personal: a business 'thank you"
  • 2.8 Is it personal for YOU?
  • 2.9 Making the most of referrals
  • 2.10 A wrinkle: referral fees and non-resident NC brokers
  • Section 3. DISCLOSURE OF COMPENSATION
  • 3.1 Objectives for this section
  • 3.2 Disclosure of compensation
  • 3.3 Compensation from vendors and consumers
  • 3.4 NCAR Form 770
  • 3.5 Realtor obligations regarding disclosure
  • 3.6 Discussing/disclosing commission earnings: A percentage of a percentage
  • 3.7 Here's one view: Eight Ways to Justify Your Commission
  • 3.8 Let's review: Disclosure
  • Section 4. THE REAL ESTATE SETTLEMENT PROCEDURES ACT AND COMPENSATION
  • 4.1 Objectives for this section
  • 4.2. The Real Estate Settlement Procedures Act and compensation
  • 4.3 NAR video on RESPA
  • 4.4 Example of an Affiliated Business Arrangement disclosure statement
  • 4.5 Let's review: RESPA
  • Section 5. NON-TRADITIONAL BROKERAGE FIRMS, IBUYERS, AND COMPENSATION
  • 5.1 Objectives for this section
  • 5.2 Minimum services brokers
  • 5.3 Pros and cons of minimum services companies
  • 5.4 iBuyer firms
  • 5.5 Agitated broker/owner about Zillow
  • 5.6 Let's review: Nontraditional real estate firms
  • CONCLUSION
  • Conclusion
  • You're almost done!
  • End-of-course survey
  • Just hit the complete button....
Completion rules
  • All units must be completed
  • Leads to a certification with a duration: Forever