Teams, Referral Fees & Compensation Flow

Every dollar of licensed compensation flows through the EMPLOYING BROKER: clients pay the brokerage, the brokerage pays its licensees per their agreements, and agents never take fees directly from a client, a lender, or another brokerage. REFERRAL fees between BROKERS (including out-of-state and relocation networks) are lawful; referral fees to unlicensed people are not — a $500 'thank you' to a past client for a referral violates most license laws (small closing gifts to your OWN client are generally fine — know your state's cap). Teams operate under the broker's license with team-name advertising rules. Net listings and undisclosed dual compensation are the other classic compensation traps.