Referral Fee for an REO...

I received an REO listing through ResNet.  How exciting!  Reading the listing agreement the company will pay 2.5 %  to each side of the transaction, ok....

Read further down the forms, Occupancy Status, BPO, check... then read Referral...


Appears in order to get this REO listing & get paid 2.5 %, I have to sign & agree to Pay a 1 % of the Sales Price Referral Fee back to the company that is offering this listing.


Comments please...


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  • Take it. I received listings from Res.Net before. That means SA 2.5, LA 2.5, Res.Net 1. Congrats on your listing.
  • It's a normal practice. Typically a 6% fee with the am getting the 1% leaving 5 total to be split. Sometime you have to co broke at 3. Take it and good luck.
  • Which asset management company is it?
  • It's common practice but I worry about whether this is a RESPA violation.

  • This is common. I would take it. Just imagine if the company send you 30 at once. That would be awesome! Any who congrats on your listing and I hope that you get plenty more.
  • What you described is how it works. Just like "help you to sell" you need to get volume business to make REO a worth awhile business model. Bulk REO are given only to a few kings.... They have the connection and know how to deliver.
  • A referral fee to the AM is common. They have to get paid too. It sounds like 2.5% to LA, 2.5% to SA, and 1.0%. However, I would verify the commission split with them.
  • Its not unusual for the listing broker tp pay a referral fee to the asset mangement company.
  • You may want to clarify this. In most cases I have run into, it is a situation of a total of 6% commission with 1% going to the asset management company, and 2.5% to buyer and seller broker respectively. Otherwise, it is usally spelled out very clearly as to who gets what.
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