Frequently Asked Questions

Legal Hotline FAQ

a blog of the most frequently asked questions to the Maryland REALTORS Legal Hotline.

Cindy Sellers
Cindy Sellers
Cindy Sellers's Blog

How should referral fees between agents be handled?

All brokerage services, including paying referral fees, must be conducted through the broker.The referral fee must be run through the broker as any other agent compensation. As Section 17-322(b)(21) of the Maryland Real Estate Brokers Act states that a real estate licensee may not receive compensation for providing brokerage services from anyone other than the broker with whom the licensee is affiliated. Providing referrals is considered providing real estate brokerage services.  Section 17-322(b)(23) also states that under the Brokers Act, the Maryland Real Estate Commission may reprimand or suspend or revoke the license of any licensee that pays or receives a rebate, profit, compensation or commission in violation of the Act, including receiving a fee from another agent or paying another agent without going through the broker.

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