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Just curious, what do brokers do if one of their agents does a deal out of state? Or say their family member did a deal and simply wanted to pass the commission onto them, but they aren't licensed in that state?
My guess would be for a local broker licensed in the target property's state to take the commission, and then send it as a referral fee. Referral fees between brokers in different states are totally legal.
See below for a sample commission referral invoice from a broker licensed in one state to a broker licensed in another state:
Re: Commission Referral
Commission Referral Services in connection with the sale of the property below:
123 Out of State Drive, Bixby, Arizona 59358
Buyer: Morgan Family Enterprises LLC
Total Net Referral Commission Due and Payable at Closing: 2.5% of Contract Price ($55,000)
My guess would be for a local broker licensed in the target property's state to take the commission, and then send it as a referral fee. Referral fees between brokers in different states are totally legal.
See below for a sample commission referral invoice from a broker licensed in one state to a broker licensed in another state:
Re: Commission Referral
Commission Referral Services in connection with the sale of the property below:
123 Out of State Drive, Bixby, Arizona 59358
Buyer: Morgan Family Enterprises LLC
Total Net Referral Commission Due and Payable at Closing: 2.5% of Contract Price ($55,000)