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I have heard conflicting info about whether or not a real estate agent can pay you a finders fee or referal fee, if you refer a new client to them that ends up buying or selling with the agent.
Some agents in Puna have told me that it is illegal for them to pay such a fee for referal.
I would appreciate clarification.
Bill
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The law is very clear on this, they can not pay you. In fact, all the money goes to the brokearage companies after the closing and they pay the agents, so theorically, they would have to pay you too, but they can't either. Referral fees can be paid only to licensed entities and they pay the referring agents who have to have an active license hanging with the brokerage company.
Aloha,
John S. Rabi, ABR,CM,CRB,FHS,PB
http://www.JohnRabi.com
Typically Tropical Properties
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The agent can, however, be very, very nice to you in YOUR transaction and go a little further (you know, go take some pictures, be there for inspections, go to the mat on issues that come up, communicate with you, observe all contractual deadlines and alert you to them, deal honestly with you and not engage in island collusion) and treat you to a lilikoi margarita, and perhaps befriend you.
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Glen, you are correct. Actually, many clients and real estate agents become friends. One thing though, real estate agents can not do inspections for you. It's an exclusion in the Errors & Ommissions Insurance of the real estate companies. (If they have one. Many companies operate without E&O insurance because the premiums are astronomical.)
Aloha,
John S. Rabi, ABR,CM,CRB,FHS,PB
http://www.JohnRabi.com
Typically Tropical Properties
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John,
Are you saing that a real estate agent cannot attend an inspection by an inspection professional, when you are on the mainland or elsewhere and cannot observe the inspection? That's what I'm talking about.
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"Attend" is questionable and "Observe" is even more questionable, but the Judge eventually will decide!  Seriously, the buyer's real estate agents can not do the inspection for the buyer and it's the seller's listing agent who has control to the access of the house and let the inspector in. There is no reason for the buyer's agent to be there.
Aloha,
John S. Rabi, ABR,CM,CRB,FHS,PB
http://www.JohnRabi.com
Typically Tropical Properties
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I usually try to go to the inspection with the client, but I don't try to interpret the inspection for the client. What the inspector finds and tells the client is between them. I just like to hear what the inspector has to say so that I better understand when the client requests repairs or credits for repairs.
The inspector is hired by the buyer and the primary communication needs to be between them. I'm just a fly on the wall.
John Dirgo, R, ABR, e-PRO
Island Trust Properties, LLC
808-987-9243 cell
http://www.hawaiirealproperty.com
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Thanks to both John D. and John R. We are lucky to have two incredible realtors with a real love for Puna and Hawai'i educating us on the intracies of Hawai'i real estate, which, like everything else in and on Hawai'i has its quirks.
I would be surprised to learn that an agent cannot attend an inspection provided the seller has given permission for the buyer or his agent to enter the premises.
An agent need not interpret what an inspector has said but can certainly report on it, pending the written report. Let's say there is a water system that is at issue. And let's say the seller has agreed to have it inspected at the insistence of the buyer. Let's say the water guy shows up. I would think the buyer would have every right to attend that inspection (unless the seller wants to play hardball and bar the buyer from the premises during the inspection). Anything the BUYER has the right to do, such as attend an inspection, the AGENT has a right to do in his stead. That's what "agency" means. You stand in the place of the principal. You report; the principal decides.
But that's how it works where I live. I have no idea how it works, or doesn't work, where you live.
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Glen, you are right. However, "agency" has nothing to do with "liability." There was a recent lawsuit when the Buyer's Agent was present at the inspection and she pointed out some defects that were not noticed by the others. Helpful agent, right? Apparently, there were more defects and the court ruled that the agent was part of the inspection and was negligient! That's exactly why E&O insurance companies, as an exclusion, prohibit the agents to be part of the inspections. The buyer has the right to be present and the Buyer's Agent has the right to be present. Howevr, should there be a lawsuit, the agent (and the real estate company) can be held liable and their E&O insurance company will not represent them. That's why the companies prohibit the agents to be part of the inspection.
To be honest with you, I personally don't think real estate agents are quilified to do inspections and the exclusion make lots of sense.
Aloha,
John S. Rabi, ABR,CM,CRB,FHS,PB
http://www.JohnRabi.com
Typically Tropical Properties
Edited by - John S. Rabi on 06/24/2007 12:49:28
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John, if that lawsuit is settled I would like to read the summary of it. What Court and when was it.
Pua`a
S. FL
Big Islander to be.
Pua`a
S. FL
Big Islander to be.
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