OfflineBelow is a statement I found on the internet about fees paid. So does this mean that we cannot be paid for finding and selling properties here?
Arizona Real Estate Basics
3.C.4 Are referral fees legal in Arizona?
Every year real estate agents help thousands of families by referring them to other licensees across the United States. In return for the referral, they receive a percentage or other agreed upon fee is paid back to the referring broker. These fees are legal if paid between brokers and disclosure is made to any employing broker in receiving or sharing in any part of the transaction fee to be paid.
Finder’s fees may not be paid to unlicensed persons. Arizona law prohibits payment to so called “Bird Dogs” for leads they may provide to licensees if the person providing such assistance is not licensed and employed by an employing broker.
Instead of "bird dogging", do assignments. Also, the way I read the above is it only applies to licensed brokers. Bird dogging is usually investors (which could mean a family buying a property that wants a deep discount or a investor, many of whom aren't licensed realtors).
My suggestion, as it always is, it pull up the exact laws from the state, in this case the ARS (Arizona Revised Statutes) online to see exactly what the law is instead going off someone else's interpretation on the Internet. If you are not certain to the law after reading it yourself, have an attorney with real estate knowledge advise you.
See: http://www.deangraziosi.com/real-estate-forums/contracts/21624/how-do-i-...
Remember the word CONTRACT. IEE and Assignments are parts of a L/O(Lease Option)or Purchase and Sale agreement. These are concidered Legal agreements between a buyer and seller in any state. With that being said, when both parties agree to this document, you as the prospective buyer now have legal control to either buy or sell your agreed option or assign. Brokers and Real Estate agents do not control said property they only represent the sale.
As always, consult an attorney when doing these deals to preclude any confusion.
Not to break the rules I am suppose to enforce and divert the thread... but I have been meaning to bring this up.
There are a lot of knowledgeable individuals whose insights would be very much appreciated, like you Starship (sorry to put you on the spot, lol!), who have been enrolled here for quite for a while but don't do much posting. So I am calling out the people who mainly do observing to get involved and throw your much wanted two cents into the forums.
I know you everyone probably thinks this forum is pretty active from the "Who's Online" counts, and it is... but based on the stats and actual number counts we have thousands of other investors who I know have a lot of solid experience that lurk around here. So I am officially calling those of you out of woodwork! The more points of view and first hand experiences will benefit all even more, regardless if you are a just getting your feet wet in real estate, a seasoned pro in the game or anywhere in between!
Thanks for the feedback. I am a real estate agent so I guess I could do that part and then have someone else actually do the deal that makes the finder's fee. I do believe that the statement is from the state statutes but will check further. Are there any Arizona real estate agents reading this that may have an answer?
There are many things that realtors cannot do, and/or must disclose, that someone without a real estate license can do. However, this is the opposite to the rule of thumb.
In Arizona, it is illegal to pay an unlicensed person acting as a "bird dog" to find investment property (i.e. referral fees). It is a Class VI felony.
This is true as of this date September 3, 2012
But check to make sure...wherever you live.