Referral fees – interference with brokerage relationship

 

12-61-203.5. Referral fees – interference with brokerage relationship

  1. No licensee under parts 1-4 of this article shall pay a referral fee unless reasonable cause for payment of the referral fee exists. A reasonable cause for payment means:
    1. An actual introduction of business has been made;
    2. A contractual referral fee relationships exists; or
    3. A contractual cooperative brokerage relationships exists
    1. No person shall interfere with the brokerage relationship of a licensee As used in this subsection (2):
      1. “Brokerage Relationship” means a relationship entered into between a broker or salesperson and a buyer, seller, landlord, or tenant under which the broker or salesperson engages in any of the acts set forth in section 12-61-101 (2). A brokerage relationship is not established until a written brokerage agreement is entered into between the parties or is otherwise established by law.
      2. “Interference with the brokerage relationship” means demanding a referral fee from a licensee without reasonable cause.
      3. “Referral Fee” means any fee paid by a licensee to any person or entity, other than a cooperative commission offered by a listing broker to a selling broker or visa versa.
  2. Any person aggrieved by a violation of any of the provisions of this section may bring a civil action in a court of competent jurisdiction. The prevailing party in any such action shall be entitled to actual damages and, in addition, the court may award an amount up to three times the amount of actual damages sustained as a result of any such violation plus reasonable attorneys fees.

12-61-803. Relationships between brokers and the public.

  1. When engaged in any of the activities enumerated in section 12-61-101 (2) or (3), a broker may act in any transaction as a single agent, subagent, dual agent, or transaction-broker. The broker’s general duties and obligations arising from that relationship shall be disclosed to the seller and the buyer or to the landlord and the tenant pursuant to section 12-61-808.
  2. A broker shall be considered a transaction-broker unless:
    1. A single agency or dual agency relationship is established through a written agreement between the broker and the party or parties to be represented by such broker; or
    2. A broker works with a buyer or tenant as a subagent of the seller or landlord by expressly agreeing with the seller or landlord to serve as a subagent or by impliedly agreeing to serve as a subagent by acting upon and thereby accepting an offer of subagency.

Disclaimer — Content is general information only. Information is not provided as advice for a specific matter, nor does its publication create an attorney-client relationship. Laws vary from one state to another. For legal advice on a specific matter, consult an attorney.

OLIVER E. FRASCONA