Hi. I am thinking about starting a home prospecting company where I hire people to generate leads for me. I would pay them x amount of money for every lead that resulted in a sale/closing. I am a Realtor and wanted to know if I could do this legally?
State/Country relating to question: Illinois
Yes, but.they must be designated ans.re researchers. They can generate prospects thru their research, but you must be the initial.contact soliciting.their.listing and.you.must.be the contact.throughout the transaction. You must pay your.researchers on an hourly basis or.a.per.lead.basis, but make sure that their compensation is never calculated as a.percentage of the property sales price, because then they would be earning a commission.which is.a.violation of the real.estate regulations.in Illinois.Good luck to you. I swish you all the.best.
When you say designated answer researachers? do you mean that is all they do?
No, what I mean is that they must be designated as researchers for you. They cannot solicit listings directly from your prospective clients without a license and they cannot be paid as a percentage of the sales price of a property. If you pay them an hourly fee or a flat fee per lead or a success fee as a flat fee for each prospect that YOU close, that is fine.
They can bring you the names and prospects that you would then write or call or meet with personally to get a Listing Agreement.
Does this make sense? Let me know. Thanks.
Yes. Thank you so much.
You are welcome.Please rate.the answer.3, 4 or 5 and close.out the question.Thanks.
Experienced real estate lawyer and real estate broker.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).