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Hi. I am thinking about starting a home prospecting company

 
WiseOwl58's Avatar
  • Answered by:WiseOwl58
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Customer Question

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?

 

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State/Country relating to question: Illinois

Already Tried:
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Submitted: 298 days and 2 hours ago.
Category: Real Estate Law
Value: $25
Status: CLOSED
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Expert:  WiseOwl58 replied 298 days and 2 hours ago.

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.

Customer replied 297 days and 15 hours ago.

When you say designated answer researachers? do you mean that is all they do?

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Expert:  WiseOwl58 replied 297 days and 15 hours ago.

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.

Customer replied 297 days and 13 hours ago.

Yes. Thank you so much.

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Expert:  WiseOwl58 replied 297 days and 13 hours ago.

You are welcome.

Please rate.the answer.3, 4 or 5 and close.out the question.

Thanks.

Expert TypeLawyer
Category: Real Estate Law
Pos. Feedback: 96.2 %
Accepts: 909
Answered: 7/5/2012

Experience: Experienced real estate lawyer and real estate broker.

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