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Ask Dimitry Esquire Your Own Question
Dimitry Esquire
Dimitry Esquire, Attorney
Category: Real Estate Law
Satisfied Customers: 41221
Experience:  JA Mentor, multiple jurisdictions, specialize in business/contract disputes, estate creation & admin
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First off, I'm a licensed Realtor who owns a brokerage (company

Customer Question

First off, I'm a licensed Realtor who owns a brokerage (company A) who is also going to soon be an employee of my primary buyer (company B). Is there anything wrong with that? (I know there are strict laws about a Realtor not receiving money from their buyer for a transaction, but I'm not going to be employed as a realtor but as a bookkeeper.
Secondly, what I want to do is pay an employee of (company B) half of the profits she brings in as a finders fee from my (company A) on a monthly basis. She is employed by (company B) as a property aquirer. Is this legal?
Submitted: 2 years ago.
Category: Real Estate Law
Expert:  Dimitry Esquire replied 2 years ago.
Thank you for your question. Please permit me to assist you with your concerns.
The first condition, you working for the primary buyer, is NOT illegal since you are conducting separate work that is unrelated to the brokerage. As far as the second point, that IS illegal because you are now discussing an issue of 'self-dealing' and a potential conflict of interest. While that person can work for you directly, paying her a finder's fee would violate state law.
Dimitry, Esq.
Customer: replied 2 years ago.
What about if I paid her as a contractor instead?
Expert:  Dimitry Esquire replied 2 years ago.
Same problem arises--she works for someone else, not you, and since you already have an agreement with that employer, it can be seen as a modified 'kickback' for services rather than a legitimate fee for the work that she provided.
Dimitry, Esq.