Back Charging Fees

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Market Requests

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tsa0282 Sep 15, 2014 8:58 PM
I am currently expanding my brokerage to multiple states and I have not been successful with charging fees. Before I continue my expansion to states such as Florida, how are commercial brokerages staying profitable?

I am based in California and it is hard to imagine not charging broker fees or other fees to stay in business.

If it is possible will some one give me a hint on how to successfully survive in markets without broker fees.
jca925 Sep 16, 2014 8:19 AM
Hello, Fees will be treated a little differently in various States. Broker Fees, may be stated and charged or paid under different wordings. Therefore the Brokers who understand the lay-of-the-land will do the best. Be sure and read all of the informative information that each state has on “Brokerage Requirements”. Also, we are looking for a company that will pay us referral fees. We are a Lost Control Inspection / Consulting company and sometimes have customers that need "Vacant Property" insurance. Many of these customers are referred to us by real estate agents. Because we also get assignments from real estate agents and mortgage companies, we do get asked about property insurers from time to time. Therefore, We thought it might be a good idea to have a company that would pay us a referral fee for these types of referrals. AEN Property Services - Washington, DC Metro Area – VA – MD http://www.aenpropertyservices.com – AEN Loss Control Property Inspectors – Commercial Building Inspections
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FurriePrincess Sep 16, 2014 7:26 PM
Make certain you read and understand each state's rules and requirements regarding fees and disclosures.  In some states it is not allowed if you receive any commission at all.  Also some state do not allow agents to pay based on what business is written from a referral source... you have to treat it like buying leads... good and bad, you pay for them, as it is considered an illegal rebate of commission.  Do your homework. 

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