When Does the Agent Pay a Referral Fee?

Overview

Referral fees are the commission percentage agents pay to SOLD.com upon successful transactions with referred clients. These fees are due for both sell-side and buy-side transactions, with specific rules depending on the type of referral, transaction, and the agent's participation in the Guaranteed Display (SGD) program.

Sell-Side (Listings)

A referral fee is due at close of escrow for the referred client whose home the agent sold. This applies to:

• Appointments
• Active Leads (Non-Appointments)

Payment Methods:

• Paid through the HUD or closing statement.
• The agent (or their broker) can also mail SOLD.com a check.

Buy-Side (Purchases)

If the referred client purchases a home with the agent, a referral fee is also due. This applies to:

• Appointments
• Active Leads (Non-Appointments)

Multiple Sales/Closings/Purchases

If the referred client:

• Buys or sells multiple homes with the agent, a referral fee is due for each transaction completed within 18 months of the last time SOLD.com referred the client.

Referral Fee Details

• Standard Referral Fee:

  • 35% for all transactions unless otherwise noted.

• SGD Agents:

  • Referral fee is reduced to 30% for all closings regardless of the zip code.
  • Referral fees are only due for appointments, not active leads, if the agent is actively SGD in that zip code.

Example Scenarios

• Scenario 1:
  An agent sells the referred client’s home and pays the referral fee through the HUD statement.

• Scenario 2:
  The referred client buys another property within 18 months, and the agent pays another referral fee for the new transaction.

• Scenario 3 (SGD Agent):
  The agent closes a transaction on a lead from an appointment in their sponsored zip code. Their referral fee is 30%. If the lead was an active lead (non-appointment), no referral fee is due.

Key Points for Reps

• Confirm whether the agent is part of the SGD program and which zip codes they sponsor.
• Ensure agents understand that referral fees apply to both sell-side and buy-side transactions, and multiple fees may apply for the same client.
• Clarify payment options for the referral fee, such as via HUD, closing statement, or mailing a check.

Example Talk Track

"Thanks for reaching out! Referral fees are due at the close of escrow for any referred client whose home you sell or if they purchase a home with you. If you're part of our SGD program, your referral fee is reduced to 30%, and for active leads in your sponsored zip codes, no referral fee applies unless it's an appointment. Let me know if you’d like more details or assistance with payment processes!"

Contact Information

• To mail checks:
  SOLDCOM, LLC
  999 Corporate Drive, Suite 215
  Ladera Ranch, CA 92694
  ATTN: PJ Mitchell
  Phone: 949-581-5310

This ensures clarity and sets proper expectations for agents regarding referral fees