Can a licensed insurance agent demand a referal fee for referring business?

Get Legal Help Today

 Secured with SHA-256 Encryption

Can a licensed insurance agent demand a referal fee for referring business?

A real estate deal was referred to a realtor. The insurance agent that referred the business is demanding a fee be paid from the realtor even though the realtor has told him that it is illegal for her to pay him a fee under any circumstances. I would like to know if it is legal for him as a licenced insurance agent is allowed to accept referral fees? In TX.

Asked on January 8, 2011 under Business Law, Texas

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

The best thing to do here is to call the Texas State Board of Realtors and to ask.  Referral fees or fee split arrangements are common with certain types of businesses but generally within the same profession.  Attorneys can refer cases to other attorneys and real estate agents often split their fees.  So the real estate agent may in fact be correct: it may be illegal for her to pay a referral fee or enter in to a split fee arrangement with anyone other than a licensed real estate broker.  The Texas Board of Realtors may have the information on their website as well but for members only so inquiry is probably necessary.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption