[WSBARP] liability for a commission under a "referral agreement" with an unlicensed person

[Robert S Schuck]

Fee $500 & $45 wire courier fee.

Robert S. Schuck
Kennedy,Schuck & Miller, PLLC
1520 140th NE, Suite 200
Bellevue, WA 98005
(425)451-3760 (telephone)
(425)451-3878 (facsimile)
rsschuck at ksmlawfirm.com<mailto:rsschuck at ksmlawfirm.com>

This correspondence is covered by the Electronic Communications Privacy Act, 18 U.S.C. 2510-2521, and may contain confidential information protected by Attorney-Client privilege. If you are not a person for whom this message was intended, please delete it from your system immediately, refrain from copying or forwarding any part of the message, and kindly notify me at (425) 451-3760 or at rsschuck at ksmlawfirm.com<mailto:rsschuck at qwest0ffice.net>   Thank you.


From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Justin Monro
Sent: Friday, September 18, 2015 12:05 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] liability for a commission under a "referral agreement" with an unlicensed person

No. He/She will likely not be able to collect any part of the commission (ie referral agreement). All brokers must be licensed to collect any monies in this state. He/She should have referred the listing through a licensed WA broker here and then the brokerage would pay him/her his fee upon closing.

Sincerely,


Justin K. Monro
Attorney at Law
The Monro Law Firm P.S. Inc.
1830 Bickford Ave. Ste 204
Snohomish, WA 98290
P:360.863.3728
F:360.863.3985

CONFIDENTIALITY NOTE: This e-mail message contains information belonging to The Monro Law Firm P.S. Inc. which may be privileged, confidential and/or protected from disclosure.  The information is intended only for the use of the individual or entity named above.  If you think that you have received this message in error, please contact the sender.  If you are not the intended recipient, any dissemination, distribution or copying is strictly prohibited.

From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Rod Harmon
Sent: Friday, September 18, 2015 11:28 AM
To: REALPROP at yahoogroups.com; wsbarp at lists.wsbarppt.com
Subject: [WSBARP] liability for a commission under a "referral agreement" with an unlicensed person

An out-of-state real estate broker entered into a "Referral Agreement" with a property owner (Seller) with respect to commercial real property in this state.  The key provisions of the agreement are:

1.      Broker will provide property information and contact information for Seller to prospective buyers for the property with the intent that buyer will submit an offer on the property with the intent to purchase the property.

2.      Broker will have no further involvement in the process of evaluating the property or negotiating any potential transaction.

3.      Seller agrees to pay Broker a referral fee of 6% in case a transaction is completed with Buyer.



The Seller has sold the property to a Buyer introduced by the Broker to the Seller. Is the Broker entitled to collect his commission, or is he barred from collecting it by RCW 18.85.331?

That statute, set out in full below, provides that a prerequisite to a suit for compensation as a real estate broker is that the plaintiff was a licensed as such at the time of the "contract for the payment of compensation for any contemplated real estate transaction."  Does anyone know of any case law addressing a "referral agreement," however stylized, which attempts to skirt the statutes regulating real estate brokers.




RCW 18.85.331. License required - Prerequisite to suit for commission
It is unlawful for any person to act as a real estate broker, managing broker, or real estate firm without first obtaining a license therefor, and otherwise complying with the provisions of this chapter.
No suit or action shall be brought for the collection of compensation as a real estate broker, real estate firm, managing broker, or designated broker, without alleging and proving that the plaintiff was a duly licensed real estate broker, managing broker, or real estate firm before the time of offering to perform any real estate transaction or procuring any promise or contract for the payment of compensation for any contemplated real estate transaction.

Rod Harmon

RODNEY T. HARMON
       Attorney at Law
         P.O. Box 1066
      Bothell, WA   98041
     Tel:   (425) 402-7800
     Fax:  (425) 458-9096
    www.rodharmon.com<http://www.rodharmon.com>
   rodharmon at msn.com<mailto:rodharmon at msn.com>


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