Thread: Hiring a non-licensed assistant based on commssion to generate leads?

This depends on your state license laws.

Most states require that those who participate in commissions, in a direct way, be licensed. In addition employees have other benefits like minimum wage, and fico contributions from the employer.

Be careful.

Originally Posted by luckyamerman

Is it possible for me to hire a part time non-licensed assistant to generate leads and pay that person a percentage of the commission based on deals that they bring in.

For example if he/she brings me an expired listing that I eventually close can I pay them say 25% of the commission or is that illegal because they are not a licensed Realtor? If not is there another way around having to pay them an hourly wage or will I have to bite the bullet?

I hope that I have put this in the write forum as this is a type of marketing idea but if its needs to be moved then please do so.

Thanks.

Try using Virtuals

Talk to your state real estate commission. They are the ones who make and enforce the rules and they are the ones who will take your real estate license away if your assistant performs tasks that only licensed agents can do.

I don't think you may need to face any legal instruction, in fact i would say good idea and as you said pay that person on percentage of the commission based on deals generate for you.

I didn't know they need to be licensed.

Each state has its own laws when it comes to this but I know many Realtors and brokers get away with it by hiring an out of state company to do it which usually is legal. I am of course talking about generating leads over the internet and I think they also get around it by paying money for each qualified lead and not anything on the backend.

You can pay for leads and pay an assistant to assist with leads, but the pay can't be based on a closing or be a percentage of a closing, unless the person is licensed. If the person is unlicensed, then the pay/fee must be set and paid regardless of a closing. If the person is licensed, then they must have their license in active capacity, and then they can be paid a commission based fee. Again, this is just Florida and other states may vary in their rules/laws.

[COLOR=black][FONT=Verdana]In Washington state you need to be licensed to touch any income generated from the result of a successful real estate transaction. You can however be a part owner of a corporation that owns a real estate firm and be paid from the proceeds of real estate commissions off the gross income produced from all income generating activities. Don

Good point, hiring non license in a great help and you can compensate them with minimum wage and give them commission. Make sure you hired right one who can close deals.