Q: May a Florida licensed real estate broker pay an out-of-state licensee a referral fee?
A: Yes. Section 475.25(1)(h), Florida Statutes, allows a Florida licensed real estate broker to share compensation with a foreign licensee as long as the foreign licensee does not violate Florida law. The foreign licensee would not be permitted to come to Florida physically and engage in real estate activity as defined by Section 475.01(1)(a), Florida Statutes. Before paying the referral fee, the Florida licensed broker should verify that the foreign licensee is licensed to practice real estate in his or her state or foreign jurisdiction as the Florida licensee may need to pay the fee to the foreign licensee’s broker.