Referral Fee Paid Directly to Agent

Q: Do referral fees have to flow through a brokerage company, or can they be paid directly to an associate? 

A: Referral fees should flow through the brokerage company to the associate, in accordance with Section 475.42(1)(d),Florida Statutes.  Although FREC says that an associate may be paid directly at closing if a broker instructs the closing agent (in a specific writing) to authorize direct payment, FREC has not expanded this to include other situations.