Due to federal RESPA laws (max penalties: $10,000 fine and year in federal prison) and state real estate license law, it is risk to pay anything of value in exchange referrals for leads on buyers to property managers or other folks not licensed to receive referrals (e.g. relatives, friends, people asking for money).
It is legal for a broker to broker referral fee. SCR has a standard form SCR600 for broker to broker referrals/payment.
If property managers ask for referrals, warn them that action might be a license law violation for them since license law allows brokers to solicit and be paid for referrals, but not property managers.
(20) ‘Property manager‘ means an associated licensee who meets educational requirements and passes the examination for a property manager license, and who will for a fee, salary, commission, other valuable consideration or with the intent or expectation of receiving compensation:
(a) negotiates or attempts to negotiate the rental or leasing of real estate or improvements to the real estate;
(b) lists or offers to list and provide a service in connection with the leasing or rental of real estate or improvements to the real estate; or
(c) advertises or otherwise represents to the public as being engaged in an activity in subitems (a) and (b).
(21) ‘Property manager-in-charge’ means a property manager who is designated as having the responsibility over the actions of associated licensees and also the responsibility and control over and liability for real estate trust accounts.
(3) ‘Broker‘ means an associated licensee who has met the experience and education requirements and has passed the examination for a broker license and who, for a fee, salary, commission, referral fee, or other valuable consideration, or who, with the intent or expectation of receiving compensation:
(a) negotiates or attempts to negotiate the listing, sale, purchase, exchange, lease, or other disposition of real estate or the improvements to the real estate;
(b) auctions or offers to auction real estate in accordance with Section 40-6-250;
(c) for a fee or valuable consideration solicits a referral;
(d) offers services as a real estate consultant, counselor, or transaction manager;
(e) offers to act as a subagent of a real estate brokerage firm representing a client in a real estate transaction; or
(f) advertises or otherwise represents to the public as being engaged in any of the foregoing activities.