Are Company "recommendation Costs" Illegitimate

[hanan]

Our issue entails property situated in Their State of: NYC<br />
I've a buddy who's a company, "Expenses". I've another buddy who's a genuine estate broker, "Cathy".<br />
Yesterday I believed to Cathy "Hello, when you have a customer who's promoting a home who may want to buy pressure-washed or decorated perhaps you might send the customer to Statement. As well as in change perhaps Bill might spend you a $40 affiliate payment...which means you both get anything from it...besides the customer who'll possess a nicer-looking house that'll provide more income for them in the sale."<br />
I've no-interest within this. I had been simply attempting to assist them equally out. Bill is a superb company, who excellent function and at reasonable rates. Effectively Cathy got all upset "I can not do that, thatis illegitimate, and thats not ethical." I had been told.<br />
I stated "Why?" and mayn't obtain a clear solution. If all events gain what is wrong with bill-paying her anything? Bill needs to spend to market to obtain clients...this really is yet another method to get customers.<br />
I stated "Nicely, when another agent provides you a customer and also you separate the percentage is not that the "recommendation" charge?"<br />
And when "disclosure" is definitely an issue could not she state in advance towards the customer "you are able to contact Statement to paint-your family room. He's a great company. But simply which means you understand, if you are using him he might spend me a recommendation fee."<br />
I simply understand within the several companies I'm acquainted with a "affiliate payment" is typical. And that I wont actually get into what continues within the trucking company to obtain and maintain clients hehehe<br />
Wouldn't it be "illegitimate" or "unethical" for Cathy to send company to Statement, if Bill perhaps offered her a $40 affiliate fee for every work he did?<br />
Rob

[madison86]

It's more likely an ethics issue than a "legality" issue. Try asking the New York State Board of Real Estate, or exploring the content of their website.