Legal Library

Legal Hotline Question of the Week: Advertising for Referrals

May 8, 2017

Author: UAR

In today’s market, many agents are trying to come up with new and creative ways to attract clients. A word of caution: Be careful in your marketing for referrals. It is perfectly fine to ask for referrals. However, the Utah Administrative Code prohibits paying a finder’s fee to unlicensed individuals.

The exception to this rule is that agents “may give a gift valued at $150 or less to an unlicensed person in appreciation for the unsolicited referral that results in a real estate transaction” (R162-2f-401b(12)(a).

This legal gift could arise when pleased former clients recommend you to a neighbor, friend or family member. You then may give them a gift valued at $150 or less as a thank-you for that referral that resulted in a real estate transaction. The key with this rule is the unsolicited aspect.

For questions on advertising or more, please call the UAR’s Legal Hotline on Monday, Wednesday or Friday from 8:30 a.m. to 4 p.m.


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