I am a developer/builder who is also a licensed real estate agent in PA.

I am selling "home packages:"  lot sale combined with new home construction sale.

I want to know if I can legally offer a "referral fee" to anyone who
refers a buyer to me.  Specifically, I want to offer a referral fee of
$1000 to each person in a referral chain up to three deep.

For instance: if you (referral 1) refer me to someone (referral 2) who
refers me to someone (referral 3) who buys a package (Buyer), I will
pay $1000 to each referral (total $3000) and then pay the Buyer's
closing costs up to $2000.  Total of $5000 in referrals and
incentives.

Is this legal in PA?  If not, why not.

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Clarification of Question by crashtucker-ga on 01 Oct 2006 19:47 PDT

My real estate license is currently active but I am not listing my
company's properties via my broker.  I am simply trying to save some
money on commissions in a tight Buyers Market.

Yes, is legal!!

View http://referralrealty.net/

http://www.lawsociety.org.uk/documents/downloads/PE_ReferralFeesGuidance1205.pdf

Relevant in UK. How to handle in detail.