Question

Agent A wants to bring in new clients. He offers his former clients $100 for each lead they send him who ultimately buys or sells real estate. Is this legal in Illinois?

a) Yes, since he is offering the money to a client.
b) Yes, as long as he only gives them three payments a year, totaling less than $1,000.
c) No, finder's fees cannot exceed $25.
d) No, finder's fees are illegal.

Answer 1

In Illinois, finder's fees are illegal. Agent A's arrangement of offering $100 to former clients for referring leads who buy or sell real estate would be considered a finder's fee.

Step-by-step explanation:

In Illinois, finder's fees are illegal. A finder's fee is a commission or compensation given to a person for finding or referring potential clients or customers. In this case, Agent A is offering his former clients $100 for each lead they send him who ultimately buys or sells real estate. However, this arrangement would be considered a finder's fee, which is prohibited in Illinois law.