Is it legal for a Florida broker to pay a referral fee to a California broker not traveling to Florida?

The arrangement described is legal because the payment of referral fees between brokers in different states, such as Florida and California, is permissible under the laws governing real estate transactions as long as both brokers are properly licensed in their respective states. In this case, the Florida broker can legally pay a referral fee to the California broker without the latter needing to travel to Florida.

In many jurisdictions, brokers are allowed to collaborate and refer clients to one another, and a referral fee is generally a customary practice in the real estate industry. This promotes cooperation among brokers and allows for smoother transactions for clients who may be relocating or investing across state lines. The essential requirement is that both parties must comply with their own state laws regarding licensing and referral agreements. Therefore, as long as the California broker is licensed to operate in California, the referral fee arrangement is valid and legal.