BrokerageIndustry News

Ruling on real estate law clears way for charitable contributions

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An Alabama court has ruled that charitable donations made by real estate licensees in Alabama do not violate state real estate law as long as this practice follows some basic rules. RE/MAX International announced this week that a judgment by the Montgomery County Circuit Court has "recognized the legality of the practice of agents making charitable donations ... on a per-transaction basis" to Children's Miracle Network, a national nonprofit organization that raises money for children's hospitals. The Alabama Real Estate Commission had notified RE/MAX that a program offering charitable donations may be considered unlawful fee-splitting or commission-sharing under state law. The ruling clears up foggy language in state law on the legality of charitable contributions made by real estate agents. The judgment notes that the contributions have "no connection whatsoever to the sales associates' or brokers' real estate transactions and (the charity) does not refer business to (RE/MAX) in ret...