Referral Fees in Texas Real Estate: Who Can Be Paid and Who Cannot

The short answer

A referral fee is money paid to someone who sends you a client. In Texas, who gets paid matters more than the size of the fee. TREC treats a payment to a licensed broker very differently from a payment to a friend, past client or other person with no license.

This guide explains what TREC says in its public FAQs and what the federal rule says. It is a plain starting point. It is not a ruling on your deal.

Paying an unlicensed person

TREC says a license holder may not pay an unlicensed person valuable consideration for referring a potential buyer or tenant. TREC also says it may suspend or revoke a license, or take other action, against a license holder who pays any part of a commission or fee to anyone other than a licensed Texas broker or a broker licensed in another state. TREC cites Texas Real Estate License Act section 1101.652(b)(11) for that (TREC Rules and Laws FAQs, checked October 16, 2026).

So a thank-you check to a past client for a referral is the kind of payment the rule is written to stop. The safer move is to ask your broker before you offer anything.

The $50 gift limit

TREC says gifts of merchandise worth $50 or less are not treated as valuable consideration, and it cites Rule 535.20(a). A gift card that can only be spent on certain merchandise, such as a restaurant or department store card, is allowed under that FAQ. A bank-issued card that can be turned into cash is not.

TREC also says any amount of cash is not allowed as a reward for a referral. A credit or bonus toward rent owed is not allowed either (TREC Rules and Laws FAQs, checked October 16, 2026).

What is not a small gift

TREC answered a question about entering a referring person in a drawing for a cruise. It said that is not allowed, because a cruise worth more than $50 is valuable consideration even if entering the drawing costs nothing. It also warned that a referral drawing may be treated as an illegal lottery under Texas Penal Code sections 47.01(7) and 47.03(5).

The takeaway is simple. Prizes, trips, cash equivalents and drawings can all cross the line.

Quick reference

This table summarizes the TREC FAQ answers above. It is our summary, not TREC wording.

Where the money goes

TREC says on its sales agent page that all commissions must be paid through the agent’s sponsoring broker (TREC, checked October 16, 2026). That is why an agent should not send or accept a referral fee on their own. Bring the broker in first, and get the terms in writing.

Our guide on how agents get paid in Texas shows how money flows through the sponsoring broker.

The federal rule: RESPA section 8

A federal rule adds a second layer when a mortgage loan is involved. The CFPB text of 12 CFR 1024.14(b) says no person shall give and no person shall accept "any fee, kickback or other thing of value" under an agreement to refer settlement service business tied to a federally related mortgage loan (CFPB, checked October 16, 2026).

The same section lists payments that are permitted. One is a payment under cooperative brokerage and referral arrangements between real estate agents and real estate brokers. The CFPB text says that exemption covers fee divisions only when all parties act in a real estate brokerage capacity. It does not apply to fee arrangements between real estate brokers and mortgage brokers.

What this means for lender and title referrals

If you are tempted to take or give money for sending a client to a lender, title company or other settlement service, stop and ask your broker. The federal text says a company may not pay another company or its employees for referring settlement service business. We are not telling you whether a given arrangement is legal. That takes a lawyer who knows RESPA.

What we could not verify

We did not read the full text of Texas Occupations Code chapter 1101 or Rule 535.20 directly. We cite them as TREC cites them in its FAQs. We also did not find a TREC page that lists every allowed fee between two brokers in different states, so we make no claim there. Check the current rule text before you rely on any detail here.

Common mistakes

These are our view of likely mistakes, not a TREC list.

• Sending cash or a payment app transfer to a past client who sent you a lead.
• Offering a bank gift card that can be turned into cash.
• Running a referral drawing with a large prize.
• Paying or taking a fee outside the sponsoring broker.
• Trading money with a lender or title company for sending clients their way.

Questions to ask your broker

Use this list before you promise anything to a referral source.

• Can I pay or accept a referral fee on this deal, and who is the payee?
• Does my brokerage have its own referral policy?
• Will the fee go through the brokerage?
• Is a mortgage loan involved, and does that change the answer?
• Can you put the answer in writing?

If you are licensed in DFW

If you are licensed and looking at the Dallas and Fort Worth area, you can start a conversation with us on our site. Ask every brokerage for its referral policy in writing.

Rules can change

Education only, not legal, tax or financial advice. Confirm licensing rules with TREC.