(1) A person licensed under part 2, 3, or 5 of this article 10 shall not pay or receive a referral fee except in accordance with the federal "Real Estate Settlement Procedures Act of 1974", as amended, 12 U.S.C. sec. 2601 et seq., and unless reasonable cause for payment of the referral fee exists. A reasonable cause for payment means:
An actual introduction of business has been made;
A contractual referral fee relationship exists; or
A contractual cooperative brokerage relationship exists.
(2) (a) No person shall interfere with the brokerage relationship of a licensee. (b) As used in this subsection (2):
"Brokerage relationship" means a relationship entered into between a broker and abuyer, seller, landlord, or tenant under which the broker engages in any of the acts set forth in section 12-10-201 (6). A brokerage relationship is not established until a written brokerage agreement is entered into between the parties or is otherwise established by law.
"Interfere with the brokerage relationship" means demanding a referral fee from alicensee without reasonable cause.
"Referral fee" means any fee paid by a licensee to any person or entity, other than acooperative commission offered by a listing broker to a selling broker or vice versa.
(3) Any person aggrieved by a violation of any provision of this section may bring a civil action in a court of competent jurisdiction. The prevailing party in any such action shall be entitled to actual damages and, in addition, the court may award an amount up to three times the amount of actual damages sustained as a result of any such violation plus reasonable attorney fees.
Source: L. 2019: Entire title R&RE with relocations, (HB 19-1172), ch. 136, p. 642, § 1, effective October 1.
Editor's note: This section is similar to former § 12-61-203.5 as it existed prior to 2019.