Yes. In most cases, you can refer a client to an out-of-state real estate agent and earn a referral fee, as long as you are properly licensed and the referral is handled through brokerages.
How Out-of-State Referrals Work
The process is the same as an in-state referral:
- you connect a client with an agent in another state
- a referral agreement is signed between brokerages
- the receiving agent handles the transaction
- the deal closes
- you receive a real estate referral fee through your brokerage
Your location does not matter as much as your licensing status and how the referral is structured.
Do You Need to Be Licensed in That State?
No. You generally do not need to be licensed in the state where the transaction happens.
You do need:
- an active real estate license in your home state
- affiliation with a brokerage
- the referral handled broker-to-broker
You are not performing traditional real estate services in that state. Your brokerage is making a referral.
Why the Brokerage Matters
Referral fees must be paid through licensed brokerages.
That means:
- your broker coordinates with the out-of-state broker
- the agreement is handled at the brokerage level
- payment flows through both brokerages
This is the same structure used by a real estate referral agent in any situation.
What to Watch For
Even though out-of-state referrals are common, there are a few things to pay attention to:
- make sure the referral agreement is in place before the client is handed off
- confirm the referral fee percentage up front
- work with a reputable agent in the other state
- understand that rules can vary slightly by state
Most issues come from not documenting the referral clearly.
Why This Works Well for Referral Agents
Out-of-state referrals expand your opportunities.
You are not limited to your local market. If someone in your network is moving across the country, you can still connect them with a qualified agent and earn a referral fee.
This is one of the reasons some agents focus entirely on referrals and keep their license with a real estate license holding company or similar brokerage setup.
The Bottom Line
Yes, you can refer real estate clients to out-of-state brokers.
As long as you are licensed, affiliated with a brokerage, and the referral is properly documented, you can earn a referral fee when the deal closes.