When it comes to real estate, referrals can be a powerful tool for success. One way to ensure referral success is through a referral agreement template. This document outlines the terms and conditions of the referral relationship between a real estate agent and a referring party. In this article, we will discuss the key components of a real estate agent referral agreement template.
1. Identifying Information
The referral agreement should begin with identifying information for both the real estate agent and the referring party. This information typically includes the full names and addresses of both parties, as well as any relevant contact information.
2. Scope of the Agreement
Next, the referral agreement should outline the scope of the agreement. This includes a description of the services that the referring party will provide, as well as any limitations or restrictions on those services. For example, the referral agreement may specify that the referring party will only refer clients to the real estate agent within a certain geographic area.
3. Referral Fees
Another key component of the referral agreement is the referral fee. This is the amount of money that the real estate agent will pay the referring party for each successful referral. The referral fee can be a percentage of the commission earned on the sale or purchase of a property or a flat fee per referral.
4. Payment Terms
The referral agreement should also include payment terms, including when the referral fee is due and how it will be paid. For example, the agreement may specify that the referral fee is due within 30 days of the successful completion of a transaction and will be paid by check or electronic transfer.
5. Confidentiality and Non-Disclosure
To protect both parties` interests, the referral agreement should include provisions for confidentiality and non-disclosure. This ensures that any confidential or proprietary information shared between the real estate agent and the referring party is kept confidential and not disclosed to any third parties.
Finally, the referral agreement should include provisions for termination. This outlines the circumstances under which the agreement can be terminated and any notice requirements. For example, the agreement may specify that either party can terminate the agreement with 30 days` written notice.
In conclusion, a referral agreement template can be an essential tool for real estate agents looking to expand their network and increase their referral business. By outlining the key components of the referral relationship, including identifying information, scope of the agreement, referral fees, payment terms, confidentiality and non-disclosure, and termination provisions, both parties can establish clear expectations and guidelines for their referral partnership.