Real Estate Referral Fee Agreement Templates

What is Real Estate Referral Fee Agreement?

Real estate referral fee agreements are contracts between two parties, usually a real estate broker or agent and a third-party referral source. A referral fee agreement is used to outline the details of the referral arrangement. This agreement typically states that the referral source will receive a specified fee for sending a customer to the broker or agent, who then earns a commission when the customer purchases a property.

Real estate referral fee agreements are generally used when a broker or agent is looking to increase their customer base or when they want to diversify their referral sources. These agreements can also be used to build relationships with other professionals in the real estate industry, such as appraisers, title companies, and lenders.

What Should A Real Estate Referral Fee Agreement Include?

A real estate referral fee agreement should include information about the referral source, the broker or agent, and the customer. The agreement should also specify how much the referral fee will be, when it will be paid, and any other conditions that apply.

The agreement should also include information about the services that the broker or agent will provide to the customer and any limitations they may have. For example, the agreement should state that the broker or agent will not provide any legal advice or negotiate any contracts on behalf of the customer. The agreement should also be clear on what will happen if the customer doesn’t purchase a property through the broker or agent.

What Are The Benefits Of Using A Real Estate Referral Fee Agreement?

Real estate referral fee agreements are beneficial for both parties involved. They help the referral source by providing them with a financial incentive to send customers to the broker or agent. They also provide the broker or agent with a steady source of new customers.

Real estate referral fee agreements also help to protect the interests of both parties. They give the referral source assurance that they will be paid for the referrals they make and they give the broker or agent assurance that they will be paid for the services they provide.

Sample Real Estate Referral Fee Agreement Templates

Below are three sample real estate referral fee agreement templates. These templates can be used as a starting point when creating your own referral fee agreement.

Template 1: Simple Referral Fee Agreement

This agreement is made between [Referral Source] and [Broker/Agent] on [Date].

The Referral Source agrees to refer customers to the Broker/Agent in exchange for a referral fee. The referral fee will be [Amount] and will be paid when the customer purchases a property through the Broker/Agent. The Broker/Agent agrees to provide the Referral Source with regular updates on the status of the referrals.

Template 2: Comprehensive Referral Fee Agreement

This agreement is made between [Referral Source] and [Broker/Agent] on [Date].

The Referral Source agrees to refer customers to the Broker/Agent in exchange for a referral fee. The referral fee will be [Amount] and will be paid when the customer purchases a property through the Broker/Agent. The Broker/Agent agrees to provide the Referral Source with regular updates on the status of the referrals. The Broker/Agent also agrees to provide the Referral Source with a copy of all contracts and documents related to the property purchase. The Broker/Agent will not provide any legal advice or negotiate any contracts on behalf of the customer.

Template 3: Multi-Referral Fee Agreement

This agreement is made between [Referral Source] and [Broker/Agent] on [Date].

The Referral Source agrees to refer customers to the Broker/Agent in exchange for a referral fee. The referral fee will be [Amount] and will be paid when the customer purchases a property through the Broker/Agent. The Referral Source will also receive a bonus fee if the customer purchases multiple properties through the Broker/Agent. The Broker/Agent agrees to provide the Referral Source with regular updates on the status of the referrals. The Broker/Agent will not provide any legal advice or negotiate any contracts on behalf of the customer.

Conclusion

Real estate referral fee agreements are a great way to build relationships with referral sources, increase your customer base, and diversify your referral sources. They provide financial incentives for referral sources to send customers to you and they protect both parties’ interests. The three sample real estate referral fee agreement templates provided above can be used as a starting point when creating your own referral fee agreement.

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