When it comes to real estate sales, it is common for agents to work together to help secure deals. One way they do this is through referral agreements. These agreements help ensure that agents are compensated for introducing potential buyers or sellers to other agents who can help them.
If you are thinking about entering into a referral agreement with another agent, it is essential to have a solid agreement in place that outlines the terms of the agreement. Here is a sample real estate referral agreement to guide you through the process:
Referral Agreement for Real Estate Services
This referral agreement is entered into on the __________ day of __________, 20__ by and between [Agent A’s name], residing at [Address], [City], [State], and [Agent B’s name], residing at [Address], [City], [State].
Recitals
WHEREAS, Agent A is engaged in the real estate business in the state of [State];
WHEREAS, Agent B is likewise engaged in the real estate business in the state of [State]; and
WHEREAS, Agent A and Agent B desire to enter into a referral agreement to engage in mutually beneficial referral activities.
Terms
AGENT A agrees to refer to Agent B all real estate buyers or sellers in the state of [State] whom Agent A is not able to service.
AGENT B agrees to compensate Agent A with a referral fee of ____% of the total commission received by Agent B for the referred transaction. The referral fee shall be paid to Agent A within ____ days of the transaction close date.
AGENT A shall provide to Agent B the name, phone number, and email address of the buyer or seller being referred.
AGENT B shall promptly contact the referred buyer or seller and provide them with the real estate services they require.
This referral agreement shall remain in effect for ____ months from the date of execution.
Termination
Either party may terminate this agreement at any time, for any reason, upon written notice to the other party.
Governing Law
This agreement shall be governed by and construed in accordance with the laws of the state of [State].
Entire Agreement
This agreement constitutes the entire agreement between the parties and supersedes all prior communications, negotiations, and agreements between the parties.
In witness whereof, the parties have executed this referral agreement as of the day and year first above written.
[Agent A’s signature]
[Agent B’s signature]
By having a referral agreement in place, you can ensure that everyone is on the same page and that you are fairly compensated for your efforts. This sample agreement can be modified to fit the specific needs of your referral partnership and is an excellent starting point for creating a referral agreement for your real estate business.