The Real Estate Broker Referral Agreement serves as a crucial document in the U.S. real estate industry, facilitating professional collaboration between licensed brokers across different markets or specialties. This agreement is commonly used when a broker cannot directly serve a client due to geographical limitations, specialty requirements, or licensing restrictions. The document outlines the referral process, compensation terms, and ensures compliance with federal regulations like RESPA and state-specific real estate laws. It protects both parties' interests while maintaining professional standards and legal compliance in the referral relationship.
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1. Parties: Identification of referring and receiving brokers with license numbers
2. Background: Context of the referral relationship and purpose of agreement
3. Definitions: Key terms used in the agreement including 'Referral', 'Client', 'Commission'
4. Referral Terms: Specific mechanisms and processes for making referrals
5. Compensation: Referral fee structure and payment terms
6. Term and Termination: Duration of agreement and termination provisions
7. Representations and Warranties: Confirmation of licensing status and compliance with applicable laws
8. General Provisions: Standard legal provisions including governing law, notices, and amendments
1. Territory Restrictions: Geographic limitations on referrals - used when referrals are limited to specific areas
2. Non-Solicitation: Restrictions on directly soliciting referred clients - used when protecting ongoing client relationships
3. Marketing Guidelines: Rules for promoting the referral relationship - used when parties plan joint marketing
4. Confidentiality: Provisions protecting confidential information shared between brokers - used when sensitive information will be exchanged
1. Schedule A - Fee Schedule: Detailed breakdown of referral fee percentages and payment terms
2. Schedule B - Referral Process: Step-by-step procedure for making and accepting referrals
3. Schedule C - License Documentation: Copies of current real estate licenses for both parties
4. Schedule D - Territory Map: If applicable, map or description of geographic territory covered by the agreement
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