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Real Estate Broker Referral Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Real Estate Broker Referral Agreement

"I need a Real Estate Broker Referral Agreement for my Riyadh-based brokerage firm to establish an exclusive referral arrangement with a Jeddah-based broker, focusing on luxury residential properties with a 25% referral fee structure."

Document background
The Real Estate Broker Referral Agreement is essential for real estate professionals operating in Saudi Arabia who wish to establish formal referral relationships with other brokers. This document is particularly relevant in the context of Saudi Arabia's growing real estate market and increasing professional standards in the brokerage industry. It addresses the specific requirements of Saudi Arabian real estate regulations, including broker licensing requirements under Royal Decree No. M/28, and ensures compliance with Sharia principles. The agreement is typically used when licensed brokers want to refer clients to other brokers who have expertise or presence in specific geographical areas or property types, establishing clear terms for commission sharing and professional responsibilities. It includes crucial provisions for regulatory compliance, professional standards, and Islamic financial principles, making it suitable for both domestic and international real estate transactions within Saudi Arabia.
Suggested Sections

1. Parties: Identification of the referring broker and receiving broker, including their respective license numbers and contact details

2. Background: Context of the agreement and brief description of the parties' business relationship

3. Definitions: Key terms used throughout the agreement, including 'Referred Client', 'Referral Fee', 'Qualifying Transaction'

4. Scope of Referral Arrangement: Details of the referral services and the territory or market covered by the agreement

5. Referral Process: Step-by-step procedure for making and accepting referrals

6. Compensation Structure: Referral fee calculations, payment terms, and conditions for fee eligibility

7. Obligations of Referring Broker: Duties and responsibilities of the broker making the referral

8. Obligations of Receiving Broker: Duties and responsibilities of the broker receiving the referral

9. Term and Termination: Duration of the agreement and conditions for termination

10. Confidentiality: Protection of confidential information and client data

11. Compliance with Laws: Commitment to comply with Saudi real estate laws and Sharia principles

12. Dispute Resolution: Process for resolving disputes under Saudi law

13. General Provisions: Standard clauses including notices, amendments, and governing law

Optional Sections

1. Non-Solicitation: Prohibits direct solicitation of referred clients, used when there's concern about client poaching

2. Exclusivity: Terms for exclusive referral arrangements, used when parties want to establish exclusive territories or client relationships

3. Marketing and Promotion: Guidelines for how parties may market their relationship, used when public promotion is planned

4. Insurance Requirements: Specific insurance coverage requirements, used for high-value property transactions

5. Training and Support: Details of any training or support provided between parties, used in comprehensive partnership arrangements

6. Data Protection: Additional provisions for handling personal data, used when dealing with international clients or sensitive information

7. Force Majeure: Provisions for unforeseen circumstances, used when parties want specific protection against external events

Suggested Schedules

1. Schedule A - Fee Structure: Detailed breakdown of referral fees, commission splits, and payment calculations

2. Schedule B - Referral Territory: Specific geographical areas or market segments covered by the agreement

3. Schedule C - Referral Procedures: Detailed operational procedures and forms for making referrals

4. Schedule D - Required Documentation: List of documents required for processing referrals and payments

5. Appendix 1 - Broker Licenses: Copies of current real estate broker licenses and certifications

6. Appendix 2 - Contact Information: Detailed contact information and escalation procedures for both parties

7. Appendix 3 - Standard Forms: Templates for referral submissions, client acknowledgments, and fee invoices

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions





























Clauses






























Relevant Industries

Residential Real Estate

Commercial Real Estate

Industrial Real Estate

Retail Real Estate

Hospitality Real Estate

Mixed-Use Development

Real Estate Investment

Property Management

Islamic Finance

Professional Services

Relevant Teams

Real Estate Operations

Legal

Compliance

Finance

Business Development

Client Relations

Administration

Islamic Finance Advisory

Risk Management

Property Management

Relevant Roles

Real Estate Broker

Property Consultant

Real Estate Agency Manager

Business Development Manager

Compliance Officer

Legal Counsel

Real Estate Operations Director

Commission Administrator

Client Relations Manager

Real Estate Transaction Coordinator

Broker License Administrator

Islamic Finance Advisor

Real Estate Portfolio Manager

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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