The Real Estate Referral Fee Agreement serves as a crucial document in the U.S. real estate industry, facilitating cooperation between licensed professionals across different markets and jurisdictions. This agreement is essential when real estate agents or brokers wish to formalize arrangements for referring clients to colleagues in other locations or specialties. It ensures compliance with federal and state regulations while protecting all parties' interests by clearly defining the referral relationship, compensation structure, and professional obligations. The document is particularly important given the strict regulatory environment surrounding real estate referral fees in the United States.
Real Estate Referral Fee Agreement for the United States
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Key Requirements PROMPT example:
Real Estate Referral Fee Agreement
"I need a Real Estate Referral Fee Agreement between my brokerage firm in California and a partner firm in Texas, with a 25% referral fee structure and quarterly payment terms, to be effective from March 1, 2025."
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1. Parties: Identifies the referring and receiving real estate professionals/brokers, including license numbers and contact information
2. Background: Explains the context of the referral arrangement and the purpose of the agreement
3. Definitions: Defines key terms used in the agreement, including 'Referral', 'Referral Fee', 'Qualified Lead', etc.
4. Referral Terms: Outlines the specific terms of the referral arrangement, including duties and responsibilities
5. Fee Structure: Details the agreed-upon referral fee percentage or amount and payment terms
6. Term and Termination: Specifies duration of the agreement and conditions for termination
7. Compliance: Addresses compliance with applicable real estate laws and regulations
1. Exclusivity: Defines whether the referral arrangement is exclusive and the terms of such exclusivity
2. Territory: Defines geographical limitations of the referral arrangement and any territorial restrictions
3. Performance Standards: Sets specific standards for handling referrals and maintaining service quality
4. Marketing Requirements: Outlines how the referral relationship can be marketed and promoted by both parties
1. Fee Schedule: Detailed breakdown of referral fee calculations for different types of transactions
2. Territory Map: Visual representation of covered geographic areas if territorial restrictions apply
3. License Documentation: Copies of current real estate licenses for all parties involved
4. Referral Process Flow: Step-by-step process documentation for handling referrals between parties
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