The Real Estate Referral Agreement (Real Estate) is essential for formalizing business relationships between real estate professionals in the United States. It's commonly used when an agent or broker wants to refer a client to another professional who may be better positioned to serve that client's needs, often due to geographic location or specialization. The agreement ensures compliance with federal regulations (including RESPA and Fair Housing Act) and state-specific real estate laws, while protecting all parties' interests through clear documentation of referral fees, responsibilities, and territory restrictions. This document is particularly important for maintaining professional standards and ensuring transparent compensation arrangements in the real estate industry.
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1. Parties: Identification of the referring and receiving parties, including license numbers and contact information
2. Background: Context of the referral relationship and purpose of the agreement
3. Definitions: Key terms used in the agreement including 'Referral', 'Referred Client', 'Commission', etc.
4. Referral Terms: Core provisions regarding the referral process, including acceptance criteria and response times
5. Compensation: Fee structure, payment terms, and conditions for earning referral fees
6. Term and Termination: Duration of agreement, renewal terms, and termination conditions
7. Representations and Warranties: Parties' confirmations regarding licensing, authority, and compliance with laws
8. Governing Law: Applicable jurisdiction and law governing the agreement
1. Territory Restrictions: Geographic limitations on referrals and territorial exclusivity provisions
2. Non-Solicitation: Restrictions on directly soliciting referred clients and protection of client relationships
3. Marketing Guidelines: Rules and procedures for promoting the referral relationship and using each other's brands
4. Confidentiality: Protection of confidential information exchanged during the referral process
5. Dispute Resolution: Procedures for resolving disputes, including mediation or arbitration provisions
1. Schedule A - Fee Schedule: Detailed breakdown of referral fees and commission splits for different types of transactions
2. Schedule B - Referral Process: Step-by-step procedure for making and accepting referrals, including forms and documentation requirements
3. Schedule C - Territory Map: Visual representation of geographic restrictions and approved territories for referrals
4. Schedule D - Required Disclosures: State-specific required disclosures and compliance documentation
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