The Real Estate Agent Referral Agreement is essential for property practitioners in South Africa who wish to establish formal referral relationships with other agents or agencies. This document has become increasingly important with the implementation of the Property Practitioners Act 22 of 2019, which requires greater transparency and professionalism in real estate transactions. The agreement is typically used when agents wish to refer clients to colleagues who specialize in different geographic areas or property types, ensuring that both parties understand their obligations and compensation arrangements. It includes specific provisions for commission sharing, client handover procedures, and professional responsibilities, while ensuring compliance with South African regulations including POPIA for data protection and FICA for anti-money laundering requirements.
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1. Parties: Identification of the referring agent and receiving agent, including their registration numbers and contact details
2. Background: Context of the agreement, including the purpose of establishing a referral relationship
3. Definitions: Key terms used in the agreement, including 'Referral', 'Commission', 'Successful Transaction', etc.
4. Appointment and Scope: Establishes the nature of the referral relationship and its territorial scope
5. Referral Process: Details the procedure for making and accepting referrals, including communication requirements
6. Commission Structure: Specifies the referral fee percentage or structure and calculation method
7. Payment Terms: Terms and timing of referral fee payments, including invoicing requirements
8. Obligations of the Referring Agent: Duties including proper client handover and information provision
9. Obligations of the Receiving Agent: Responsibilities including client service standards and progress updates
10. Confidentiality: Protection of confidential information and client data
11. Duration and Termination: Term of the agreement and circumstances for termination
12. General Provisions: Standard clauses including governing law, dispute resolution, and entire agreement
1. Exclusivity: Used when the parties agree to work exclusively with each other in specified territories or for specific client types
2. International Referrals: Include when the agreement covers cross-border referrals, addressing currency and compliance issues
3. Marketing and Branding: Include when parties agree to specific marketing arrangements or brand usage
4. Professional Indemnity Insurance: Include when specific insurance requirements are needed beyond statutory requirements
5. Data Protection Compliance: Detailed POPIA compliance measures when extensive personal information sharing is involved
6. Training and Support: Include when one party will provide training or systems support to the other
1. Commission Schedule: Detailed breakdown of commission percentages for different types of transactions or property values
2. Territorial Coverage: Map or detailed description of geographic areas covered by the agreement
3. Referral Process Workflow: Step-by-step procedure for handling referrals, including timeframes and documentation requirements
4. Required Documentation: List of documents and forms required for proper referral processing
5. Contact Details: List of key personnel and their contact information for both parties
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Property Development
Property Management
Financial Services
Professional Services
Construction
Residential Property
Commercial Property
Industrial Property
Relevant Teams
Legal
Compliance
Operations
Sales
Business Development
Finance
Risk Management
Corporate Development
Property Management
Client Relations
Administrative Support
Relevant Roles
Real Estate Agent
Property Practitioner
Estate Agency Principal
Property Manager
Real Estate Broker
Franchise Owner
Business Development Manager
Sales Director
Compliance Officer
Legal Counsel
Operations Manager
Managing Director
Regional Manager
Referral Coordinator
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