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Referral Agreement Generator for United Arab Emirates

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Key Requirements PROMPT example:

Referral Agreement

I need a referral agreement that outlines the terms for referring clients to our services, including a 10% commission on successful referrals, confidentiality clauses, and a 12-month duration with an option for renewal.

What is a Referral Agreement?

A Referral Agreement is a formal contract where one party agrees to direct potential clients or business opportunities to another party, usually in exchange for a commission or fee. In the UAE, these agreements are common in real estate, financial services, and professional consulting, helping businesses expand their reach while complying with local commercial laws.

UAE businesses must ensure their referral arrangements follow specific regulations, especially in regulated sectors like banking and insurance. The agreement typically outlines commission structures, payment terms, confidentiality requirements, and the scope of referral activities. For regulated industries, parties need approval from authorities like the UAE Central Bank or relevant free zone administrators before implementing referral programs.

When should you use a Referral Agreement?

Use a Referral Agreement when your business wants to formalize partnerships with other UAE companies that can send qualified leads or customers your way. This is especially important in regulated sectors like real estate, where RERA guidelines require clear documentation of referral relationships and commission structures.

A formal Referral Agreement becomes essential when working with multiple partners, handling significant transaction values, or operating in regulated industries. It protects both parties by clearly defining commission rates, payment terms, and confidentiality obligations. For UAE businesses in financial services, healthcare, or professional services, having this agreement in place helps maintain compliance and prevents future disputes over referral fees.

What are the different types of Referral Agreement?

Who should typically use a Referral Agreement?

  • Real Estate Brokers: Often initiate referral agreements to share property leads with other licensed UAE agents, following RERA regulations
  • Financial Advisors: Use these agreements to refer clients to specialized investment or banking services while maintaining UAE Central Bank compliance
  • Business Consultants: Create referral networks with complementary service providers across UAE free zones
  • Legal Departments: Draft and review agreements to ensure compliance with UAE commercial laws and regulatory requirements
  • Corporate Service Providers: Establish formal referral channels for company formation and business setup services in mainland UAE and free zones

How do you write a Referral Agreement?

  • Party Details: Gather trade licenses, contact information, and authorized signatory details for all involved UAE entities
  • Scope Definition: Outline specific services, products, or opportunities covered by the referral arrangement
  • Commission Structure: Determine referral fees, payment schedules, and any performance targets aligned with UAE market standards
  • Regulatory Checks: Verify industry-specific requirements, especially for regulated sectors like real estate or financial services
  • Documentation: Collect proof of necessary licenses, permits, and qualifications from all parties
  • Term and Territory: Define agreement duration and geographical scope within UAE jurisdictions

What should be included in a Referral Agreement?

  • Identification Section: Full legal names, trade license numbers, and registered addresses of all UAE parties
  • Service Scope: Detailed description of referral activities and any exclusivity terms under UAE commercial law
  • Commission Terms: Clear payment structures, calculation methods, and timing aligned with UAE banking regulations
  • Confidentiality Clause: Data protection provisions meeting UAE privacy and cybersecurity requirements
  • Duration & Termination: Agreement period, renewal options, and termination conditions
  • Governing Law: Explicit statement of UAE jurisdiction and applicable emirate laws
  • Dispute Resolution: Specified UAE courts or arbitration centers for conflict resolution

What's the difference between a Referral Agreement and a Broker Agreement?

A Referral Agreement differs significantly from a Broker Agreement in several key aspects, though both involve connecting parties for business purposes in the UAE. While referral agreements focus on introducing potential clients for a fee, broker agreements establish a more comprehensive relationship with specific obligations and responsibilities.

  • Scope of Service: Referral agreements typically cover only the introduction of clients, while broker agreements include full transaction management, negotiation, and deal closure
  • Regulatory Requirements: Broker agreements in UAE often require specific licenses and RERA registration, especially in real estate; referral agreements generally have fewer regulatory demands
  • Compensation Structure: Referral fees are usually one-time payments for successful introductions, whereas broker fees often include complex commission structures based on transaction values
  • Legal Liability: Brokers assume greater legal responsibility for transaction outcomes, while referrers are mainly accountable for the quality of introductions

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