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Referral Agreement (Real Estate) for Canada

Referral Agreement (Real Estate) Template for Canada

This document establishes a formal referral arrangement between real estate professionals or brokerages in Canada, outlining the terms and conditions for client referrals and associated compensation. It ensures compliance with Canadian real estate regulations, including provincial Real Estate Acts and federal privacy laws, while defining the responsibilities of both referring and receiving parties. The agreement covers crucial aspects such as referral fee structures, payment terms, confidentiality obligations, and professional standards, providing a comprehensive framework for managing real estate referral relationships in the Canadian market.

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What is a Referral Agreement (Real Estate)?

The Real Estate Referral Agreement (Real Estate) is essential for Canadian real estate professionals and brokerages looking to establish formal referral relationships. This document is commonly used when a real estate professional wishes to refer clients to another professional or brokerage, typically in exchange for a referral fee. It ensures compliance with provincial real estate regulations and federal laws while protecting all parties' interests. The agreement is particularly valuable when dealing with inter-provincial referrals or when establishing ongoing referral relationships. It includes crucial details about referral processes, fee structures, professional obligations, and compliance requirements specific to the Canadian real estate industry. This document helps maintain professional standards and clear communication channels between parties while managing potential risks and legal obligations.

What sections should be included in a Referral Agreement (Real Estate)?

1. Parties: Identification of the referring and receiving real estate professionals/brokerages, including license numbers and contact information

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

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

4. Referral Terms: Process for making and accepting referrals, including communication protocols and timeline requirements

5. Compensation: Structure and calculation of referral fees, payment terms, and conditions for fee eligibility

6. Representations and Warranties: Parties' confirmations regarding licensing status, authority to enter agreement, and compliance with laws

7. Confidentiality: Obligations regarding client information and business data protection

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

9. Professional Obligations: Commitment to maintain professional standards and comply with real estate regulations

10. General Provisions: Standard clauses including governing law, entire agreement, amendments, and notices

What sections are optional to include in a Referral Agreement (Real Estate)?

1. International Referral Provisions: Additional terms for cross-border referrals, including currency conversion and international compliance requirements

2. Exclusive Arrangement: Terms establishing exclusivity between parties, if applicable

3. Marketing and Co-Branding: Guidelines for how parties may market their referral relationship and use each other's brands

4. Dispute Resolution: Specific procedures for handling disputes, including mediation or arbitration provisions

5. Insurance Requirements: Specific insurance coverage requirements for each party

6. Data Protection: Detailed provisions for handling personal data in compliance with privacy laws

7. Training and Support: Terms regarding any training or support provided between parties for handling referrals

What schedules should be included in a Referral Agreement (Real Estate)?

1. Schedule A - Referral Fee Structure: Detailed breakdown of referral fee percentages and calculation methods

2. Schedule B - Referral Process: Step-by-step procedure for making and accepting referrals

3. Schedule C - Territory Definition: Geographical areas covered by the referral arrangement

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

5. Appendix 1 - Referral Form Template: Standard form for submitting referral information

6. Appendix 2 - Compliance Checklist: Checklist ensuring all regulatory requirements are met for each referral

Authors

Alex Denne

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

Jurisdiction

Canada

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions






























Clauses






























Relevant Industries

Real Estate

Property Management

Property Development

Real Estate Investment

Commercial Real Estate

Residential Real Estate

Real Estate Consulting

Property Services

Relevant Teams

Legal

Compliance

Real Estate Operations

Business Development

Sales

Client Relations

Contract Administration

Risk Management

Finance

Professional Standards

Relevant Roles

Real Estate Agent

Real Estate Broker

Broker of Record

Real Estate Sales Representative

Property Manager

Real Estate Consultant

Business Development Manager

Referral Coordinator

Real Estate Team Leader

Managing Broker

Compliance Officer

Real Estate Operations 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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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