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Broker Referral Fee Agreement for Philippines

Broker Referral Fee Agreement Template for Philippines

A legally binding agreement governed by Philippine law that establishes the terms and conditions for referral fees between brokers or brokerage firms. This document outlines the referral process, fee structure, payment terms, and obligations of both the referring and receiving parties, ensuring compliance with the Real Estate Service Act (RESA) and other relevant Philippine regulations. The agreement includes provisions for confidentiality, professional conduct, and dispute resolution while addressing specific requirements under Philippine brokerage and anti-money laundering laws.

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What is a Broker Referral Fee Agreement?

The Broker Referral Fee Agreement is essential for formalizing referral relationships between licensed brokers and brokerage firms operating in the Philippines. This document is particularly important in situations where professionals wish to establish a structured referral system while maintaining compliance with Philippine regulations, including the Real Estate Service Act (RESA), Anti-Money Laundering Act, and related laws. The agreement typically includes detailed provisions on referral processes, fee calculations, payment terms, and professional obligations. It serves to protect both parties' interests by clearly defining the scope of the referral relationship, preventing disputes, and ensuring transparent financial arrangements. This document is commonly used in real estate transactions but can be adapted for other brokerage services where referral relationships are beneficial.

What sections should be included in a Broker Referral Fee Agreement?

1. Parties: Identifies the contracting parties - the referring broker/agent and the receiving broker/agent, including their license numbers and contact details

2. Background: Explains the context of the agreement, including the parties' qualifications and their intention to establish a referral relationship

3. Definitions: Defines key terms used throughout the agreement, including 'Referral', 'Referral Fee', 'Qualified Lead', and 'Successful Transaction'

4. Scope of Services: Details the nature of referrals to be made and the services covered under the agreement

5. Referral Process: Outlines the specific procedures for making and accepting referrals

6. Referral Fee Structure: Specifies the fee calculation method, percentages, and payment terms

7. Payment Terms: Details the timing, method, and conditions for payment of referral fees

8. Representations and Warranties: States the parties' qualifications, licenses, and compliance with applicable laws

9. Confidentiality: Governs the handling of confidential information shared between parties

10. Term and Termination: Specifies the duration of the agreement and conditions for termination

11. Governing Law: Establishes Philippine law as governing law and outlines dispute resolution procedures

12. General Provisions: Includes standard clauses such as amendments, notices, and severability

What sections are optional to include in a Broker Referral Fee Agreement?

1. Non-Solicitation: Prohibits parties from directly soliciting each other's clients - include when dealing with sensitive client relationships

2. Exclusivity: Establishes whether the referral relationship is exclusive - include when parties want territorial or client-base exclusivity

3. Marketing and Promotion: Outlines how parties may market their referral relationship - include when public promotion is anticipated

4. Insurance Requirements: Specifies required insurance coverage - include when dealing with high-value transactions

5. Data Protection: Details handling of personal data - include when significant personal information will be shared

6. Force Majeure: Addresses unforeseen circumstances - include when long-term relationship is contemplated

7. Anti-Money Laundering Compliance: Details specific AML procedures - include for high-value real estate transactions

What schedules should be included in a Broker Referral Fee Agreement?

1. Schedule A - Fee Structure: Detailed breakdown of referral fee percentages for different types of transactions or property values

2. Schedule B - Referral Process Workflow: Step-by-step process flow for handling referrals, including timeframes and documentation requirements

3. Schedule C - Required Documentation: List of documents required for processing referrals and fee payments

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

5. Appendix 2 - Professional Credentials: Copies of relevant licenses and certifications

6. Appendix 3 - Territory Map: If applicable, map defining geographical territories for referrals

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

Philippines

Publisher

Ƶ

Document Type

Broker Agreement

Cost

Free to use
Relevant legal definitions








































Clauses


































Relevant Industries

Real Estate

Financial Services

Property Development

Commercial Property

Residential Property

Investment Services

Insurance

Property Management

Luxury Real Estate

Relevant Teams

Legal

Compliance

Sales

Business Development

Operations

Real Estate

Property Management

Client Relations

Finance

Risk Management

Documentation

Relevant Roles

Real Estate Broker

Property Agent

Business Development Manager

Sales Director

Compliance Officer

Legal Counsel

Real Estate Agency Owner

Branch Manager

Financial Broker

Insurance Broker

Property Consultant

Real Estate Investment Advisor

Senior Property Agent

Brokerage Firm Partner

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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