The Broker Referral Fee Agreement is essential for real estate professionals seeking to formalize referral relationships while maintaining compliance with U.S. federal and state regulations. This document is commonly used when brokers want to establish a systematic approach to sharing business opportunities across different markets or specialties. The agreement typically addresses key aspects such as referral qualification criteria, fee calculations, payment timing, and regulatory compliance. It's particularly important in ensuring compliance with RESPA and state-specific real estate laws while protecting the interests of all parties involved in the referral relationship.
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1. Parties: Identifies the referring broker and receiving broker with full legal names and addresses
2. Background: Explains the context of the referral arrangement and the parties' intentions
3. Definitions: Defines key terms used throughout the agreement including 'Referral', 'Referral Fee', 'Qualified Lead'
4. Referral Terms: Details the specific requirements for what constitutes a valid referral
5. Fee Structure: Specifies the referral fee amount or percentage and payment terms
6. Payment Terms: Outlines when and how payments will be made
7. Term and Termination: Specifies duration of agreement and termination conditions
8. Governing Law: Specifies applicable jurisdiction and legal framework
1. Non-Solicitation: Prevents parties from directly soliciting referred clients
2. Exclusivity: Defines whether the referral arrangement is exclusive
3. Marketing and Promotion: Guidelines for how parties can market the referral relationship
4. Dispute Resolution: Specifies mediation or arbitration procedures
1. Fee Schedule: Detailed breakdown of fee structures for different types of referrals
2. Referral Process Flow: Step-by-step process for handling referrals
3. Required Documentation: List of documents required for processing referrals
4. Territory Definition: Geographic areas covered by the agreement
Relevant legal definitions
Clauses
Relevant Industries
Relevant Teams
Relevant Roles
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