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Real Estate Referral Fee Agreement
"I need a Real Estate Referral Fee Agreement for my nationwide agency network in New Zealand, establishing a 25% referral fee for residential properties and 30% for commercial properties, with the agreement to commence from March 1, 2025."
1. Parties: Identifies the referring party and the receiving agent/agency, including license numbers and contact details
2. Background: Explains the context of the agreement and the parties' intentions to enter into a referral arrangement
3. Definitions: Defines key terms used in the agreement, including 'Referral', 'Successful Transaction', 'Referral Fee', and 'Referred Client'
4. Referral Arrangement: Details the process for making and accepting referrals, including communication requirements and timeframes
5. Referral Fee Structure: Specifies the agreed-upon referral fee amount or percentage and calculation method
6. Payment Terms: Outlines when and how referral fees will be paid, including any conditions precedent
7. Obligations and Responsibilities: Lists the duties of each party, including compliance with real estate regulations and professional standards
8. Term and Termination: Specifies the duration of the agreement and circumstances for termination
9. Confidentiality: Addresses the handling of confidential information and client data
10. Compliance: Ensures adherence to relevant laws and regulations, including AML/CFT requirements
11. General Provisions: Standard contract clauses including governing law, dispute resolution, and amendments
1. Non-Exclusive Arrangement: Include when parties want to explicitly state that the referral arrangement is non-exclusive
2. International Referrals: Include when the agreement covers international property referrals
3. Marketing and Promotion: Include when parties wish to specify how they can market or promote the referral relationship
4. Professional Indemnity Insurance: Include when specific insurance requirements need to be maintained
5. Data Protection: Include detailed data protection provisions when handling sensitive client information across different jurisdictions
6. Force Majeure: Include when parties want to address circumstances beyond their control that may affect the agreement
1. Schedule 1 - Fee Schedule: Detailed breakdown of referral fee percentages for different types of transactions or property values
2. Schedule 2 - Referral Process: Step-by-step process for making and accepting referrals, including required forms and timeframes
3. Schedule 3 - Territory Definition: If applicable, defines the geographic areas covered by the referral arrangement
4. Appendix A - Referral Form Template: Standard form to be used when making referrals
5. Appendix B - Compliance Checklist: Checklist ensuring all regulatory requirements are met for each referral
Authors
Real Estate
Property Development
Property Management
Commercial Property
Residential Property
Real Estate Investment
Property Services
Professional Services
Construction
Housing
Legal
Compliance
Sales
Business Development
Operations
Commercial Property
Residential Property
Contract Administration
Risk Management
Property Management
Real Estate Agent
Property Manager
Real Estate Broker
Branch Manager
Sales Director
Compliance Officer
Real Estate Business Development Manager
Real Estate Franchise Owner
Agency Principal
Commercial Property Agent
Residential Sales Consultant
Legal Counsel
Contracts Administrator
Real Estate Operations Manager
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