Referrals are the lifeblood of every healthy real estate business. Receiving agents get warmer leads who are easier to close, and referring agents get to boost their GCI while someone else does the heavy lifting. An easy win/win in an industry that thrives on uncertainty.
Real estate referral agreements — the contracts that dictate the terms of your referrals — are trickier. A vaguely worded referral agreement that’s light on detail can sow confusion between your brokerage and the receiving brokerage. This confusion can lead to disputes that can sour your reputation in the market.
We created this guide for creating real estate referral agreements to help you avoid disputes and build more trust in your market. Use it to create a custom agreement for your brokerage, or download our referral agreement below.
Anatomy of a real estate referral agreement: what you must include and why
Let’s look at the sections we suggest you include in your real estate referral agreement and discuss why they’re crucial to a successful referral. The level of detail in our sample referral agreement below might seem overkill initially, but this is intentional. The primary goal of a referral agreement is to be a single source of truth for the agents and brokers involved. The more details you include in the agreement, the fewer disputes you’ll have when the receiving agent starts working with the referred client.
A good referral agreement should include every detail the referring agent knows about the client. This allows the receiving agent to rely solely on the agreement for anything she needs to know to transact with the client successfully.
1. Parties to the agreement
The first section of a referral agreement must identify the brokers of record who are parties to the agreement. Much like a buyer representation agreement, a referral agreement is between the brokers of record at the referring and receiving brokerages. Ensure you include license numbers and contact information for each broker of record.
Referring brokerage __________________
Broker of Record _________________________
License number __________________________
Address _______________________
Phone number __________________
Email _________________________
Receiving brokerage______________________
Broker of Record ______________________________
License number _______________________________
Phone number __________________
Email _________________________
2. Authorized agents
The next section of a referral agreement covers the agents involved in the referral. While not technically parties to the agreement, including their contact information helps reinforce the idea that the referral agreement is their single source of truth for the referral.
For communication purposes only, this agreement remains between the brokerages.
Referring brokerage agent
Name ___________________
license number _________________
Phone number __________________
Email _________________________
Receiving brokerage agent
Name ___________________
License number _________________
Phone number __________________
Email _________________________
3. Referred client information
The following section of a referral agreement focuses on the referred client. This section should include as much detail about the client as possible. The more detail you include, the fewer disputes you will have. If the referring agents don’t have some information listed here, have them write “NA” in the space provided. It is critical to leave space for the referring agent to describe their client’s reasons for moving. The receiving agent might claim they did not have enough information to close the client or had to do more work than anticipated.
Another critical element of the agreement is the confirmation of the buyer representation agreement. Some states have agency laws that may require an agent to have a signed buyer agency agreement to collect a referral fee. Check with your association or attorney to see if this applies to your state.
Name ______________________________
Work phone number ___________________
Cell phone number ____________________
Email __________________________
Current address __________________
Number of adults in move __
Number of children in move __
Has the client been pre-qualified? ☐ Yes ☐ No
Lender information _____________________
Estimated moving date ___/___/_______
Reason for moving ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Current property
Client is a ☐ Renter ☐ Homeowner
Client must sell ☐ Yes ☐ No
Estimated listing price or current property _________________
Desired property
Intended Use of desired property: ☐ Primary Residence☐ Second Home/Vacation Property
☐ Investment Property (Rental, Commercial, or Other Income-Producing Use)
Price range ________________________
Estimated down payment ____________________
Preferred area__________________________
Number of bedrooms __ Number of baths __ square footage ______
Additional requirements ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Buyer representation agreement confirmation
☐ The Broker of Record confirms that a signed Buyer Representation Agreement is in place between the brokerage and the referred client.
By checking this box, the referring brokerage affirms that a valid Buyer Representation Agreement has been executed between the brokerage and the referred client.
4. Referral fee terms
The referral fee terms section is where your referral agreement’s rubber meets the road. Here, you must clarify the exact amount of the referral fee and the terms under which it must be paid.
Payment method details can help your referral agreement function as the sole source of truth for the referral. The brokers of record and the agents should refer to the referral agreement and only the referral agreement for information about the referral.
Referral Fee Amount: The receiving brokerage agrees to pay the referring brokerage a referral fee of __% of the gross commission received from the referred client’s transaction.
Payment Conditions: The referral fee shall be payable only upon the successful closing of a transaction involving the referred client unless otherwise agreed in writing.
Payment Due Date: The referral fee shall be paid to the referring brokerage within __ business days after the receiving brokerage receives the commission.
Client Protection Period: The referring brokerage shall be entitled to the agreed referral fee for any transaction the referred client enters into within __ months from the date of this agreement, provided the receiving brokerage represents the client in that transaction.
Payment Method: The referral fee shall be paid via _______________ to the referring brokerage at the following address or account details:
Payee Name: ________________________________
Mailing Address: _____________________________
Bank Name (if applicable): ______________________
Account Number: ____________________________
Routing Number: _____________________________
Assignment of New Agent: If the receiving brokerage assigns the referred client to a new agent within the same brokerage, the referral fee obligation remains the responsibility of the receiving brokerage. The referral fee shall be paid in accordance with the terms of this agreement, regardless of the reassignment of the referred client to a different agent.
5. Signatures and acknowledgement
As the name suggests, a referral agreement’s signatures and acknowledgment section allows the brokers of record to sign their names to seal the deal.
By signing below, both parties agree to the terms outlined in this Referral Agreement.
Referring Broker of Record:
Signature: ___________________________
Name: ___________________________
Date: ___________________________
Receiving Broker of Record:
Signature: ___________________________
Name: ___________________________
Date: ___________________________
