A referral program is an arrangement through which a person or business directs leads to your business. The referrer recommends the service to the new potential client to increase the chance of a sale. This type of agreement is common for a broker who is constantly looking for new business. As the broker, you would commonly compensate the referrer with a commission, also called a finder's fee, for each lead that turns into a sale.
Broker Referral Agreement This Broker Referral Agreement (this Agreement) is made this (date), by and between ABC, Inc., a corporation organized and existing under the laws of the state of (name of state), with its principal office located at (street address, city, state, zip code), referred to herein as ABC, and (Name of Broker), of (street address, city, state, zip code), hereinafter called the Broker. Whereas, Broker intends to refer to ABC potential purchasers of property located at (street address, city, state, zip code), said property (the Property) being more particularly described hereto as Exhibit A and/or any other project which Broker is providing sales and marketing services; and Whereas, in return for referring potential purchasers to ABC, ABC agrees to pay to Broker a Referral Fee (as defined below), under and upon the terms and conditions set forth in this Agreement. For and in consideration of the mutual covenants contained in this Agreement, and other good and valuable consideration, the parties agree as follows: 1. Term. The term of this Agreement shall be twelve (12) months from the date hereof provided that ABC shall have the unilateral right at any time to terminate this Agreement for any reason by providing written notice to Broker. The term of this Agreement may be renewed for additional one (1) year periods with the written approval of the parties. 2. Referred Purchaser. Broker shall present ABC with potential purchasers who have engaged and have an agreement with Broker relating to the purchase of property (each a Referred Purchaser). Broker shall register all Referred Purchasers with ABC. 3. Referral Fee. The amounts to be paid by ABC to Broker pursuant to this Agreement shall be as follows: a sum (herein called the Referral Fee) equal to ____% of the net sales price for any land purchases, ____% of the net sales price for any such purchases. ABC shall pay Broker the Referral Fee for any Broker Referral within five (5) business days following the successful closing of the property corresponding with such Referral Fee. 4. Not Agent. Broker is not, and at no time shall Broker be deemed in any way, to be an agent of ABC, and ABC shall not be bound by or liable for any representations made by Broker. 5. Indemnification. Broker hereby agrees to, and hereby does, hold ABC harmless and agrees to indemnify and defend ABC, from and against all claims, demands, actions, suits, liabilities, damages, costs, and expenses (including attorneys’ fees and costs) in any manner arising out of, caused by or related to any representations made by Broker and/or the claim of any other broker, salesperson
Pages to are hidden for
"Broker Referral Agreement"Please download to view full document