This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
In Arkansas, a referral agreement serves as a crucial framework for the sharing of commissions between real estate brokers and salespersons, agents, or realtors. This agreement outlines the terms, conditions, and compensation arrangements when one real estate professional refers a client or business opportunity to another. By understanding the different types of referral agreements in Arkansas, brokers and agents can forge mutually beneficial partnerships while complying with state regulations. 1. Single Referral Agreement: This type of referral agreement is designed for a one-time referral when a salesperson or agent refers a client to another broker. It outlines the referral fee to be paid upon the successful completion of the transaction. 2. Reciprocal Referral Agreement: In a reciprocal referral agreement, two real estate brokers mutually agree to refer business to each other. Each broker agrees to pay a referral fee to the other if a referred client successfully completes a transaction. This arrangement fosters a symbiotic relationship where both brokers benefit from expanding their client base. 3. Exclusive Referral Agreement: An exclusive referral agreement establishes an exclusive relationship between a salesperson or agent and a broker. It specifies that all referrals made by the salesperson or agent will be directed solely to the agreed-upon broker. In return, the broker agrees to pay a predetermined referral fee for each successful transaction resulting from the referral. 4. Open-ended Referral Agreement: This type of referral agreement allows for ongoing referrals between brokers and salespersons or agents. It grants the salesperson or agent the freedom to refer clients to various brokers without any exclusivity requirement. In this case, the referral fee and terms are typically negotiated on a per-referral basis. Regardless of the specific type of referral agreement, it is essential for the parties involved to clearly define the referral fee percentage or amount, the conditions for payment, and the overall duration or validity period of the agreement. Additionally, the agreement should comply with the regulations set by the Arkansas Real Estate Commission and any other relevant state laws. By implementing these referral agreements, real estate professionals in Arkansas can leverage their networks and extend their business opportunities while earning fair compensation for their referrals.In Arkansas, a referral agreement serves as a crucial framework for the sharing of commissions between real estate brokers and salespersons, agents, or realtors. This agreement outlines the terms, conditions, and compensation arrangements when one real estate professional refers a client or business opportunity to another. By understanding the different types of referral agreements in Arkansas, brokers and agents can forge mutually beneficial partnerships while complying with state regulations. 1. Single Referral Agreement: This type of referral agreement is designed for a one-time referral when a salesperson or agent refers a client to another broker. It outlines the referral fee to be paid upon the successful completion of the transaction. 2. Reciprocal Referral Agreement: In a reciprocal referral agreement, two real estate brokers mutually agree to refer business to each other. Each broker agrees to pay a referral fee to the other if a referred client successfully completes a transaction. This arrangement fosters a symbiotic relationship where both brokers benefit from expanding their client base. 3. Exclusive Referral Agreement: An exclusive referral agreement establishes an exclusive relationship between a salesperson or agent and a broker. It specifies that all referrals made by the salesperson or agent will be directed solely to the agreed-upon broker. In return, the broker agrees to pay a predetermined referral fee for each successful transaction resulting from the referral. 4. Open-ended Referral Agreement: This type of referral agreement allows for ongoing referrals between brokers and salespersons or agents. It grants the salesperson or agent the freedom to refer clients to various brokers without any exclusivity requirement. In this case, the referral fee and terms are typically negotiated on a per-referral basis. Regardless of the specific type of referral agreement, it is essential for the parties involved to clearly define the referral fee percentage or amount, the conditions for payment, and the overall duration or validity period of the agreement. Additionally, the agreement should comply with the regulations set by the Arkansas Real Estate Commission and any other relevant state laws. By implementing these referral agreements, real estate professionals in Arkansas can leverage their networks and extend their business opportunities while earning fair compensation for their referrals.
