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.
A referral agreement for sharing commissions between a real estate broker and a real estate salesperson, agent, or realtor in Arizona is an essential contract that outlines the terms and conditions under which referral fees will be exchanged. This agreement is particularly relevant for individuals or entities involved in the real estate industry who want to establish a mutually beneficial relationship to generate more business opportunities. In Arizona, there are various types of referral agreements depending on the specific circumstances and parties involved. Some common types include: 1. Referral Agreement between Real Estate Broker and Real Estate Salesperson: This type of agreement is between a licensed real estate broker who is referring a client or prospect to a real estate salesperson within Arizona. Both parties agree to the terms and conditions, including the percentage of the referral fee to be paid upon a successful transaction. 2. Referral Agreement between Real Estate Brokerages: This agreement involves two separate real estate brokerages in Arizona where one brokerage refers a client or prospect to the other brokerage. The terms and conditions of the referral fee sharing are agreed upon, ensuring fair compensation for the referring brokerage. 3. Referral Agreement between Real Estate Salespersons: Sometimes, individual real estate salespersons or agents in Arizona may enter into referral agreements among themselves. If a salesperson cannot handle a specific client or transaction but has a colleague who is better suited, they can refer the client with an agreed-upon referral fee being paid upon a successful outcome. The Arizona referral agreement typically includes crucial details such as: 1. Parties Involved: Clearly identifies the real estate broker, salesperson, agent, or realtor who will be referring the client (referrer) and the receiving party (recipient). 2. Scope of Referral: Describes the scope of the referral, specifying the type of transaction or client being referred. 3. Referral Fee: States the percentage or fixed amount of the referral fee to be paid to the referrer upon a successful transaction. 4. Broker Responsibility: Outlines the responsibilities of the referring broker, including providing accurate information about the client or prospect and ensuring legal compliance during the referral process. 5. Recipient's Obligations: Specifies the obligations of the recipient, including diligently serving the referred client, maintaining proper communication, and pursuing the transaction to its successful conclusion. 6. Term and Termination: Establishes the duration of the referral agreement and outlines the conditions under which the agreement can be terminated. 7. Governing Law: Determines the jurisdiction and laws applicable to the referral agreement, typically being the state of Arizona. It is important for both parties to carefully review and understand the terms and conditions in the Arizona referral agreement before entering into the agreement. Consulting a legal professional or real estate association can provide further guidance to ensure compliance with Arizona's real estate regulations and guidelines.
