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.
Colorado Referral Agreement — Sharincommissionio— - Between Real Estate Broker and Real Estate Salesperson or Agent or Realtor: A referral agreement is a legal document that outlines the terms and conditions between a real estate broker and a salesperson, agent, or realtor regarding the sharing of commissions. In Colorado, there are different types of referral agreements that can be established depending on the specific arrangement between the parties involved. Here are some key details to consider: 1. Standard Referral Agreement: This type of agreement is commonly used when a real estate broker refers a client or potential buyer/seller to another real estate salesperson, agent, or realtor. The agreement details that the referral fee or commission will be shared between the referring broker and the recipient salesperson/agent. 2. In-House Referral Agreement: Occasionally, a referral agreement may be established within the same brokerage firm. This occurs when a real estate broker refers a client to another salesperson or agent within the same brokerage. In such cases, the referral fee or commission is typically shared within the specific brokerage, as per their internal policies. 3. Third-Party Referral Agreement: In some instances, a real estate broker may refer a client or potential buyer/seller to an external salesperson, agent, or realtor who belongs to a different brokerage. This type of referral agreement ensures that the referring broker receives a share of the commission when the referred client successfully completes a transaction. 4. Referral Fee Percentage: The referral agreement specifies the percentage or amount of the commission that the referring broker is entitled to receive upon the successful completion of the referred transaction. The percentage or amount is typically agreed upon by both parties and may vary depending on the specific circumstances. 5. Duration and Validity: Referral agreements in Colorado also outline the duration and validity of the agreement. It may state the specific timeline during which the referral is valid, and whether the agreement can be extended or terminated earlier under certain circumstances. 6. Duties and Obligations: The referral agreement may also outline the duties and obligations of both parties involved. This could include expectations regarding communication, confidentiality, and any additional responsibilities that the referring broker or the recipient salesperson/agent need to fulfill. 7. Legal Compliance: Finally, it is crucial that every referral agreement complies with all applicable laws and regulations in Colorado. Both parties must ensure that their actions are ethical and within the bounds of the real estate industry's guidelines. In conclusion, a Colorado Referral Agreement for commission sharing between a real estate broker and a real estate salesperson, agent, or realtor is a detailed document that protects the interests of both parties involved. The agreement specifies the type of referral, the commission percentage, the duration, and any additional details necessary for a successful referral transaction.
