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 Louisiana Referral Agreement, also known as a Sharing of Commission Agreement, is a legal contract that outlines the terms and conditions for the referral of clients or leads between a real estate broker and a real estate salesperson, agent, or realtor. This agreement establishes the commission sharing arrangement between the parties involved and ensures compliance with Louisiana real estate laws. In Louisiana, there are two major types of referral agreements commonly used between real estate professionals: 1. Louisiana Referral Agreement — Commission Sharing between Real Estate Broker and Salesperson: This agreement is typically used when a licensed real estate salesperson refers clients or leads to another licensed real estate broker for handling the transaction. It establishes the commission share that the referring salesperson will receive from the transaction, usually a percentage of the total commission earned by the broker upon successful completion of the sale or lease. 2. Louisiana Referral Agreement — Commission Sharing between Real Estate Broker and Agent/Realtor: In this scenario, licensed real estate agents or realtors refer clients or leads to another real estate broker, and this agreement determines the commission share that the referring agent or realtor will receive from the broker. Similar to the previous type, the commission share is typically a percentage of the total commission earned by the broker upon the successful closing of the transaction. Key terms and provisions commonly found in Louisiana Referral Agreements include: 1. Parties involved: The agreement will identify the real estate broker, the salesperson or agent/realtor making the referral, and any other relevant parties. 2. Referral compensation: The agreement will specify the amount or percentage of the commission that the referring salesperson, agent, or realtor will receive upon successful completion of the transaction. 3. Commission disbursement: It will outline when and how the commission will be disbursed, typically after the closing of the referred transaction. 4. Duration of the referral agreement: The agreement will mention the duration of the referral relationship, whether it is for a specific period or until the referred transaction is completed. 5. Termination and exclusivity: The agreement may include provisions regarding termination, allowing either party to end the referral relationship under specific circumstances. It may also address exclusivity, either permitting or restricting the referring party from making referrals to other brokers. It is important for both the broker and the referring real estate professional to carefully review and understand the terms and conditions of the Louisiana Referral Agreement before signing. Seeking legal advice or consulting with a real estate professional experienced in Louisiana referral agreements is recommended to ensure compliance with state laws and to protect the interests of all parties involved.
