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.
Ohio Referral Agreement — Sharincommissionio— - Between Real Estate Broker and Real Estate Salesperson or Agent or Realtor In the state of Ohio, a referral agreement is a legally binding contract that outlines the terms and conditions under which a real estate broker and a real estate salesperson, agent, or realtor can collaborate to share commissions. This agreement is crucial for establishing a fair and transparent relationship between the two parties involved. A referral agreement serves as a formal understanding between the real estate broker and the salesperson, agent, or realtor who may not be licensed or authorized to conduct real estate transactions independently. It enables them to work together in a professional capacity, ensuring both parties receive fair compensation for their efforts. Types of Ohio Referral Agreements — Sharing of Commission: 1. Agent-to-Agent Referral Agreement: This type of agreement comes into play when a licensed real estate agent refers a client or a potential buyer to another agent who operates in a different geographical area or specializes in a specific niche. The referring agent receives a referral fee or a share of the commission earned when the referred client successfully completes a transaction. 2. Broker-to-Broker Referral Agreement: When a real estate broker refers a client or a potential buyer to another broker, this type of referral agreement is used. The referring broker receives a referral fee or a share of the commission earned when the referred client successfully completes a transaction with the receiving broker. 3. Broker-to-Agent Referral Agreement: In instances where a real estate broker refers a client or a potential buyer to an agent rather than another broker, this type of referral agreement is utilized. The referring broker receives a referral fee or a share of the commission earned when the referred client successfully completes a transaction with the referred agent. Ohio's referral agreements typically address the following key aspects: 1. Parties involved: Clearly identify the real estate broker, salesperson, agent, or realtor, and their respective companies involved in the referral agreement. 2. Referral fees or commission shares: Establish the percentage or flat fee that the referring party is entitled to receive upon the successful completion of a referred transaction. 3. Responsible party: Specify which party is responsible for paying the referral fee or commission share. 4. Client information: Describe how the referring party will provide client information to the receiving party, including details regarding the referred client's needs, interests, and contact information. 5. Confidentiality: Emphasize the importance of maintaining client confidentiality and prohibiting unauthorized sharing of client information. 6. Termination clause: Include provisions that outline the circumstances under which the referral agreement may be terminated by either party, along with any associated notice periods. Ohio's referral agreements are intended to promote collaboration and synergy within the real estate industry while ensuring fair compensation for the parties involved. They provide a clear framework for agents, salespersons, brokers, and realtors to work together effectively and maximize their earning potential.
