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 in the context of Oregon real estate refers to an arrangement between a real estate broker and a salesperson or agent, where the broker agrees to refer potential clients or leads to the salesperson or agent in exchange for a portion of the commission earned from any resulting transactions. This agreement ensures fair compensation for both parties involved and outlines the terms and conditions of the referral partnership. There are various types of referral agreements that can be established between a broker and a salesperson or agent in Oregon. Firstly, there is the standard referral agreement, which outlines the percentage or amount of commission that the broker will receive for every transaction resulting from their referral. This agreement is common when the broker has an existing client base but prefers not to handle certain transactions themselves. Another type is the reciprocal referral agreement, where both the broker and the salesperson or agent agree to refer potential clients to each other. In this case, both parties share the commission for the transactions resulting from their respective referrals. This arrangement is beneficial when both the broker and the salesperson or agent have complementary areas of expertise and can effectively leverage each other's networks. Additionally, there may be exclusive referral agreements, where the broker and the salesperson or agent agree to work exclusively with each other for a specific period. This arrangement ensures that all referrals will be directed to the designated salesperson or agent, providing them with a consistent source of potential clients. These exclusive agreements often include a higher percentage of commission for the salesperson or agent, as they are expected to handle all referrals exclusively. It's important to note that referral agreements in Oregon must comply with the state's real estate regulations and must have clear terms and conditions outlined in writing. This helps avoid any misunderstandings or disputes in the future and ensures a fair sharing of commissions between the broker and the salesperson or agent. Overall, referral agreements play a crucial role in facilitating collaboration and mutual benefit between brokers and salespersons or agents in the Oregon real estate industry.
