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 Pennsylvania Referral Agreement — Sharincommissionio— - Between Real Estate Broker and Real Estate Salesperson or Agent or Realtor is a legally binding document that outlines the terms and conditions for sharing commissions between a broker and a real estate salesperson/agent/realtor when referring clients. In Pennsylvania, there are several types of referral agreements based on specific circumstances: 1. Standard Referral Agreement: This is the most common type of referral agreement, where a real estate salesperson/agent/realtor refers a client to another real estate professional or brokerage, and a commission percentage is agreed upon for the referring party. 2. Intercompany Referral Agreement: This agreement is used when a referral is made within the same real estate brokerage or company. For example, if one agent refers a client to another agent within the same brokerage, a commission sharing agreement is set up. 3. Intergroup Referral Agreement: This agreement is used when a referral is made between different real estate brokerages or companies. When an agent from one brokerage refers a client to an agent from another brokerage, a commission sharing agreement is established. The Pennsylvania Referral Agreement should include the following key information: 1. Parties: Clearly state the names and contact information for the referring real estate salesperson/agent/realtor and the receiving real estate broker. 2. Client Information: Provide details about the referred client, including their names, contact information, and any relevant property details. 3. Referral Fee: Specify the commission percentage or flat fee that the referring party will receive for the referral. This should be clearly stated to avoid any conflicts or misunderstandings. 4. Commission Payment: Outline the method and timeline for commission payment, whether it will be paid directly to the referring party or through the respective brokerages. 5. Referral Responsibilities: Define the expectations and responsibilities of each party regarding the referred client, such as follow-up communication, client servicing, and keeping the referring party informed about the transaction progress. 6. Termination Clause: Include a clause that details the conditions under which the referral agreement can be terminated by either party. This should also include any provisions for dispute resolution. 7. Legal Compliance: State that both parties agree to comply with all applicable state and federal real estate laws and regulations. It's important to consult with a qualified attorney to ensure that the Pennsylvania Referral Agreement complies with all relevant state laws and protects the interests of both the referring party and the receiving broker.
