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 Rhode Island referral agreement, also known as a sharing of commission agreement, is a legally binding contract between a real estate broker and a real estate salesperson, agent, or realtor. This agreement outlines the terms and conditions under which the referring party will receive a commission for referring a client or customer to the broker. In Rhode Island, there are several types of referral agreements that can be established between a broker and a salesperson or agent. These agreements may include: 1. Referral Fee Agreement: This type of agreement specifies that the referring party will receive a fixed fee or percentage of the commission earned by the broker once the referred client successfully completes a real estate transaction. 2. Commission Split Agreement: In this arrangement, the referring party and the broker agree to split the commission earned from the referred client. The percentage distribution is usually negotiated between the parties and stated in the agreement. 3. Exclusive Referral Agreement: This type of agreement establishes an exclusive relationship between the referring party and the broker, wherein the referring party agrees to refer clients exclusively to the broker in exchange for a commission share or fee. 4. Non-Exclusive Referral Agreement: Unlike an exclusive referral agreement, a non-exclusive agreement allows the referring party to refer clients to multiple brokers. In this case, the referring party may negotiate individual commission agreements with each broker. Regardless of the type of referral agreement, it is crucial to mention the essential elements in the document. The agreement should clearly state the identities of the parties involved, their contact information, and the effective date of the agreement. Additionally, the agreement should outline the referral fee or commission split structure, payment terms, and any conditions for earning the commission. It is important to note that referral agreements must comply with Rhode Island's real estate laws and regulations. Each party should consult with an attorney or a knowledgeable real estate professional to ensure that the agreement is legally valid and enforceable. In conclusion, a Rhode Island referral agreement is a comprehensive document that establishes the terms and conditions for sharing commissions between a real estate broker and a salesperson, agent, or realtor. Depending on the specific needs and preferences of the parties involved, different types of referral agreements can be established, including referral fee agreements, commission split agreements, exclusive referral agreements, and non-exclusive referral agreements.
