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 Virginia Referral Agreement is a legal document that outlines the terms and conditions of sharing commissions between a real estate broker and a real estate salesperson, agent, or realtor. This agreement is crucial when a real estate professional refers a client to another agent or broker in exchange for a share of the commission earned from the transaction. The agreement ensures that all parties involved are aware of their rights and responsibilities and provides clarity on the commission sharing arrangement. Here are some key details that are typically included in a Virginia Referral Agreement: 1. Parties Involved: The agreement clearly states the names and contact information of both the referring broker and the receiving broker. It also includes the details of the salesperson or agent who is acting as the referral source. 2. Referral Details: The agreement outlines the specific details of the referral, such as the client's name, address, and any pertinent information related to the property or transaction. 3. Commission Sharing: The agreement specifies the percentage or amount of the commission that will be shared between the referring broker and the receiving broker. Typically, the referral fee ranges from 20% to 35% of the total earned commission. 4. Payment Terms: This section outlines the timeframe and method of commission payment. It may include provisions for disbursing the referral fee upon successful completion of the transaction or when the receiving broker receives payment from the client. 5. Termination or Modification: The agreement may include clauses that allow either party to terminate or modify the referral agreement under certain circumstances. It may define the conditions for termination, such as an expiration date or completion of the referral transaction. 6. Governing Law: The agreement specifies that it is governed by the laws of Virginia and any disputes arising from the agreement will be resolved in accordance with the state's legal system. Different types of Virginia Referral Agreements may include exclusive referrals, non-exclusive referrals, and single transaction referrals: 1. Exclusive Referrals: In these agreements, the referring broker exclusively refers clients to a specific receiving broker. The referring broker cannot refer clients to any other broker during the specified period. 2. Non-Exclusive Referrals: Non-exclusive referrals allow the referring broker to refer clients to multiple receiving brokers simultaneously. It provides the referring broker with more flexibility in referring clients and increases the chances of earning referral fees. 3. Single Transaction Referrals: Single transaction referrals are limited to a specific real estate transaction. This type of referral agreement is commonly used when a client is looking for a specific property or requires specialized expertise. Once the transaction is complete, the referral agreement expires. In conclusion, a Virginia Referral Agreement is a crucial document that establishes the terms and conditions of commission sharing between a real estate broker and a salesperson, agent, or realtor. It ensures a clear understanding of the referral arrangement and protects the rights and interests of all parties involved.A Virginia Referral Agreement is a legal document that outlines the terms and conditions of sharing commissions between a real estate broker and a real estate salesperson, agent, or realtor. This agreement is crucial when a real estate professional refers a client to another agent or broker in exchange for a share of the commission earned from the transaction. The agreement ensures that all parties involved are aware of their rights and responsibilities and provides clarity on the commission sharing arrangement. Here are some key details that are typically included in a Virginia Referral Agreement: 1. Parties Involved: The agreement clearly states the names and contact information of both the referring broker and the receiving broker. It also includes the details of the salesperson or agent who is acting as the referral source. 2. Referral Details: The agreement outlines the specific details of the referral, such as the client's name, address, and any pertinent information related to the property or transaction. 3. Commission Sharing: The agreement specifies the percentage or amount of the commission that will be shared between the referring broker and the receiving broker. Typically, the referral fee ranges from 20% to 35% of the total earned commission. 4. Payment Terms: This section outlines the timeframe and method of commission payment. It may include provisions for disbursing the referral fee upon successful completion of the transaction or when the receiving broker receives payment from the client. 5. Termination or Modification: The agreement may include clauses that allow either party to terminate or modify the referral agreement under certain circumstances. It may define the conditions for termination, such as an expiration date or completion of the referral transaction. 6. Governing Law: The agreement specifies that it is governed by the laws of Virginia and any disputes arising from the agreement will be resolved in accordance with the state's legal system. Different types of Virginia Referral Agreements may include exclusive referrals, non-exclusive referrals, and single transaction referrals: 1. Exclusive Referrals: In these agreements, the referring broker exclusively refers clients to a specific receiving broker. The referring broker cannot refer clients to any other broker during the specified period. 2. Non-Exclusive Referrals: Non-exclusive referrals allow the referring broker to refer clients to multiple receiving brokers simultaneously. It provides the referring broker with more flexibility in referring clients and increases the chances of earning referral fees. 3. Single Transaction Referrals: Single transaction referrals are limited to a specific real estate transaction. This type of referral agreement is commonly used when a client is looking for a specific property or requires specialized expertise. Once the transaction is complete, the referral agreement expires. In conclusion, a Virginia Referral Agreement is a crucial document that establishes the terms and conditions of commission sharing between a real estate broker and a salesperson, agent, or realtor. It ensures a clear understanding of the referral arrangement and protects the rights and interests of all parties involved.
