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.
Washington Referral Agreement — Sharincommissionio— - Between Real Estate Broker and Real Estate Salesperson or Agent or Realtor In the real estate industry, it is common for real estate brokers to enter into referral agreements with real estate salespersons, agents, or realtors to share commissions. Washington's state recognizes the importance of such agreements and has established guidelines and requirements to ensure a fair and transparent process. Let's delve into the various types of Washington referral agreements and their details. 1. Standard Washington Referral Agreement: The standard referral agreement is the most common type, wherein a real estate salesperson, agent, or realtor refers a client to a real estate broker in exchange for a percentage of the commission earned on the referred transaction. This agreement outlines the terms and conditions of the referral, including the commission percentage, payment timeline, and any additional terms both parties agree upon. 2. Exclusive Referral Agreement: An exclusive referral agreement grants the real estate salesperson, agent, or realtor exclusive rights to refer clients to a particular real estate broker. In return, the real estate broker agrees to work exclusively with the referrer and shares the commission accordingly. This agreement ensures a strong working relationship between the parties involved and simplifies the referral process. 3. Non-Exclusive Referral Agreement: A non-exclusive referral agreement allows the real estate salesperson, agent, or realtor to refer clients to multiple real estate brokers simultaneously. The commission-sharing terms may vary for each referral, and the referrer has the flexibility to choose different brokers for different transactions. This type of agreement provides greater freedom to the real estate salesperson, agent, or realtor in expanding their network and earning potential. 4. Referral Fee Agreement: While referral agreements primarily focus on sharing commissions, a referral fee agreement allows the real estate salesperson, agent, or realtor to receive a flat fee for referring a client to a real estate broker. This type of agreement is useful when the transaction value is too low to warrant a percentage-based commission. The agreement specifies the referral fee amount, payment terms, and other relevant conditions. Regardless of the specific type of Washington referral agreement, it is crucial for both parties to clearly define the scope of referral services, the expected commission or fee sharing, and any additional terms or restrictions. To ensure compliance with state regulations, it is advisable for real estate brokers, salespersons, agents, and realtors to consult legal professionals or review the Washington state real estate laws pertaining to referral agreements. By establishing solid referral agreements, real estate professionals can foster mutually beneficial relationships, expand their client base, and enhance their overall business opportunities.
