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.
Montgomery Maryland Referral Agreement — Sharincommissionio— - Between Real Estate Broker and Real Estate Salesperson or Agent or Realtor In the Montgomery, Maryland real estate market, referral agreements play a crucial role in establishing solid partnerships between real estate brokers and salespersons or agents. These agreements outline how commissions will be shared when a client is referred to another real estate professional within the same area. There are different types of referral agreements specific to Montgomery, Maryland, depending on the arrangement between the broker and the salesperson or agent: 1. Percentage-based Commission Sharing Agreement: This type of agreement specifies a percentage split of the commission earned from a referred client between the referring broker and the receiving salesperson or agent. For example, the agreement may state that the referring broker will receive 30% of the commission, while the receiving real estate professional will receive 70%. 2. Fixed Fee Commission Sharing Agreement: In some cases, referral agreements may establish a fixed fee that will be paid to the referring broker upon a successful referral. This fixed fee can be a set dollar amount agreed upon by both parties. 3. Tiered Commission Sharing Agreement: This type of referral agreement establishes a tiered structure, where the commission split percentage varies depending on the number of referrals made within a specific timeframe. For instance, if a salesperson or agent consistently refers clients, the split may increase from 20% to 30% after a certain number of successful referrals. 4. Exclusive Referral Agreement: An exclusive referral agreement restricts the referring salesperson or agent from referring clients to any other real estate professional within Montgomery, Maryland, except for the receiving broker specified in the agreement. Exclusive referral agreements often come with additional benefits or incentives for the referring real estate professional, such as priority access to new listings or marketing assistance. Regardless of the type of referral agreement, it is essential to include the following key elements: a. Parties involved: Clearly identify the referring broker and the receiving salesperson or agent by their full legal names and contact information. b. Description of referral responsibilities: Outline the obligations of both parties concerning providing accurate and timely information about the referred client. c. Commission-sharing terms: Detail the percentage or fixed fee that will be shared between the referring broker and the receiving salesperson or agent upon a successful referral resulting in a closed transaction. d. Termination clause: Include provisions regarding the conditions under which either party can terminate the agreement. e. Governing law and jurisdiction: Specify the legal jurisdiction under which any disputes will be resolved. f. Effective date and duration: Clearly state the start date of the referral agreement and whether it has a specific end date or will continue indefinitely until terminated by either party. A well-crafted referral agreement is crucial for maintaining transparency and fair compensation between real estate brokers and salespersons or agents in Montgomery, Maryland. By establishing clear expectations and terms, these agreements foster successful collaborations and provide a solid foundation for a robust referral network within the local real estate market.Montgomery Maryland Referral Agreement — Sharincommissionio— - Between Real Estate Broker and Real Estate Salesperson or Agent or Realtor In the Montgomery, Maryland real estate market, referral agreements play a crucial role in establishing solid partnerships between real estate brokers and salespersons or agents. These agreements outline how commissions will be shared when a client is referred to another real estate professional within the same area. There are different types of referral agreements specific to Montgomery, Maryland, depending on the arrangement between the broker and the salesperson or agent: 1. Percentage-based Commission Sharing Agreement: This type of agreement specifies a percentage split of the commission earned from a referred client between the referring broker and the receiving salesperson or agent. For example, the agreement may state that the referring broker will receive 30% of the commission, while the receiving real estate professional will receive 70%. 2. Fixed Fee Commission Sharing Agreement: In some cases, referral agreements may establish a fixed fee that will be paid to the referring broker upon a successful referral. This fixed fee can be a set dollar amount agreed upon by both parties. 3. Tiered Commission Sharing Agreement: This type of referral agreement establishes a tiered structure, where the commission split percentage varies depending on the number of referrals made within a specific timeframe. For instance, if a salesperson or agent consistently refers clients, the split may increase from 20% to 30% after a certain number of successful referrals. 4. Exclusive Referral Agreement: An exclusive referral agreement restricts the referring salesperson or agent from referring clients to any other real estate professional within Montgomery, Maryland, except for the receiving broker specified in the agreement. Exclusive referral agreements often come with additional benefits or incentives for the referring real estate professional, such as priority access to new listings or marketing assistance. Regardless of the type of referral agreement, it is essential to include the following key elements: a. Parties involved: Clearly identify the referring broker and the receiving salesperson or agent by their full legal names and contact information. b. Description of referral responsibilities: Outline the obligations of both parties concerning providing accurate and timely information about the referred client. c. Commission-sharing terms: Detail the percentage or fixed fee that will be shared between the referring broker and the receiving salesperson or agent upon a successful referral resulting in a closed transaction. d. Termination clause: Include provisions regarding the conditions under which either party can terminate the agreement. e. Governing law and jurisdiction: Specify the legal jurisdiction under which any disputes will be resolved. f. Effective date and duration: Clearly state the start date of the referral agreement and whether it has a specific end date or will continue indefinitely until terminated by either party. A well-crafted referral agreement is crucial for maintaining transparency and fair compensation between real estate brokers and salespersons or agents in Montgomery, Maryland. By establishing clear expectations and terms, these agreements foster successful collaborations and provide a solid foundation for a robust referral network within the local real estate market.
