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 District of Columbia Referral Agreement — Sharing of Commission is a contractual agreement between a real estate broker and a real estate salesperson, agent, or realtor that outlines the terms and conditions for sharing commissions earned from referring clients to each other. This agreement is important in the real estate industry as it ensures fair compensation and promotes collaboration between professionals. In the District of Columbia, there are different types of referral agreements that can be used, depending on the specific circumstances and preferences of the parties involved. These may include: 1. Referral Fee Agreement: A referral fee agreement is a straightforward contract where the real estate broker agrees to pay a predetermined amount or percentage of the commission to the referring salesperson, agent, or realtor upon successful completion of the referral. 2. Dual Agency Referral Agreement: Dual agency referral agreements are applicable when a real estate broker represents both the buyer and the seller in a transaction. In such cases, a referral fee may be agreed upon between the dual agent and the referring salesperson, agent, or realtor for the referral of either the buyer or the seller. 3. Team Referral Agreement: A team referral agreement is commonly used when real estate professionals work as part of a team. In this scenario, the team leader or broker shares a portion of the commission with the referring team member who generates a successful referral. 4. Exclusive Referral Agreement: An exclusive referral agreement ensures that only the referring salesperson, agent, or realtor receives the commission for a specific referral. This type of agreement may be used when multiple agents or brokers are involved in the referral process, but only one party is entitled to the commission. 5. Conditional Referral Agreement: A conditional referral agreement is utilized when the payment of the referral fee is contingent upon certain conditions being met. For example, the referring agent may only receive a commission if the referral leads to a closed sales transaction within a specified period. These various types of referral agreements provide flexibility to accommodate different business models, working relationships, and transaction scenarios in the District of Columbia real estate industry. It is essential for both brokers and salespersons, agents, or realtors to clearly define their rights, obligations, and compensation arrangements through a detailed and well-drafted referral agreement.
