The Real Estate Referral Agreement (Real Estate) is essential for Canadian real estate professionals and brokerages looking to establish formal referral relationships. This document is commonly used when a real estate professional wishes to refer clients to another professional or brokerage, typically in exchange for a referral fee. It ensures compliance with provincial real estate regulations and federal laws while protecting all parties' interests. The agreement is particularly valuable when dealing with inter-provincial referrals or when establishing ongoing referral relationships. It includes crucial details about referral processes, fee structures, professional obligations, and compliance requirements specific to the Canadian real estate industry. This document helps maintain professional standards and clear communication channels between parties while managing potential risks and legal obligations.
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1. Parties: Identification of the referring and receiving real estate professionals/brokerages, including license numbers and contact information
2. Background: Context of the agreement and brief description of the parties' business relationship
3. Definitions: Key terms used throughout the agreement, including 'Referral', 'Referral Fee', 'Referred Client', and 'Successful Transaction'
4. Referral Terms: Process for making and accepting referrals, including communication protocols and timeline requirements
5. Compensation: Structure and calculation of referral fees, payment terms, and conditions for fee eligibility
6. Representations and Warranties: Parties' confirmations regarding licensing status, authority to enter agreement, and compliance with laws
7. Confidentiality: Obligations regarding client information and business data protection
8. Term and Termination: Duration of the agreement and conditions for termination
9. Professional Obligations: Commitment to maintain professional standards and comply with real estate regulations
10. General Provisions: Standard clauses including governing law, entire agreement, amendments, and notices
1. International Referral Provisions: Additional terms for cross-border referrals, including currency conversion and international compliance requirements
2. Exclusive Arrangement: Terms establishing exclusivity between parties, if applicable
3. Marketing and Co-Branding: Guidelines for how parties may market their referral relationship and use each other's brands
4. Dispute Resolution: Specific procedures for handling disputes, including mediation or arbitration provisions
5. Insurance Requirements: Specific insurance coverage requirements for each party
6. Data Protection: Detailed provisions for handling personal data in compliance with privacy laws
7. Training and Support: Terms regarding any training or support provided between parties for handling referrals
1. Schedule A - Referral Fee Structure: Detailed breakdown of referral fee percentages and calculation methods
2. Schedule B - Referral Process: Step-by-step procedure for making and accepting referrals
3. Schedule C - Territory Definition: Geographical areas covered by the referral arrangement
4. Schedule D - Required Documentation: List of documents required for processing referrals
5. Appendix 1 - Referral Form Template: Standard form for submitting referral information
6. Appendix 2 - Compliance Checklist: Checklist ensuring all regulatory requirements are met for each referral
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