Question: What is the standard thing to do to 1) keep the out-of-state broker from going around you. For example, should the out-of-state broker sign the referral form first (i.e., before you give out the client’s name); and 2) How do you ensure you get paid?
Thanks for your question, Rodney. Referrals are a great way to build your business, but out-of-state clients and properties can present complex issues. To ensure the referral relationship meets your needs, make sure you have a contract in place. Every referral contract should at least include the agent and broker licensure on both sides of the transaction, the duration of contract, and specifics of the agreed upon referral fee as a percentage of earned commission.
Check out our guide to real estate referral fees, which includes a free agreement template, here: https://fitsmallbusiness.com/real-estate-referral-fees/
For more general information about real estate license reciprocity, portability, and referrals, check out our guide here: https://fitsmallbusiness.com/real-estate-license-reciprocity/
Best of luck,
You must be logged in to reply to this topic.
Not signed in?
Sign in to participate on our website!
315 Madison Avenue, 24th Floor
New York, NY 10017
Disclaimer: We spend hours researching and writing our articles and strive to provide accurate, up-to-date content. However, our research is meant to aid your own, and we are not acting as licensed professionals. We recommend that you consult with your own lawyer, accountant, or other licensed professional for relevant business decisions. Click here to see our full disclaimer.
Product or company names, logos, and trademarks referred to on this site belong to their respective owners.