Out of State Referrals
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,