The Referral Fee Agreement broker published by RPI (Realty Publications, Inc.) is used by an agent if he accepts another broker or agent to pay a fee in exchange for the recommendation of a client who needs the services of the other broker. In addition, the broker referral fee agreement is used to identify the person in question and document the amount and terms of payment of the transfer fee. [See RPI form 114] Although not granted by the California Bureau of Real Estate (CalBRE) or accepted as members of a real estate trading association, researchers are authorized by state codes to request buyers, sellers, borrowers, lenders, tenants or lenders for transfer to real estate agents, real estate agents or contractors. Thus, as a profession, they provide guidance on who can participate in real estate transactions. Here, the referring agent must document the transfer to ensure that the transfer fee that the other agent promises to pay. The best proof of the agreement is a form for the reference tax. [See RPI form 114] This form is used by an agent if he agrees to obtain a fee to be paid by another broker for the transfer of a person who needs the services of the other broker and his agents in order to document the identity of that person and the terms of payment of the transfer fee. In the first section of the brokerage fee agreement, the agents involved in the recommendation are identified as reference brokers and brokers, as well as their associate licensees. It also designates the potential customer as either a: Click on the image below, To view/download the presentation in PDF format Although a verbal agreement between brokers is fully applicable for a recommendation, a documented agreement clearly states: Article: A broker-fresh recommendation agreement How agents best serve certain clients, it is to refer them to another broker or agent that they know he is able to provide the brokerage service that the client needs. Thus, the broker who makes the transfer correctly charges a fee from the brokerage office that accepts the transfer. The transfer fee is earned when the client concludes a real estate transaction in which the other brokerage office receives a fee.
Therefore, the written broker referral fee serves as evidence of the agreed terms for the payment of earned transfer fees that otherwise could not be fully clarified in an oral agreement or, worse, later forgotten. When an agent forwards a potential client to another agent, a referral fee agreement is used to document the recommendation. The Referral Fee Agreement is designed as a broker-to-broker recommendation form. A recommendation is between brokers and should not be confused with a Finder fee contract, as a discoverer is an un conceded person who is employed to recruit and locate clients for a broker and his agents. [See RPI form 115] The behaviour of a discoverer is limited. A finder does not have the legal authority to participate in all aspects of the dissemination of real estate information or other transactions. [Calif. Code of Conduct for Businesses and Professions 10130 and following.] The referring broker does not receive any other fees for transactions that the expelled potential client receives through the services of the other broker.