How it works
When your client is moving to a market you don't serve, you introduce them to a trusted agent there. When the deal closes, the receiving agent's brokerage pays your brokerage a referral fee, often 25 to 35 percent of the receiving side's commission.
Put it in writing
Use a signed referral agreement before the introduction: names, the fee, when it is paid and how long it lasts. Fees are paid broker to broker, never directly to an individual, and only to licensees.
- ✓Client name and contact
- ✓Referral fee percentage
- ✓Expiration period
- ✓Both brokerages' signatures
Build the habit
Know at least one trusted agent in every market your clients ask about. That is exactly the network Real Estate CNX is building, starting in Arizona and Washington.
This guide is general information, not legal, tax or financial advice. Rules vary by state.