1. Referral Fee Structure
• Flat fee: In some cases, the policy might specify a fixed amount rather than a percentage of commission.
• Referral payment timelines: Typically, payment is made after the deal is successfully closed, and the payment is collected from the buyer or seller.
2. Eligibility for Referral Program
• Anyone above 18+ years can participate in the referral program, provides they follow the program’s guidelines.
3. Transparency and Documentation
• Clear documentation: A written referral agreement is often required to ensure that both parties (referrer and referred) agree to the terms of the referral.
• No double referrals: It is essential that there are no overlapping or multiple agents claiming the same referral.
4. Compliance with RERA and Legal Guidelines
• Adherence to RERA: Referral arrangements must comply with RERA guidelines, which emphasize transparency, ethical practices, and fair business conduct.
• Conflict of interest: Real estate agents should avoid any conflicts of interest, ensuring that the referral is made based on the best interests of the clients and not just for financial incentives.
5. Payment Terms
• Timing: Payment to the referrer is generally processed only after the transaction is successfully completed and the commission is received from the client.
• Refundable or cancellable deals: If a deal is canceled or refunded, the referral fee may be adjusted accordingly.
6. Referral Tracking and Reporting
• System for tracking: Companies often use a CRM or referral-tracking system to ensure that referrals are accurately logged, tracked, and compensated.
• Periodic reports: Companies may provide agents with regular reports showing the status of referrals and commissions earned.
7. Confidentiality and Non-Compete Clauses
• Confidentiality: Referral partners may be required to maintain confidentiality of any business or client-related information exchanged during the referral process.
• Non-compete clauses: Some companies include provisions prohibiting the referral agent from engaging in direct business with the client without the company's involvement.
8. Referral for Specific Transactions
• Specific deals: Referral programs may be limited to specific types of transactions, such as residential sales, commercial sales, or rentals, and may include a clause on territory restrictions.
• Specific client criteria: Some companies may only offer referral incentives if the referred client meets specific criteria, such as a minimum transaction value or the ability to close a deal within a set time frame.
9. Ethical Practices
• Fair conduct: The policy will likely emphasize honesty, integrity, and fair competition, ensuring agents do not engage in unethical or misleading practices when making referrals.
• No pressure tactics: Referral agents should avoid coercing potential clients to close deals inappropriately just to earn a referral fee.
10. Termination of Referral Agreements
• Termination conditions: The policy might include conditions under which referral agreements can be terminated, such as failure to comply with terms or unethical conduct.
• Incentive adjustments upon termination: In case a deal is canceled or a referral relationship is terminated, the company may have provisions to adjust or withhold referral payments.
11. Dispute Resolution
• Dispute mechanisms: A clear process for handling disputes between the referring agent and the referred agent, or between the client and the agent, may be outlined. This could include mediation or arbitration to resolve conflicts.