Broker Referral Agreement Template for India

The Broker Referral Agreement serves as a legally binding document under Indian law that facilitates business relationships between parties involved in referral arrangements. This document is essential when one party wishes to refer clients to a broker or brokerage firm in exchange for compensation. It is commonly used in various sectors including real estate, financial services, and insurance, where referral networks are crucial for business development. The agreement must comply with Indian regulatory requirements, including relevant provisions of the Indian Contract Act, 1872, and sector-specific regulations such as SEBI guidelines or RERA requirements. It typically includes detailed sections on commission structures, referral processes, compliance obligations, and risk allocation between parties. This agreement is particularly important in the Indian context where business relationships often rely on structured referral networks and where regulatory compliance is increasingly scrutinized.

1. Parties: Identification of the referring party and the broker, including full legal names, addresses, and registration details

2. Background: Context of the agreement, brief description of the parties' businesses, and purpose of the referral arrangement

3. Definitions: Key terms used throughout the agreement, including 'Referral', 'Referred Client', 'Services', and 'Commission'

4. Scope of Referral Arrangement: Detailed description of the referral services, territories covered, and any exclusivity provisions

5. Referral Process: Step-by-step process for making and accepting referrals, including communication methods and timeframes

6. Commission Structure: Details of commission rates, calculation methods, payment terms, and conditions for commission eligibility

7. Obligations of Parties: Specific duties and responsibilities of both the referring party and the broker

8. Compliance Requirements: Regulatory compliance obligations, including licensing, registration, and reporting requirements

9. Confidentiality: Protection of confidential information and client data

10. Term and Termination: Duration of the agreement and circumstances for termination

11. Representations and Warranties: Statements of fact and assurances from both parties

12. Indemnification: Protection against losses and liability allocation between parties

13. General Provisions: Standard clauses including governing law, notices, amendments, and dispute resolution