Referral Fee Agreement Template for Singapore

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Key Requirements PROMPT example:

Referral Fee Agreement

"I need a Referral Fee Agreement for my Singapore-based real estate agency to pay 2% commission to independent property agents who refer successful buyers, starting from January 2025, with monthly payment terms and a minimum threshold of SGD 500,000 per transaction."

Document background
The Referral Fee Agreement is a critical document for businesses operating in Singapore that wish to formalize their referral relationships and ensure compliance with local regulations. This agreement type is commonly used when businesses seek to incentivize and reward third parties for generating leads or business opportunities. The document addresses key aspects such as fee calculations, payment terms, performance metrics, and compliance with Singapore's anti-corruption laws and industry-specific regulations. It provides legal protection for both parties while ensuring transparency in referral arrangements.
Suggested Sections

1. Parties: Identification and details of the referrer and referee

2. Background: Context of the referral arrangement and business relationship

3. Definitions: Key terms used throughout the agreement including 'Referral', 'Referral Fee', 'Successful Referral'

4. Referral Services: Scope and nature of referral services to be provided, including rights and obligations of both parties

5. Fee Structure: Calculation and payment terms for referral fees, including payment timeline and method

6. Term and Termination: Duration of agreement and conditions for termination or renewal

7. Confidentiality: Protection of confidential information exchanged during the referral process

8. Governing Law: Specification of Singapore law as governing law and jurisdiction

Optional Sections

1. Non-Competition: Restrictions on competitive activities during and after the agreement term

2. Data Protection: Compliance with PDPA and handling of personal data in referrals

3. Performance Metrics: Specific targets, KPIs, and quality standards for referrals

4. Territory Restrictions: Geographical limitations and exclusive/non-exclusive territory arrangements

Suggested Schedules

1. Schedule 1 - Fee Schedule: Detailed breakdown of referral fee calculations, tiers, and payment terms

2. Schedule 2 - Referral Process: Step-by-step procedure for making and tracking referrals

3. Schedule 3 - Reporting Template: Standard format for reporting referrals and calculating fees

4. Schedule 4 - Compliance Requirements: Industry-specific compliance requirements and procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Industries

Contract Act 1872: Primary legislation governing contract formation, validity, and enforcement in Singapore

Payment Services Act 2019: Regulates payment systems and payment service providers in Singapore

Currency Act: Governs the use of currency and payment terms in Singapore

Prevention of Corruption Act: Key anti-corruption legislation to ensure referral fees don't constitute illegal kickbacks or bribes

Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act: Provides for confiscation of benefits derived from corruption and other serious crimes

Estate Agents Act: Regulates real estate agency industry including referral arrangements in property transactions

Securities and Futures Act: Regulates financial services sector including referral arrangements in financial services

Private Hospitals and Medical Clinics Act: Governs healthcare services including referral arrangements in medical sector

Legal Profession Act: Regulates legal services including referral arrangements between lawyers

Personal Data Protection Act 2012: Governs collection, use, and disclosure of personal data in referral arrangements

Income Tax Act: Governs taxation of referral fees and commission income

Goods and Services Tax Act: Regulates GST implications on referral fee payments

Competition Act: Ensures referral arrangements don't constitute anti-competitive practices

Consumer Protection (Fair Trading) Act: Protects consumer interests in referral arrangements involving consumer services

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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