Real Estate Broker Referral Agreement Template for South Africa

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Key Requirements PROMPT example:

Real Estate Broker Referral Agreement

"I need a Real Estate Broker Referral Agreement for my Cape Town agency to receive referrals from international brokers, with a focus on luxury residential properties and a tiered commission structure starting from March 2025."

Document background
The Real Estate Broker Referral Agreement is essential for property practitioners in South Africa who wish to establish formal referral relationships with other brokers. This document is particularly relevant when brokers want to expand their business reach, serve clients in different geographical areas, or tap into specialized market segments. The agreement must comply with the Property Practitioners Act 22 of 2019, which replaced the Estate Agency Affairs Act, and includes provisions for referral fee structures, professional obligations, and client protection. It's commonly used when a broker receives client inquiries for properties outside their usual territory or expertise, or when establishing strategic partnerships with other real estate professionals. The document includes specific provisions for South African regulatory compliance, including PPRA requirements, FICA compliance, and POPIA data protection measures.
Suggested Sections

1. Parties: Identification of the referring broker and receiving broker, including their full legal names, registration numbers, PPRA registration details, and physical addresses

2. Background: Context of the referral relationship, including the purpose of the agreement and the general nature of the referral arrangement

3. Definitions: Key terms used in the agreement, including 'Referral', 'Referral Fee', 'Successful Transaction', 'Property', and other relevant terms

4. Scope of Agreement: Details of the referral arrangement, including territories covered and types of properties/transactions included

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

6. Compensation: Structure and terms of referral fees, including calculation method, payment timing, and conditions for fee eligibility

7. Representations and Warranties: Declarations by both parties regarding their legal capacity, professional status, and compliance with relevant laws

8. Confidentiality: Obligations regarding confidential information and client data protection in accordance with POPIA

9. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

10. General Provisions: Standard clauses including notices, entire agreement, governing law, and dispute resolution

Optional Sections

1. Exclusivity: Terms regarding exclusive referral rights in specific territories or for specific client types - used when parties agree to exclusive arrangements

2. International Referrals: Additional provisions for cross-border referrals, including currency handling and compliance with international laws - used for agreements with international scope

3. Marketing and Co-Branding: Terms governing how parties may use each other's brands and market the referral relationship - used when parties want to actively promote their collaboration

4. Professional Insurance: Requirements for maintaining professional indemnity insurance - used in high-value or high-risk referral arrangements

5. Data Protection Protocol: Detailed procedures for handling personal information - used when extensive client data sharing is anticipated

6. Sub-Referral Rights: Terms governing the right to further refer clients to other brokers - used when allowing for multi-tier referral arrangements

Suggested Schedules

1. Schedule A - Fee Structure: Detailed breakdown of referral fee percentages, calculation methods, and examples

2. Schedule B - Referral Territory: Detailed description or map of the geographical areas covered by the agreement

3. Schedule C - Required Documentation: List of documents and forms required for processing referrals

4. Schedule D - Contact Persons: List of key contact persons and their details for both parties

5. Appendix 1 - Referral Form Template: Standard form to be used when making referrals

6. Appendix 2 - Compliance Checklist: Checklist ensuring compliance with Property Practitioners Act and other relevant legislation

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

Relevant Industries

Residential Real Estate

Commercial Real Estate

Industrial Real Estate

Retail Real Estate

Agricultural Real Estate

Luxury Real Estate

Property Development

Real Estate Investment

Property Management

Relevant Teams

Legal

Compliance

Real Estate Sales

Business Development

Operations

Client Relations

Partnership Management

Risk Management

Finance

Administrative Support

Relevant Roles

Real Estate Broker

Property Practitioner

Real Estate Agency Principal

Property Sales Manager

Real Estate Agent

Compliance Officer

Legal Counsel

Business Development Manager

Real Estate Operations Manager

Property Portfolio Manager

Client Relations Manager

Real Estate Partnership Manager

Industries
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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