Real Estate Referral Fee Agreement Template for South Africa

The Real Estate Referral Fee Agreement is essential for property practitioners in South Africa who wish to formalize referral arrangements with other professionals in the industry. This document is specifically designed to comply with the Property Practitioners Act 22 of 2019 and related regulations, which govern the conduct of real estate professionals in South Africa. It is typically used when one property practitioner wishes to refer clients to another in exchange for a fee, ensuring transparency and compliance with regulatory requirements. The agreement covers crucial aspects such as fee calculations, payment terms, professional obligations, and regulatory compliance requirements, while protecting both parties' interests and maintaining professional standards in the South African real estate industry.

1. Parties: Identification of the referring party and receiving party, including their professional registration numbers and EAAB/PPRA details

2. Background: Context of the agreement and the parties' authority to enter into referral arrangements

3. Definitions: Key terms used in the agreement, including 'Referral', 'Successful Transaction', 'Referral Fee', and 'Referred Client'

4. Scope of Referral Arrangement: Details of the referral service, territory coverage, and types of properties/transactions included

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

6. Fee Structure: Calculation method for referral fees, percentages, and minimum/maximum amounts if applicable

7. Payment Terms: Timing of payments, payment methods, and conditions precedent to payment

8. Compliance Requirements: Obligations regarding FICA, EAAB/PPRA regulations, and other applicable laws

9. Representations and Warranties: Parties' confirmations regarding their authority, qualifications, and compliance status

10. Confidentiality: Protection of confidential information and client data

11. Term and Termination: Duration of the agreement and termination provisions

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