Real Estate Referral Agreement: Template, Fee Ranges, and Broker Rules (2026)

A real estate referral agreement is one of the shortest documents your brokerage signs, and one of the most likely to cause a fight. A buyer is handed to another agent, the deal closes four months later, and nobody agrees whether the fee was 25 percent of the gross or of the agent's side, whether it expired, or who cuts the check.

Here is the thesis of this guide. A referral is a promise to pay money in the future, on a deal that has not happened yet, between two companies that may never work together again. That promise only holds up if it is written down before the introduction, paid broker to broker, and tracked until it is either paid or expired.

This guide is for broker-owners, managing brokers, team leaders, and agents who send or receive referrals: who can be paid, typical fees, the clauses every agreement needs, a fill-in template, worked fee math, and the mistakes that start disputes.

One note before we start. This is an operating guide, not legal advice. License law, RESPA, and association rules vary by state and by transaction. Check with your state real estate commission and have a licensed attorney review your final form.

If you are building the money side of your brokerage at the same time, this pairs well with real estate agent commission plans, the real estate independent contractor agreement, how to stop payout fights before close, and how to run a referral real estate brokerage.

In this guide

1. What a real estate referral agreement is (and is not)
2. The rules that decide who can be paid
3. Referral fee ranges: what is typical
4. The 12 clauses every real estate referral agreement needs
5. Real estate referral agreement template (fill-in)
6. Worked fee math: gross vs. net
7. Seven referral mistakes that start disputes
8. A broker's referral policy checklist
9. FAQ

What a real estate referral agreement is (and is not)

A real estate referral agreement is a written contract between two brokerages in which the receiving brokerage agrees to pay the referring brokerage a fee if a referred client closes a transaction within a set period. The agents usually negotiate it and sign it, but the parties that matter are the brokers, because in nearly every state commissions belong to the broker and flow through the broker.

It is not a buyer or listing agreement (the client contracts with the receiving brokerage), not a co-broke offer (two brokerages on opposite sides of one deal), and not a lead or marketing purchase. In-house referrals between your own agents are usually governed by your commission plan rather than a broker-to-broker form, so write that rule down too.

The rules that decide who can be paid

Three layers of rules matter: federal RESPA, state license law, and, if you are a Realtor, the NAR Code of Ethics.

RESPA allows referral fees between real estate brokers

RESPA Section 8 bans kickbacks and referral fees for settlement services tied to federally related mortgage loans, and real estate brokerage is a settlement service. But there is a specific exemption. Regulation X, at 12 CFR 1024.14(g)(1)(v), permits "a payment pursuant to cooperative brokerage and referral arrangements or agreements between real estate agents and real estate brokers." It applies only when all parties are acting in a real estate brokerage capacity, and not to fee arrangements between real estate brokers and mortgage brokers.

NAR's January 2026 guidance puts it plainly: RESPA does not prohibit referral fees between real estate licensees. Lenders, title, and escrow are different. Do not give or accept a fee, gift, or "thing of value" for referrals with them. The CFPB's RESPA FAQ notes that a thing of value is defined broadly and that an agreement to refer can be established by a pattern of conduct, not just a written contract.

State license law decides who can receive a fee

States limit who can be paid and how the money flows. Three large markets as examples:

State	Rule	Source
Florida	No fees or commission shares to anyone not properly licensed in Florida for referrals; a Florida broker may pay a broker licensed in another state who does not violate Florida law.	Florida Statutes 475.25(1)(h)
Texas	Pay only license holders or out-of-state brokers who do not negotiate in Texas; sales agents are paid by, and pay through, their sponsoring broker.	Texas Occupations Code 1101.651
California	No pay to unlicensed persons for licensed acts; a broker may pay a broker of another state; salespersons share compensation only through their responsible broker.	California Business and Professions Code 10137

Two practical rules follow in most states. The fee goes brokerage to brokerage, never to or from an agent personally. And verify the license before you pay: Florida Realtors' guidance on Section 475.25(1)(h) advises Florida brokers to verify that an out-of-state agent is complying with the law in their own jurisdiction before paying. Out-of-state brokers should refer and stay home; showing property or negotiating in your state puts the fee at risk for both sides.

Unlicensed people and "finder's fees"

Rules for paying unlicensed people vary, so put them in your policy manual. TREC's FAQ says a Texas license holder may not pay cash to an unlicensed person for referring a buyer or tenant; merchandise gifts with a retail value of $50 or less are not considered valuable consideration. Florida's statute prohibits paying unlicensed persons for referrals, with a narrow apartment-tenant finder's fee exception capped at $50 per transaction. California's DRE advertising guidelines warn that repeated referrals from an unlicensed person can suggest an unlicensed side business.

The safe default for a brokerage: pay referral fees only to licensed brokerages, and route any thank-you to past clients through a policy your attorney has approved.

NAR Code of Ethics and client disclosure

Under Article 6 of the NAR Code of Ethics, Realtors who recommend real estate products or services must disclose any financial benefits or fees they may receive, "other than real estate referral fees." That carve-out is not a reason to keep fees quiet. Writing after the 2024 NAR settlement, Broker Risk Management, a California broker risk firm, recommended that no referral fee be paid unless the buyer or seller consents in writing. Ask your attorney what your state requires, and build the disclosure into your process.

Referral fee ranges: what is typical

A 2020 report by the Consumer Federation of America on real estate referral fees found "general agreement" that the typical fee is one-quarter of the commission collected by the agent receiving the referral, that fees range from 10 to 50 percent, and that a large majority fall between 20 and 35 percent. The same report notes that relocation companies and referral networks often charge more, sometimes up to 50 percent.

How brokers commonly negotiate within that range (conventions, not rules):

Referral type	Typical starting point	Why
Agent-to-agent, out of area	Around 25%	The conventional default
Warm, pre-approved, ready-to-move client	Upper end of 20–35%	The referring agent did real work
Cold name and phone number	Low end of the range	Low likelihood of closing
Relocation company or referral network	Often higher than 25%	Networks control steady volume
In-house agent-to-agent	Set by your commission plan	It is a policy, not a negotiation

No statute sets the number, so the agreement must say exactly what was agreed.

The 12 clauses every real estate referral agreement needs

1. Parties and licenses

Both brokerages, designated brokers, and agents, with license numbers and states. This proves the fee moves between licensees.

2. The referred client

Name, contact details, and introduction date. Name every household member so a spouse closing alone is not a loophole.

3. Transaction type and scope

Purchase, sale, lease, or several, and whether it covers one transaction or every transaction in the period.

4. Geography or property

Define the market area or property, so a client referred for one city who buys in the next county is not an argument.

5. The fee and the basis

This is the clause that causes most disputes. Write the percentage and exactly what it applies to. The common choice is a percentage of the gross commission received by the receiving brokerage on the referred client's side, before internal splits. Say whether it is calculated before or after any franchise fee, transaction fee, or concessions, and whether a flat-dollar alternative applies.

6. Term and expiration

A clear period, often six to twelve months from introduction, and whether the deal must close or only go under contract within it.

7. When and how the fee is paid

Tie payment to closing and receipt of funds: disbursed at settlement, or paid by the receiving brokerage within a set number of days.

8. Broker-to-broker payment

Only the receiving brokerage pays, only the referring brokerage receives, and each pays its own agents under its own plan.

9. What happens if the deal changes

Cover the edge cases: the client terminates and comes back, the receiving agent changes brokerages, the receiving agent reduces their commission, or a second agent at the receiving brokerage finishes the deal. Most disputes live here.

10. Client disclosure and consent

The client's written acknowledgment of the fee, or a reference to your state's disclosure form.

11. Compliance representations

Each party is licensed, no part of the fee goes to an unlicensed person, and the referring party will not practice where it is unlicensed.

12. Disputes and signatures

How disagreements are resolved (for Realtors, often association mediation or arbitration), governing law, and dated signatures from both agents and both brokers.

Real estate referral agreement template (fill-in)

A starting draft for attorney review, not a finished legal form. Many state Realtor associations publish their own (the California Association of Realtors lists a Referral Fee Agreement, form RFA, among its standard forms); compare yours against this structure.

REAL ESTATE REFERRAL AGREEMENT

1. Parties. This agreement is between [Referring Brokerage], license no. [], state [], designated broker [Name] ("Referring Broker"), and [Receiving Brokerage], license no. [], state [], designated broker [Name] ("Receiving Broker"). Referring agent: [Name], license no. []. Receiving agent: [Name], license no. [].

2. Referred client. [Full name(s)], [phone], [email]. Date of introduction: [___].

3. Scope. This referral covers the client's [purchase / sale / lease / purchase and sale] of real property located in [market area or address].

4. Referral fee. Receiving Broker will pay Referring Broker []% of [the gross commission received by Receiving Broker / the receiving agent's share after internal split] on the client's side of each covered transaction, calculated [before / after] [franchise fees / transaction fees]. Alternative flat fee: $[_].

5. Term. This agreement covers transactions for which a contract is signed within [__] months of the date of introduction and that close thereafter.

6. Payment. The fee is due within [__] business days after Receiving Broker receives its commission, or will be disbursed directly at closing by the settlement agent if permitted. Receiving Broker will provide a copy of the final settlement statement on request.

7. Broker-to-broker only. All fees are paid by Receiving Broker to Referring Broker. No fee will be paid to or by any agent directly.

8. Changes. If the receiving agent leaves Receiving Broker, Receiving Broker [remains / does not remain] responsible for the fee on covered transactions it closes. If the commission is reduced, the fee is calculated on the commission actually received.

9. Disclosure. The client has been informed of this referral fee and has acknowledged it in writing [on the attached disclosure].

10. Compliance. Each party represents that it is properly licensed, that no part of the fee will be paid to an unlicensed person, and that Referring Broker will not perform real estate brokerage activity in a jurisdiction where it is not licensed.

11. Disputes. Disputes will be resolved by [association mediation / arbitration / courts of ___], under the laws of [state].

12. Signatures. Referring agent, Referring Broker, receiving agent, Receiving Broker, each with date.

Worked fee math: gross vs. net

The basis clause changes the check. Here is an illustrative example (the numbers are hypothetical, chosen to show the math).

A referred buyer purchases a $500,000 home. The receiving brokerage earns 2.5 percent on the buyer side, which is $12,500. The referral fee is 25 percent. The receiving agent is on a 70/30 split with their brokerage.

Basis written in the agreement	Fee calculation	Referral fee
25% of receiving brokerage's gross commission	25% × $12,500	$3,125
25% of receiving agent's share after a 70/30 split	25% × $8,750	$2,187.50
Flat fee	Agreed amount	Whatever was written

That $937.50 gap is exactly what starts an argument months later. The referring brokerage then pays its own agent under its own commission plan.

Year-end reporting

Per IRS Instructions for Forms 1099-MISC and 1099-NEC, fees paid by one professional to another, "such as fee-splitting or referral fees," are examples of nonemployee compensation reported in box 1a of Form 1099-NEC. The threshold is $2,000 for payments made in 2026 (inflation-adjusted from 2027), and payments to a corporation, including an LLC treated as a C or S corporation, generally do not require one. Collect a W-9 before paying and confirm with your CPA.

Seven referral mistakes that start disputes

1. Papering it after the introduction. Sign before the client meets the receiving agent.
2. A vague basis. "25 percent" of what? Gross or net, before or after franchise fees?
3. No expiration date. Open-ended referrals become claims years later.
4. Agents paying each other directly. It bypasses the brokers and can violate license law.
5. Paying an unlicensed person. Past clients and friends usually cannot receive a fee.
6. Mixing in lender or title relationships. Broker-to-broker fees are RESPA-exempt; settlement-provider kickbacks are not.
7. Nobody tracking it. The deal closes and the fee is never paid, or paid twice, which damages the relationships that send you business.

A broker's referral policy checklist

Put this in your policy manual and reference it from your independent contractor agreement.

• Every outbound and inbound referral uses the brokerage's approved form.
• Agreements are signed by both agents and both brokers before the introduction.
• The fee basis (gross or net, before or after which fees) is written into every agreement.
• Every agreement has an expiration date.
• Referral fees are paid only broker to broker, never agent to agent.
• The other broker's license is verified and a copy is saved in the file.
• A Form W-9 is collected before any fee is paid.
• Client disclosure or consent is collected where your state or your attorney requires it.
• In-house referral splits are defined in the commission plan.
• No payments to or from lenders, title, or escrow for referrals.
• Every open referral is logged with client, date, fee, basis, and expiration.
• Fees are reconciled at closing and confirmed paid within the agreed number of days.

Where Brokurz fits

Brokurz is the AI operating system for real estate: transactions, compliance, commissions, CRM, back office, website, and recruiting in one place. That matters for referrals because the referral is a CRM event, a transaction event, a commission event, and a compliance document all at once. When those live in one system, the agreement is tied to the client and the transaction, the fee and its basis are already on the commission breakdown at closing, and nothing depends on someone remembering an email from last spring.

Brokurz 2.0 is now live. Read what's new in Brokurz 2.0.

Lock in today's rate before December 1. New customers who sign up by November 30 keep today's price; prices go up December 1, and existing customers keep their rate. Sign up for Brokurz or book a demo to see how referrals, splits, and payouts run on one system.

FAQ

What is a real estate referral agreement?

A written contract in which the receiving brokerage agrees to pay the referring brokerage a fee if a referred client closes within a set period.

What is the standard real estate referral fee?

There is no legal standard, but 25 percent of the receiving side's commission is the most common figure. A Consumer Federation of America report found most referral fees fall between 20 and 35 percent, with a full range of 10 to 50 percent.

Are real estate referral fees legal under RESPA?

Yes, between real estate brokers acting in a brokerage capacity, under 12 CFR 1024.14(g)(1)(v). The exemption does not cover payments involving mortgage brokers or other settlement service providers.

Can I pay a referral fee to an unlicensed person?

Usually not. Florida, Texas, and California all restrict it, with narrow exceptions. Check state law and your attorney first.

Can a referral fee be paid to an agent directly?

No, in most states. Fees move brokerage to brokerage, and each brokerage pays its own agent.

Can I pay a referral fee to an agent in another state?

Generally yes, to a broker licensed in their state who does not practice in yours. Florida, Texas, and California statutes all permit this.

Do referral fees get reported on a 1099?

Per IRS instructions, referral fees are reportable on Form 1099-NEC at $2,000 or more for 2026, but payments to corporations are generally exempt. Collect a W-9 and ask your CPA.

How long should a referral agreement last?

Commonly six to twelve months from the introduction. Write down whether the deal must close or only go under contract within it.

Sources

• Consumer Financial Protection Bureau, Regulation X, 12 CFR 1024.14 (consumerfinance.gov and eCFR) and CFPB RESPA Frequently Asked Questions
• National Association of Realtors, "Tips to Give and Get Referrals in a RESPA-Compliant Way" (January 15, 2026) and 2026 Code of Ethics and Standards of Practice, Article 6
• Florida Statutes Section 475.25(1)(h) and Section 475.011 (leg.state.fl.us, flsenate.gov); Florida Realtors, Florida real estate brokers and brokerages laws
• Texas Occupations Code Section 1101.651; Texas Real Estate Commission FAQs on paying unlicensed persons and referral offices (trec.texas.gov)
• California Business and Professions Code Section 10137 (leginfo.legislature.ca.gov); California DRE Real Estate Advertising Guidelines; C.A.R. List of Standard Forms
• Consumer Federation of America, "Real Estate Referral Fees: Do They Harm Consumers?" (2020)
• IRS Instructions for Forms 1099-MISC and 1099-NEC (Rev. December 2026)
• Broker Risk Management, "Referral Fees After the NAR Settlement" (August 2024)