When a broker receives a referral of a named prospect and collects compensation on a transaction for services rendered to that prospect, the referring broker is entitled to collect the agreed upon fee. The referring broker is also entitled to collect a fee if a related party of the prospect buys or leases property during the term of the referral agreement. A related party includes family members, partners, or entities controlled by the prospect.
Brokers can use the Referral Agreement Between Brokers (TXR 2405) form to state the terms and fees associated with referring a prospective client to another broker. The form can be used for property sales or leases and includes options for how to calculate the fee. Referral Agreement Between Brokers is a new form that took effect in July and is available on texasrealestate.com, in zipForm, and with other approved Texas REALTORS® forms vendors. The form can be used with residential, commercial, and farm & ranch properties and is one of more than 150 forms exclusively available to members of Texas REALTORS®.