The Ins and Outs of Keller Williams Referral Agreement

Are you considering entering into a referral agreement with Keller Williams? This is a decision that could have a significant impact on your real estate business. In this blog post, we will explore everything you need to know about Keller Williams referral agreements, including their benefits, requirements, and potential pitfalls.

What is a Keller Williams Referral Agreement?

A Keller Williams referral agreement is a contract between a referring agent and a receiving agent, where the referring agent passes on a client to the receiving agent in exchange for a referral fee. This type of arrangement can be beneficial for both parties, as it allows the referring agent to earn passive income without having to actively work with the client, and it allows the receiving agent to expand their client base without having to spend time and resources on lead generation.

Benefits of Keller Williams Referral Agreements

There are several benefits to entering into a referral agreement with Keller Williams. These include:

Benefit Description
Passive Income Referring agents can earn a referral fee without having to actively work with the client.
Client Expansion Receiving agents can expand their client base without having to spend time on lead generation.
Networking Opportunities Referral agreements can lead to valuable networking opportunities with other real estate professionals.

Requirements and Pitfalls

While Keller Williams referral agreements can be beneficial, it is important to be aware of the requirements and potential pitfalls. For example, there may be specific requirements for qualifying as a referring agent, and there may be restrictions on the types of clients that can be referred. Additionally, it is important to carefully review the terms of the agreement to ensure that both parties are clear on the referral fee and any other relevant details.

Case Studies and Statistics

According to a study by the National Association of Realtors, 42% of real estate agents earn income from referral fees. Additionally, a case study of Keller Williams agents found that those who actively pursued referral agreements saw an average increase of 20% in their annual income.

Keller Williams referral agreements can be a valuable source of passive income and client expansion for real estate agents. By carefully considering the benefits, requirements, and potential pitfalls, agents can make an informed decision about whether to enter into a referral agreement with Keller Williams.

Keller Williams Referral Agreement

This referral agreement (“Agreement”) is made and entered into as of the effective date by and between the parties specified below. This Agreement sets forth the terms and conditions under which referrals for real estate services shall be made between the parties.

Party A: Referring Associate Party B: Receiving Associate
Name: ________________________ Name: ________________________
Address: ________________________ Address: ________________________
Email: ________________________ Email: ________________________
Phone: ________________________ Phone: ________________________

WHEREAS, Party A desires to refer clients to Party B for real estate services, and Party B is willing to compensate Party A for such referrals;

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties agree as follows:

  1. Referrals: Party A shall refer potential clients Party B real estate services. Such referrals shall be made writing shall include the contact information specific needs the potential client.
  2. Compensation: Party B shall compensate Party A each referral results closed real estate transaction. The compensation amount payment terms shall as agreed upon the parties writing each specific referral.
  3. Representations Warranties: Each party represents warrants they have the authority enter this Agreement the performance their obligations hereunder does not violate any applicable law regulation.
  4. Termination: Either party may terminate this Agreement any time upon written notice the other party.
  5. Confidentiality: The parties agree maintain the confidentiality all client information use such information solely the purpose providing real estate services.
  6. Applicable Law: This Agreement shall governed construed accordance the laws the state _________.
  7. Entire Agreement: This Agreement constitutes the entire understanding agreement the parties respect the subject matter hereof supersedes all prior contemporaneous agreements understandings, whether written oral.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the effective date first above written.

Referring Associate (Party A) Receiving Associate (Party B)
Signature: ________________________ Signature: ________________________
Date: ________________________ Date: ________________________

Top 10 Legal Questions Regarding Keller Williams Referral Agreements

Question Answer
1. What is a Keller Williams Referral Agreement? A Keller Williams referral agreement is a legal arrangement where a Keller Williams agent refers a potential client to another Keller Williams agent in exchange for a referral fee if the client completes a transaction with the referred agent.
2. Are Keller Williams referral agreements legally binding? Yes, Keller Williams referral agreements are legally binding contracts, as long as they meet the requirements of a valid contract, including offer, acceptance, consideration, and mutual assent.
3. What should be included in a Keller Williams referral agreement? A Keller Williams referral agreement should include the names of the referring and referred agents, the referral fee amount or percentage, the terms and conditions of the referral, and any additional provisions agreed upon by the parties.
4. Can a Keller Williams referral agreement be terminated? Yes, a Keller Williams referral agreement can be terminated by mutual agreement of the parties, expiration of the agreement term, or by the occurrence of a specified event, such as the completion of the referred transaction.
5. What are the legal implications of breaching a Keller Williams referral agreement? Breaching a Keller Williams referral agreement may result in legal consequences, such as a lawsuit for damages or specific performance, depending on the terms of the agreement and the applicable state laws.
6. Are there any restrictions on Keller Williams referral agreements? Yes, Keller Williams referral agreements may be subject to state real estate commission regulations, which may impose restrictions on referral fees, disclosures, and other requirements that must be complied with.
7. Can a Keller Williams agent enter into multiple referral agreements? Yes, a Keller Williams agent can enter into multiple referral agreements with different agents, as long as they do not violate any exclusivity provisions or create conflicts of interest.
8. Do Keller Williams referral agreements require written documentation? Yes, Keller Williams referral agreements should be documented in writing to ensure clarity and enforceability, and to protect the interests of the referring and referred agents.
9. How are disputes regarding Keller Williams referral agreements resolved? Disputes regarding Keller Williams referral agreements may be resolved through negotiation, mediation, arbitration, or litigation, depending on the terms of the agreement and the preferences of the parties.
10. Are there any specific ethical considerations for Keller Williams referral agreements? Yes, Keller Williams agents should adhere to the ethical standards of the National Association of Realtors and the Keller Williams Realty International Code of Ethics when entering into referral agreements, to maintain professionalism and integrity in their business practices.