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Broker Referral Agreement
"I need a Broker Referral Agreement for my real estate brokerage in Ontario to establish a referral network with mortgage brokers, including a tiered commission structure and strict privacy compliance requirements for sharing client data."
1. Parties: Identification of the referring broker and receiving broker, including full legal names, registration details, and contact information
2. Background: Context of the agreement, including the nature of the brokers' businesses and purpose of the referral arrangement
3. Definitions: Key terms used throughout the agreement, including 'Referral', 'Referred Client', 'Referral Fee', and 'Services'
4. Scope of Referral Arrangement: Details of what constitutes a valid referral and the specific services covered by the agreement
5. Referral Process: Step-by-step process for making and accepting referrals, including communication protocols and timeframes
6. Compensation: Structure and calculation of referral fees, payment terms, and conditions for fee eligibility
7. Regulatory Compliance: Obligations of both parties to comply with applicable laws and regulations, including securities laws and privacy requirements
8. Representations and Warranties: Statements affirming each party's authority, qualifications, and regulatory standing
9. Confidentiality: Provisions for protecting confidential information and client data
10. Term and Termination: Duration of the agreement and circumstances under which it can be terminated
11. Record Keeping: Requirements for maintaining records of referrals and transactions
12. General Provisions: Standard legal clauses including governing law, amendments, and notices
1. Non-Solicitation: Restrictions on soliciting referred clients or employees, used when there's significant risk of client poaching
2. White Labeling: Terms for using each other's branding and marketing materials, included when parties agree to co-branded services
3. Training and Support: Details of any training or support provided between parties, included when one party provides operational support to the other
4. Dispute Resolution: Specific procedures for resolving disputes, included when parties want to specify mediation or arbitration processes
5. Insurance Requirements: Specific insurance coverage requirements, included when dealing with high-value transactions or regulated services
6. Territory Restrictions: Geographic limitations on referral activities, included when parties want to define specific market areas
7. Performance Metrics: Specific performance targets and review processes, included when parties want to establish measurable success criteria
1. Schedule A - Fee Structure: Detailed breakdown of referral fees, including percentages, tiers, and calculation methods
2. Schedule B - Referral Process Flow: Detailed workflow diagram and procedures for handling referrals
3. Schedule C - Required Documentation: List of documents and forms required for processing referrals
4. Schedule D - Compliance Checklist: Regulatory compliance requirements and verification procedures
5. Schedule E - Approved Marketing Materials: Templates and guidelines for marketing the referral relationship
6. Appendix 1 - Contact Information: Key contacts and escalation procedures for both parties
7. Appendix 2 - Service Level Standards: Specific timeframes and quality standards for handling referrals
Authors
Financial Services
Real Estate
Insurance
Securities and Investment
Mortgage Lending
Business Services
Wealth Management
Commercial Real Estate
Investment Banking
Corporate Finance
Legal
Compliance
Business Development
Operations
Risk Management
Sales
Partnerships
Corporate Development
Regulatory Affairs
Client Services
Broker
Compliance Officer
Legal Counsel
Business Development Manager
Chief Executive Officer
Chief Operating Officer
Relationship Manager
Risk Manager
Operations Director
Managing Partner
Chief Compliance Officer
Sales Director
Partnership Manager
Business Manager
Regulatory Affairs Manager
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