"As agents, we rely upon certain documents for a listing or sale to insure payment upon a successful closing. The referral document is, in my opinion, just as important," insists Grant. "There are names, consideration, and a start and expiration date that makes it a contract between two agents, in effect. That's why I believe that agents should immediately follow up with their referral form. An agent wouldn't take payment on faith just because a seller says they want to sell their house; the agent would put a document in front of the seller and ask for a signature and details as to how and when payment would be made."

Realtor Carol Wightagrees that other agents are getting sloppy. She recently was passed a referral on the Internet via email, but the busy agent was unconcerned about getting a referral agreement ready, and told her he'd respond in four or five days, but to keep him posted on the client's progress. The other agent is unaware how hamstrung Wight really is. Her referrals go through a referral coordinator to be paid. No agreement, no check, not to mention that she doesn't have sufficient information to service the client properly.

"That's the problem," says Wight. "Everyone does things differently. It causes a lack of professionalism. But if we aren't protecting ourselves, we are protecting our clients."

All contracts are based in communication and at a minimum spell out the requirements that have to be met in order for consideration to change hands. With referral fees, the minimum may differ from broker to broker, but at the very least, anyone expecting a referral fee should be willing to do the following:

Also See: