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TXR 2405Referral Agreement Between Brokers

This agreement formalizes a referral between two licensed real estate brokers. The referring broker sends a prospect (buyer, seller, tenant, or landlord) to the receiving broker, who will provide brokerage services to the prospect. In return, the receiving broker agrees to pay the referring broker a referral fee, calculated as stated in Paragraph 4 for sales, primary leases, renewals and subsequent sales to a tenant, payable only from the receiving broker's fee when it is received.

Source: TXR
Form Number: 2405
Category: Other
Revised: June 24, 2024

Used For

Residential Sales, RESIDENTIAL_LEASING, Commercial Sales, Farm & Ranch, Vacant Land

Form Outline

The TXR 2405 form is organized into the following sections:

  1. 1. PARTIES
    The two broker parties to the agreement: the Receiving Broker (who will service the Prospect) and the Referring Broker (who makes the referral), each with license number, address, phone, mobile, e-mail and an optional associate. The Receiving Broker's block is theirs to complete — fill in what you know; it is not required of you.
  2. 2. PROSPECT
    The Prospect being referred to Receiving Broker: name, contact person, address, phone, mobile, e-mail, and comments or instructions for the receiving broker.
  3. 3. TERM
    "This Agreement begins on ____ and ends at 11:59 pm on ____."
  4. 4. REFERRING BROKER'S FEE
    How the referring broker's fee is calculated for each transaction type — A. Sales, B(1) Primary Lease, B(2) Renewals, B(3) Subsequent Sale to a Tenant — each as (a) a % of Receiving Broker's fee, (b) a % of the sales price / rents, or (c) a written arrangement; and C. whether the agreement covers one transaction or multiple transactions during the Term (check one box only).
  5. 5. SURVIVAL
    Pre-printed, no blanks: the obligations to pay fees earned during the Term and the fees under paragraphs 4B(2) and 4B(3) survive the termination of this Agreement.
  6. 6. RELATED PARTIES
    Pre-printed, no blanks: if a related party of Prospect (assignee, family member, officer/director/partner, or an entity that owns, controls or is owned by Prospect) buys or leases during the Term, Referring Broker is entitled to all compensation as if Prospect had acquired the property.
  7. 7. SPECIAL PROVISIONS
    Any additional terms between the brokers not addressed in the standard provisions. The paper has no ruled lines here — an open area under the heading, about four lines.
  8. 8. LICENSED BROKERS
    Pre-printed, no blanks: the parties represent they are licensed real estate brokers in Texas or their respective state.
  9. 9. ADDENDA AND OTHER DOCUMENTS
    Addenda that are part of this Agreement and other documents that may need to be provided: A. the Referring Broker's IRS Form (W-8 or W-9), if required; B. and C. write-in lines whose boxes are checked automatically when the line is filled.
  10. Signatures
    Receiving Broker on the left, Referring Broker on the right: printed name, signature with Date (or the broker's associate, with the box checked), and the associate's printed name. Signature lines and the Date beside them are placed as e-sign tabs when you send.

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