Policy and Procedure Agreement between Referral Licensees and VRR, LLC
Note: This form requires a VRR signature. Directions: TAP the LINK at end of this form “Send to VRR for 2nd signature”. Send to our email. VRR will sign and hit Submit. You will receive a copy of the signed form to your email address.
The purpose of this Policy and Procedure Agreement is to set forth guidelines and criteria to ensure smooth, effective, and successful achievement of your goals as well as ours.
Virginia Referral Realty, LLC (henceforth known in this document as VRR) is a corporation organized for the purpose of providing referrals to Builders and Brokers with full time Realtors. VRR is a limited function real estate brokerage firm. We do not list or sell any properties. We only provide referrals to Brokers.
What is a Referral?
A referral is a “lead” consisting of particular information of a prospective buyer, seller, or renter, which is sent to VRR.
VRR is composed of Referral Licensees who activate their Virginia Real Estate license with us. Referral Licensees will be on referral basis only, but their license is considered active.
Referral Licensees will not be allowed to list or sell any property or participate in the negotiations or execution of any documents, nor attend showings of property, canvass farm areas, hold open houses, attend listing appointments, or closing of escrow. Referral Licensees will not make use of office facilities, including telephones, conference rooms, MLS programs, stationary, etc. of any real estate companies. Any action to the contrary of the above will be cause for dismissal from Virginia Referral Realty, LLC.
Duties of Referral Licensees:
The Referral Licensee must make contact with the “lead” and get permission to refer him/her to another licensed Realtor. The Referral Licensee must then obtain from the customer their name, phone number(s), address, current real estate needs and any other details they can determine while reinforcing the professional manner in which their needs will be handled by the full time Realtor to which they are being referred. Then, send an email to VRR’s website www.virginiareferralrealty.com to give management the information you have obtained. These customers will then be turned over to a cooperating Realtor of your choice, or we will choose one for you, in the effective service are of the referral. VRR, LLC reserves the right to place the referral with a Realtor other than the Licensees Realtor of choice if VRR determines it would be in the best interest of or best meet the needs of the customer to select a Realtor with certain expertise.
Placement of Referrals:
Virginia Referral Realty, LLC will make every effort to place the referral with the office and/or Realtor of your choice. If you do not know a Realtor in the locale of the client’s needs, we will assist you in the selection process. If you have a preference for a particular Realtor, or if a particular Realtor personally recruited you, this should be make known to VRR management who will place your referrals with this Realtor.
Recording a Referral:
All referrals must be recorded with Virginia Referral Realty, LLC. The referral will be credited to the Referral Licensee who submits it first. If it is disclosed that the customer is already working with a Realtor you will be contacted immediately and the referral will not be accepted. Referrals made directly to a Realtor are allowable as long as you call VRR and record it through our office. In addition, a referral cannot be re-referred. In other words, you cannot make the referral to one Realtor, who then refers it to another Realtor in another part of town.
The Referral Licensee will be contacted periodically by VRR management for the progress of each referral submitted. If you hear from your referral and obtain some additional feedback that would be helpful to us, please pass it on to VRR management. VRR management is the liaison between the Referral Licensee and the Realtor handling the referral. Upon a sale or listing being obtained, the Referral Licensee will be informed immediately of details such as sales price, address, and the approximate closing dates.
Referral Licensees may not accept any referral fee payments from any Broker, Realtor, buyer, or Seller. Referral Licensees can only receive referral payments/commissions from Virginia Referral Realty, LLC.
Referral Fees received from cooperating Brokers will be based on 25% of the applicable portion of the listing or sales commission (usually 3%). This 25% of the applicable portion will be paid to Virginia Referral Group, LLC. The Referral Licensee will receive 80% of what is paid to VRR.
(Example: on a $300,000 property sale the Listing or Buying Realtor would receive 3% or $9,000. VRR would receive the 25% referral fee or $2,250 and in turn pay the Referring Licensee 80% of the 25% referral fee or $1,800).
There may be some exceptions where the customary 25% referral fee is negotiated to a higher amount. (take our lower please!!) Commission percentages to Virginia Referral Realty can sometimes vary broker to broker or be driven by a particular market area. Virginia Referral Realty, LLC will pay the Referral Licensee upon closing of a transaction and receipt the referral fee. The check will be disbursed to the Referral Licensee within three (3) business days of VRR receiving payment. Referral fees with outside Brokers will be handled in the same manner. When referring yourself as a customer, you will receive 80% of the 25% referral fee.
If you have any questions about referring yourself, call our office.
Rental Referrals received will be 10% of the first month’s rent. That amount will be split 50/50 with the Referral Licensee. Please call the office concerning long-term commercial rental or leases.
A $100 administrative and handling fee will be assessed annually.
How to Sign Up as a Referral Licensee:
Contact Virginia Referral Realty, LLC via our website www.virginiareferralrealty.com and click on the Join VRR tab. Then follow the instructions on the Interest Letter under the same tab.
Taxes and Workmen’s Compensation:
Virginia Referral Realty, LLC will not withhold any taxes nor make any payments for any workmen’s compensation, unemployment compensation nor any insurance for referral Licensees. You will be treated as an independent contractor at all times. Both parties agree to complete any papers necessary to reaffirm and maintain independent contractor status. The Referral Licensee will be responsible for filing his/her own taxes. Appropriate record of income for tax purposes will be provided.
Default or Breach:
If either party shall default or breach any part of this Agreement and result in any loss or damage to the other party, the defaulting party hereby agrees to pay to other party all loss or damage including legal fees and further agrees to hold the other party harmless from any claim, demand, cause or action, or lawsuit which may result from or be caused by such wrongdoing. The Referral Licensee further agrees to indemnify and hold Virginia Referral Realty, LLC, and it’s management harmless from any claims, demands, or judgments including legal fees and costs incurred in investigating and defending such claims, demands, or judgments arising out of this Agreement and Referral Licensee services as an independent contractor.
As an independent contractor, there are certain expenses related to doing referral business. These expenses are the sole responsibility of each Referral Licensee. These expenses include but are not limited to automobile expenses, telephone expenses, insurance expenses, or postage, etc.
Business cards are obtained at the expense of the Referral Licensee. However, business cards must be ordered through Virginia Realty Referral Group, Inc. in order to maintain continuity.
Mailings to friends, relatives, neighbor, and coworkers with the use of business cards (ordered through VRR) are permitted as long as the customer understands that VRR will be referring those customers to a full time Realtor with a cooperating Broker.
Renewing Licenses or Change of Address or Other Information:
Virginia Referral Realty, LLC will be required to maintain their Virginia Real Estate License (Sales Associate or Broker Associate) at their own expense. Continuing education requirements must be met and maintained at the expense of the Referral Licensee. Coordinating of license renewal should be made only through VRR.
Please contact VRR for any change of address or status in your license, or a change of telephone numbers. We will be contacting you on a regular basis and it is important that we have good communication at all times.
Agreement between Referral Licensees and VRR, LLC
This agreement may not be modified by either party without mutual consent and will continue from year to year until terminated. Either party may terminate this Agreement upon written notice caused by the other.
I have carefully read and understand the above Policy and Procedure Agreement and will abide by this policy.