Updated July 2026 · Reviewed by Adams, Cameron & Co.
A Florida referral fee agreement is a written agreement between the two brokerages, not the two agents personally, signed before the client is introduced, spelling out the fee percentage and when it's paid. The fee is paid broker to broker at closing, then passed to the referring agent; the client never pays anything extra.
- The agreement is between the two brokerages, not agent to agent directly, even though two agents arranged it.
- It should be signed before the client is introduced, so the fee and terms aren't a surprise later.
- The fee is typically due within about 10 days of closing, paid from the closing brokerage to the referring brokerage.
- Only a licensed real estate professional can legally receive a referral fee; an unlicensed friend or an attorney cannot.
- The client pays nothing extra; the referral fee comes out of the commission already built into the transaction.
Who actually signs a referral fee agreement?
The brokerages do, not the individual agents. Even though two agents typically arrange the referral personally, Florida real estate law requires referral fees to flow broker to broker. Your brokerage and the receiving agent’s brokerage are the parties on the agreement; you and the other agent are the people who made it happen.
When should the agreement be signed?
Before the client is introduced, ideally. Referral fees are fully negotiable, commonly landing somewhere in the 20–30% range of the receiving side’s commission, but the number and terms should be agreed to in writing, upfront, not worked out after the deal closes. That protects both sides from a disagreement once real money is on the table.
What does the agreement need to say?
At minimum: the referral fee (usually a percentage of commission), which side pays which, and the timeline for payment. A clear agreement removes ambiguity about what happens if the deal falls through, changes price, or takes longer than expected to close.
When does the fee actually get paid?
Only once the transaction closes; a referral fee is never owed on a deal that doesn’t make it to the closing table. Once it does close, payment is commonly due within about 10 business days, deducted from the closing brokerage’s gross commission and paid to the referring brokerage, which then pays its agent.
Does the client pay more because of the referral?
No. The referral fee comes out of the commission that was already part of the transaction. The client’s purchase price, closing costs, and total commission don’t change because a referral fee is being split behind the scenes.
What if you're the one receiving the referral, not sending it?
The same agreement works in reverse. If another agent sends you a client, the same written, broker-to-broker agreement applies, just with your brokerage on the paying side once the deal closes. It's worth reviewing the terms just as carefully as you would sending a referral out, since you're the one committing to a percentage of your own commission before you've even met the client.
Can the percentage change after the agreement is signed?
Generally, no, not unilaterally. Once both brokerages sign, the fee percentage is meant to be final for that transaction, exactly so neither side has to renegotiate under pressure once a closing date is set. If circumstances genuinely change, the agreement can be amended, but that requires new written consent from both brokerages, not just a phone call.
Who is legally allowed to receive a referral fee?
Only a licensed real estate professional, in Florida or in another state, whose license is active. Florida law does not allow paying a referral fee to someone unlicensed, including an attorney, a friend, or a family member who simply made an introduction. That’s exactly why keeping your license active through a referral program matters: it’s what makes you legally eligible to be paid at all.
What if the two brokerages have never worked together before?
That’s normal, and it doesn’t require an ongoing relationship. Most referral fee agreements are one-time, transaction-specific documents drawn up for that single client. Two brokerages that have never referred a client to each other before can still put a clean agreement in place in a matter of minutes; the paperwork is simple by design.
Is a verbal agreement or a handshake deal ever okay?
It’s not recommended, even between agents who know each other well. Without a written agreement, there’s nothing to point to if the two sides remember the percentage differently, if the timeline slips, or if one side disputes the deal after closing, when real money is involved. A short written agreement protects the relationship as much as it protects the money.
What happens if the deal falls apart after the agreement is signed?
Nothing is owed. A referral fee is only triggered by a closed transaction. If the buyer backs out, the listing expires, or the client changes their mind entirely, the signed agreement simply becomes void; no fee changes hands. Signing early protects the terms in case the deal does close, without creating any obligation if it doesn’t.
Referral agreement terms vary by brokerage and transaction; confirm specifics with your brokerage and, where needed, the Florida DBPR. Educational only, not legal advice.
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