Agent Referral Agreement Template for New Zealand

An Agent Referral Agreement is a legal contract that formalises the relationship between parties where one agent refers potential clients or business opportunities to another agent in exchange for compensation. Under New Zealand law, this agreement ensures both parties understand their rights, obligations, and the compensation structure while complying with relevant legislation including the Contract and Commercial Law Act 2017 and Fair Trading Act 1986.

When do you need this document?

You need an Agent Referral Agreement when establishing formal referral partnerships with other businesses or professionals. Real estate agencies commonly use these agreements when referring clients between offices or to specialists like mortgage brokers or property managers. Financial service providers require them when referring clients to investment advisors, insurance specialists, or accounting firms. Professional services firms use these agreements when referring clients to complementary services, such as lawyers referring clients to accountants or business consultants. Insurance companies and brokers also rely on these agreements when cross-referring clients for different types of coverage or specialised services.

Key legal considerations

Your agreement must clearly define the scope of the referral relationship, including what types of clients or opportunities qualify for referrals and any geographical or industry limitations. Compensation terms require precise definition, specifying whether payments are flat fees, percentages, or tiered commissions, along with payment timing and conditions. The agreement should address confidentiality obligations to protect sensitive client information shared during the referral process. Termination clauses must specify notice periods, outstanding payment obligations, and post-termination restrictions. Include provisions for dispute resolution, ideally specifying mediation or arbitration procedures to avoid costly litigation. The agreement should also address liability limitations and indemnification to protect both parties from potential claims arising from referral activities.

Legal requirements in New Zealand

Under the Contract and Commercial Law Act 2017, your agreement must meet basic contract formation requirements including offer, acceptance, and consideration. The Fair Trading Act 1986 prohibits misleading or deceptive conduct, so all representations about services and capabilities must be accurate and not misleading to referred clients. If your agreement involves real estate referrals, compliance with the Real Estate Agents Act 2008 is mandatory, including proper licensing and disclosure requirements. Financial service providers must comply with the Financial Service Providers Registration and Dispute Resolution Act 2008, ensuring proper registration and dispute resolution procedures. The Privacy Act 2020 governs how you collect, use, and share personal information during referrals, requiring appropriate privacy safeguards and client consent procedures. The Income Tax Act 2007 affects how referral fees are treated for tax purposes, requiring proper documentation and reporting of commission payments.