Referral Fee Agreement Template for New Zealand

A Referral Fee Agreement is a legally binding contract that establishes the terms and conditions for compensation when one party refers clients or business opportunities to another. Under New Zealand law, these agreements must comply with the Fair Trading Act 1986, Contract and Commercial Law Act 2017, and industry-specific regulations to ensure enforceability and regulatory compliance.

When do you need this document?

You need a Referral Fee Agreement when establishing formal business referral relationships with financial compensation. This includes situations where real estate agents refer clients to mortgage brokers, financial advisors refer clients to insurance providers, or technology consultants refer clients to software vendors. The agreement is essential when you want to create ongoing referral partnerships with clear fee structures, particularly in regulated industries where transparency and documentation are legally required. You also need this document when expanding your business network through systematic referral arrangements or when formalising existing informal referral relationships to ensure proper legal protection and tax compliance.

Key legal considerations

Your referral agreement must clearly define the referral process, fee calculation methods, and payment terms to avoid disputes. Include specific provisions for regulatory compliance, particularly if operating in financial services where the Financial Markets Conduct Act 2013 applies. Ensure the agreement addresses intellectual property protection, confidentiality requirements, and termination procedures. Consider including clauses for dispute resolution, limitation of liability, and compliance with anti-money laundering requirements under the AML/CFT Act 2009. The agreement should specify whether referral fees are inclusive or exclusive of GST and establish clear record-keeping obligations for tax purposes. Include provisions for disclosure requirements to referred clients, as failure to disclose referral arrangements may constitute misleading conduct under the Fair Trading Act.

Legal requirements in New Zealand

Under the Fair Trading Act 1986, all referral arrangements must be transparent and not involve misleading or deceptive conduct. You must disclose referral relationships to clients when required by industry regulations or professional standards. The Contract and Commercial Law Act 2017 governs contract formation, requiring clear offer, acceptance, and consideration for enforceability. If your referral involves financial services, comply with the Financial Markets Conduct Act 2013, including licensing requirements and conduct obligations. Ensure proper documentation of referral fee payments to meet Income Tax Act requirements and maintain records for potential IRD audits. For regulated professions, check industry-specific rules about referral arrangements, as some professional bodies have additional disclosure or approval requirements. Consider privacy law compliance under the Privacy Act 2020 when sharing client information as part of referral processes.