Referral Agreement (Real Estate) Template for Saudi Arabia

The Referral Agreement (Real Estate) is essential for businesses operating in the Saudi Arabian real estate market who wish to establish formal referral relationships with other industry participants. This document is particularly relevant in the context of Saudi Arabia's evolving real estate sector, where regulatory compliance and formal documentation of business relationships are increasingly important. The agreement addresses key aspects such as commission structures, service scope, compliance with Saudi real estate regulations, and Sharia law principles. It is commonly used when real estate agencies, brokers, or property management companies want to create mutually beneficial referral networks while ensuring compliance with local laws and regulations. The document includes specific provisions required by Saudi authorities, including the Ministry of Commerce's broker regulations and SAMA's real estate finance laws.

1. Parties: Identification of the referring party and the recipient party, including their legal status and real estate license details

2. Background: Context of the agreement, including the parties' business activities and intention to enter into a referral arrangement

3. Definitions: Key terms used in the agreement, including 'Referral', 'Qualified Lead', 'Commission', 'Property Types', and other relevant terms

4. Scope of Services: Detailed description of referral services, including territory coverage and property types

5. Obligations of the Referring Party: Duties in identifying and referring potential clients, including quality standards for referrals

6. Obligations of the Recipient Party: Responsibilities in handling referred clients and maintaining service standards

7. Commission Structure: Details of referral fees, calculation methods, and payment terms in compliance with Saudi regulations

8. Payment Terms: Timing and method of commission payments, including invoicing requirements and currency

9. Compliance Requirements: Obligations to comply with Saudi real estate regulations and anti-money laundering laws

10. Term and Termination: Duration of the agreement and conditions for termination

11. Confidentiality: Protection of confidential information and client data

12. Non-Solicitation: Restrictions on direct solicitation of referred clients

13. Governing Law and Jurisdiction: Specification of Saudi law as governing law and jurisdiction for disputes

14. General Provisions: Standard clauses including force majeure, notices, and amendments