Referral Fee Policy for Broker-to-Broker Referrals

When a Kale Broker refers a client or transaction to another broker, the referring broker is eligible to receive a referral fee once the deal closes. This policy outlines how that referral fee is handled and what portion is due to the brokerage.

How It Works

When you refer a deal to another broker — whether on the buy side or listing side — you can request a percentage of the commission earned by that broker once the transaction closes. A common example is a 20% referral fee.

Brokerage Fee

Kale Realty charges a $400 brokerage fee on referral commissions.However, if 10% of the referral fee is less than $400, the brokerage fee will simply be that lower 10% amount.

In other words:

• If 10% of your referral commission is greater than $400, the brokerage fee will be $400.

• If 10% of your referral commission is less than $400, the brokerage fee will be that 10% amount.

  
  

Examples

Example 1:You refer a deal and receive a $3,500 referral commission when it closes.

• 10% of $3,500 = $350

• Since $350 is less than $400, the brokerage fee = $350

• Your net amount: $3,150

Example 2:You refer a deal and receive a $5,000 referral commission when it closes.

• 10% of $5,000 = $500

• Since $500 is greater than $400, the brokerage fee = $400

• Your net amount: $4,600

Key Takeaways

• All referral commissions are subject to a brokerage fee.

• The fee will be $400 unless 10% of the referral amount is less than that, in which case 10% applies.

• The referral fee is due to the referring broker after the closing and upon receipt of funds from the other broker.