Getting your first referral partners and setting up formal referral agreement(s)

Why must I have a referral agreement in place?

When referring business, you and the referrer must comply with the National Consumer credit protection Act 2009 (NCCP Act).

What is the process?

01

I want to work with a Ray White, Living Here office or Loan Market broker.

I’m a Loan Market broker - contact your BDE and let them know you are interested in getting an agreement in place or click the ‘New Agreement’ button in Connect Leads Manager.

I work for a Ray White or Living Here office - Let someone from the Loan Market corporate team know that you are interested in getting an agreement in place (see the contact list on the Link website). They will help match an appropriate broker to your office.

02

Matching a broker to a Ray White or Living Here office.

A Loan Market BDE/state director will look at the area you are located in, and see if there is an appropriate referral partner to work with you. It’s ultimately up to the broker/agent or property manager if they would like to explore the opportunity to work with you.

03

Let’s make sure this agreement is going to work.

The BDE will organise a meeting with you and the proposed referral partner, and this is an opportunity to discuss what you can offer the partner and how you can work together.

At this stage, you should run through:

  • Where your business is currently at?
  • How you would like to grow?
  • How can our businesses work together and generate more business?
  • How many leads or referrals would you like to receive from each other a month?
  • What will the commission split be for converted deals?
  • How will you communicate on a regular basis eg. sales meetings, monthly catch ups with office staff and the broker
  • Next steps
04

We’re happy to go ahead, let’s sign the paperwork.

Both parties need to download Connect Leads Manager and input the name of the Ray White or Living Here Office, commission rate and list of brokers who wish to use this office (for business' with multiple brokers). The Agreements team will prepare the Ray White and Third Party Referral Agreements based on the information provided in Connect Leads Manager.

  • Your agreement will be sent via Docusign to all parties for signing. and there are mandatory fields (eg. signature, banking details etc) that will appear for the appropriate person to sign.
  • Until all of these fields are completed, the document cannot proceed to the next person.
  • Once fully signed, all parties will automatically receive a copy of the Referral Agreement and the Agreements team will set up the relationship in the appropriate systems.

If you do not wish for Loan Market to prepare your Third Party Referral Agreement, you will be required to attach a copy of your previously prepared agreement in order for this relationship to be set up.

We will also require the Referrer Confirmation Form to be attached if Loan Market is paying the referrer on your behalf.

Referral fees/commissions

Recommended referral fee

As many varied arrangements are in place between brokers and agents, the percentage referral fee is usually negotiated between the parties.

In the absence of any negotiated rate,a standard fee of 20% of income generated from a settled sale or loan will apply. The recommended referral fee for a signed rental management agreement is half a week’s rent.

It is legally permissible for referral fees to be sent.

Disclosure

Disclosing referral fees to your clients is required, however it is advisable to check with your state or regional corporate offices for clarification.

Maintaining the relationship with your referral partner

It’s important to put into practice what you discussed in your initial meetings around the best way to work together to make sure you both create a mutually beneficial relationship that grows both of your businesses.

Brokers NCCP requirements for referrals received are:

  • An agent must pass on an customer's details to a broker within 5 business days of discussing a broker's services.
  • The broker must contact the consumer within 10 business days.
  • When the broker contacts the consumer they must:
    • Advise they have been referred their details by the referrer
    • Confirm the consumer is happy to proceed with the discussion
  • Communicate that a payment of the referral commission is due if the loan settles (if applicable)

Check out our info hub for some ideas on how to succeed in maintaining this relationship.

What is the process?

01

I want to work with a Ray White, Living Here office or Loan Market broker.

I’m a Loan Market broker - contact your BDE and let them know you are interested in getting an agreement in place or click the ‘New Agreement’ button in Connect Leads Manager.

I work for a Ray White or Living Here office- Let someone from the Loan Market corporate team know that you are interested in getting an agreement in place (see the contact list on the Link website). They will help match an appropriate broker to your office.

02

Matching a broker to a Ray White or Living Here office.

A Loan Market BDE/state director will look at the area you are located in, and see if there is an appropriate referral partner to work with you. It’s ultimately up to the broker/agent or property manager if they would like to explore the opportunity to work with you.

Maintaining the relationship with your referral partner

It’s important to put into practice what you discussed in your initial meetings around the best way to work together to make sure you both create a mutually beneficial relationship that grows both of your businesses.

Check out our info hub for some ideas on how to succeed in maintaining this relationship.

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