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Clarifying Different Refferal Terms

  • Latest News
  • June 1, 2020
Clarifying Different Refferal Terms

CLARIFYING DIFFERENT REFERRAL TERMS V1
(Includes Joint mandates, Closed Estates and Cross-border)

Please consult the latest office rules for the agreed splits on commissions.

A

INTERNAL OFFICE REFERRALS (agent to agent within the same office) – also referred to as Lead referrals.
When you refer either a buyer or seller lead to an agent in your own office, an email is sent to the agent confirming the details of the individual and it is best to copy the Sales Manager for reference purposes. The agent receiving the referral must in turn respond to the email as confirmation of acceptance of the referral and the terms.
The email should contain at least the following details:
1. Name and surname of the person being referred
2. The address if this is a seller
3. Contact numbers.
4. Expected or agreed commission split with the agent. Please bear in mind that the commission will be split after the agency’s commission percentage is deducted.

B

EXTERNAL REFERRALS WITH ANOTHER BRAND
When an agent/cy from another real estate brand agrees to share their listing with an agent from a Property.CoZa office, this must be agreed to in writing.
1. All negotiations must take place in writing as confirmation of the agreed splits and terms.
2. The terms must be copied to the Sales Manager and Office Administrator.
3. The letters Mandate letter – confirmation of commission split with external agency and Mandate letter – sharing commission with external agency under Referrals in Standard Franchise Corporate Folder must be completed for these referrals.

C

REFERRALS BETWEEN PROPERTY.COZA OFFICES (NON-CROSS- BORDER)
An agent may not first list a property before handing it over. The agent who will be dealing with the referral must list the property.

1. A completed Referral Form (Standard Franchise Corporate Folder – Referrals) must be completed and handed to the Sales Manager/Office Administrator.
2. The details are captured on the LMS Referral system after which an email is sent to the office to advise them of a new referral.
3. The either accept or decline the referral but must provide a reason if the latter. Commission splits must also be agreed.
4. Once accepted, the referring office will then start providing further information for the seller.
5. It is important that the referral is passed to the most capable agent to list or sell the referral therefore it is best to appoint the area agent.
6. Referrals must be followed up on and comments must be made on a weekly basis.
7. Once an agent is appointed for the referral, they may also make comments for the other office to be informed.
8. Referrals be responded to as a matter of urgency as they can provide an extra income for your office.

D

JOINT MANDATES
It is important to note the commission split with external agencies under NOTES on your listing on the LMS for transparency.
The terms for Joint mandates should be agreed upon with the seller as in some cases, the agency who sells the property gets all the commission where with others, a fixed agreed percentage is paid to the contract agent only. It depends on the terms agreed to.

E

CLOSED ESTATES
Agents working in closed estates are those with accreditation to work in the estate. No agent may take a client into a closed estate without prior arrangement with the dedicated estate agent.

F

CROSS-BORDER
1. This is when a sale takes place in the franchise territory directly adjacent to your franchise territory. No referral is required.
2. If the franchisee owns two licences with only one office opened, the franchise territory not bordering your agency can not be treated as a cross-border territory.
3. The commission split will always be 70/30. See latest Office Rules for details.

4. The Agent Timeline penalty will not be applicable for cross-border transactions thus the 70/30 rule will not apply.
5. The contract agency is always the agency under which the sale will be registered on Treasure Map.
6. The listing agent will be the agent who listed the property on LMS and only an active listing on LMS will ensure that an agent qualifies for commission.
7. The listing agent can be the same agent as the contract agent if the agent also listed the property in the neighbouring franchise territory.

 

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