Commercial Brokers Association

CBA Commercial Referral Policy and Procedures

CBA Commercial Referral Network

Policy and Procedures

Brokers seeking to locate a Commercial Broker to refer business to, should only consider CBA Platinum Members based on the markets that they serve and the property type that they specialize in.

CBA Platinum members have submitted an application along with documentation of their market knowledge and expertise to service commercial referral opportunities. These CBA Platinum Members are listed in the member’s directory.  

Completing the Referral Form

  1. Sending (referring) Broker Procedures

Confirm the referral fee.  The customary referral fee among agents is 10% to 25% based on the referring broker’s relationship with the referred commercial opportunity (client) for one side of the transaction.

Complete your portion of the referral form and send two copies to the commercial Broker.

Give a copy of the referral form to your broker of record (if necessary).

Follow-up with the customer to make sure the agent has contacted him and is satisfied with the commercial referee.

  1. Receiving (referee) Commercial Broker Procedures

Complete your portion of the referral form on each copy.  Return one copy to the sending broker and retain one copy for your records.  Be sure to include a copy of the contract pending file when a sale is consummated.

Give a copy to your Broker of Record (if necessary).

Upon receiving the completed and signed (by all parties) referral form, contact the (client) commercial opportunity.

  1. Completing the Referral Information Form

SECTION 1 – RECEIVING OFFICE/SENDING OFFICE:  This identifies the receiving/sending broker.  This portion should be completed by the sending broker.

SECTION 2 – SELLER/LANDLORD INFORMATION:  This is used when sending out a listing referral.  This portion should be completed by the sending broker.

SECTION 3 – BUYER/INVESTOR/TENANT INFORMATION:  This contains data about the investor or end-user.  It should be completed by the sending broker.

SECTION 4 – BROKER’S ACCEPTANCE OF REFERRAL:  This should be completed by the receiving broker and returned to the sending broker.

 

 

 

Referring Commercial Opportunities through the

CBA Commercial Referral Network

 

Recommended referral fees

Level 1 – Approximately 10% to Referring Broker;

      The Licensee refers a “cold lead”; i.e., the Licensee gives the name of the commercial referral with contact information to the receiving commercial broker.

Level 2 – Approximately 15%- 20% to Referring Broker;

      The Licensee knows and has a relationship with the (commercial opportunity) client and sets up the meeting between the referral and the receiving commercial broker.

      The Licensee, refers a “warm lead”; i.e., the Licensee has given a brief introduction on the referral, including contact information, and describes the commercial opportunity.

Level 3 – Approximately 25+% to Referring Broker;

      Through their relationship, there is a trust factor between the referrer and the prospective commercial opportunity (client) that helps deliver (typically without any competition) the commercial opportunity to the referee.

 

REMARKS:  Costs associated with the marketing of the above property (will / will not) be split with the referrer, it is also understood that the referrer (will / will not) assist with the marketing of this property and (Name) ________________ referrer (will / will not) be present for showings and negotiations of the sale of this property.  There may be times that either party (may / may not) assist in marketing and showing of the property.  Any future listings or sales from buyers or sellers that originate from this listing will be split per the commission referral fee below or it’s modified form at a later date and agreed upon by both parties.

 

CBA Commercial Referral Network

Policies & Procedures

 

  1. Paperwork: All referrals need to be put in writing on the referral form and signed.
    • If a referral form is not filled out the referring broker might not get paid.
    • If the referral fee % is not filled in the default value is 10%

 

  1. Selecting a Commercial Broker: The Commercial Referee will be selected by the referring Broker from the list of CBA Platinum members listed in the CBA member’s directory. This is to ensure that the referring Broker can interview any number of qualified commercial brokers to determine who has the time, market knowledge and expertise to service their commercial referral opportunity.

 

  1. Initial Contact: The CRE referral opportunity (client) will be contacted within 2 business days after receiving the signed completed referral form. The commercial referee will attempt to contact the client 3 times. After 3 times, if there are not any returned calls or responding emails, the referral will be considered inactive and no further contact will be attempted. An email will be sent to the referring broker letting them know that the referral is inactive. This will allow the referring broker to follow-up and attempt to reactivate the opportunity.

 

  1. Communication: All parties to the referral transaction should be included in the communication loop. The Referee must keep the referring broker informed of the progress of the referral and if any problems come up that could jeopardize the transaction. It is recommended that a weekly report via email or phone conversation be provided to the referring broker.

 

  1. Referral Fees: All referral fees are paid on commission less expenses.
    • Any questions regarding the referral fees should be resolved prior to signing a referral agreement.
    • 10% fee for Cold Leads – No relationship with commercial client, cold call
    • 15 – 20% fee for Warm Leads – knows commercial client, sets up meeting
    • 25% fee for Hot Leads – trust factor between referring broker & commercial client
    • Expenses may include marketing, signage, attorney, consultants, CPA, specialty consultants/inspections, etc.

 

  1. Note:
  2. There will not be any co-listing of commercial opportunities between the referring broker (residential) and the commercial referee. The only time a commercial referral opportunity can be co-listed is if the referring broker is a commercial broker and it is included in the referral agreement.