Until they buy or sell...

But make it clear so they do not try to stiff you, like the AR agent tried to do to me on a $20K referral fee.

A referral is an agreement...it is not law, board specified or state required. It is whatever you offer and they accept.

If you don't like the terms...don't take the referral!

Eve

I think one year is more than adequate. But really, if someone refers me a client from out of town, I will honor my referral fee no matter when I get my commission.

12 months by default in CA and extend-able. I make mine "Until C.O.E."

Forever for a referral but only for the first transaction. We discussed this once after someone here on AR said a referral 'expired' & she didn't have to pay the referring broker. Total nonsense.

If there is a specified duration, a year should be fine.

But I agree with Nina Hollander - If someone is referred to me, and they don't purchase for years, I'd still honor that referral.

I think the answer is specific to the agreement, but in my world a referral agreed to is honored, period!

When I get paid they get paid. They were the source!

It depends on the different factors involved and what is negotiated/agreed.

Whatever is agreed to Praful.  Mine are until the transaction closes.  Why limit my right to be paid for the work I've done and time invested in a referral client?  

What does the referral agreement say regarding time line? 

There should not be a time limit.

Ditto, Nina Hollander 

Kat Palmiotti nailed this one!

Forever for the referral for me, although we typically have a 1-year expiration date.

I just Closed on a referral from an out of town agent from 3 years ago. I had to ask them to initial the date change on the referral agreement so I could pay them. They had totally forgotten about the referral!

I would say once the person referred either buys or sells.

The agreements in which I enter into endure forever or one transaction, which ever occurs first.  However, such provision is not possible in the contracts available.

It always a nice surprise to get that referral compensation 3 years after the prospect was forgotten. 

However, if the referral is from a predatory agent, no such extension is granted.

   First of all, it needs to be a referral CONTRACT that can be enforced across state lines. 

    Realtors have used the word "Agreement" as the title of their Listing Contracts, because psychologically the word "agreement" sounds better than "contract", and is less likely to trigger attorney review by said Seller.  

   To your question: 

      What is the time frame of the person being referred?  A buyer or seller would typically trigger a one-year time frame.  But an Investor, or commercial, might need a longer time frame. 

I'll accept 1 year 

Until they buy or sell.

1 year? 

For the duration of a specific transaction only.

When the parties say...

no expiration

I like to do it for at least a year. I have had some with no ending date recently sent to me. I like it to state specifically if it is for the purchase of, sale of or both.

Until they buy or sell is preferred.

Check the wording of your referral agreement.

It's usually that transaction, unless specified differently.

Whatever you negotiate or whatever makes sense or until transaction completed.

Praful,

It is always you and your conscience.  A

I do not know if this is a legal question and whether there are laws. 

All I can tell you is put a date that people have to buy by or end of referral agreement.

If I am the referring agent I would like it to be as long as possible.  Two years and it would include buying or selling this or any other home in that time period.  Five years would be better.  Receiving a referral six months only on the current transaction would be ideal.

Our California referral form is titled Referral Fee Agreement. I consider it to be a contract and it certainly is enforcable through Arbitration through the Association of the involved Realtors. 

that's a "it depends" question.  Listing?  buyer?  etc.

Unrill the first deal is done as per the referral agreement

It depends on when the buyer or seller is planning to buy or sell.

Depends on the type of referral, are they buying multiple properties like an investor, or just buying or selling one home?

Until it's finished.