Home › Guides › What happens if a referred client never closes?

What happens if a referred client never closes?

Nothing is owed. In the Realtor Referral Hub, every fee in a referral — the 25% the receiving agent pays the sending agent and the network's 5% finder's fee — exists only at a closing. If a referred client never closes, the receiving agent pays nothing, the sending agent earns nothing on that client, and the homeowner pays nothing either, because homeowners never pay a fee in this network. The standing agreement both agents signed stays in place for the next referral.

Why the fees are built this way

A referral fee is a share of a commission, and a commission only exists when a deal closes. So there is nothing to take a percentage of until closing day — no invoice for a dead deal, no charge for a client who changed their mind, and no fee for the homeowner at any point, closed or not.

What still happens on a referral that does not close

The paper stays signed. The standing agreement is signed once; a referral that does not close does not cancel it or need a new one.
The check-ins still count. The receiving agent's updates to the desk — first within one business day, then at least every 14 days and at every status change — are how the desk knows the client was worked, even when the outcome is no deal.
The next referral is unaffected. A client who never closes costs the receiving agent nothing, and the desk routes the next need in that metro the same way.

What happens if a referred client never closes?

Why the fees are built this way

What still happens on a referral that does not close

Ask the desk instead

Request your free match

More questions