Real estate referrals can be a win-win. A homeowner gets connected with a trusted professional in another market, and an agent gets to grow their business. But there\u2019s a fine line between making a legitimate referral and using another agent\u2019s client information to drum up business.<\/p>\n\n\n\n
That line starts with Article 16 of the REALTOR\u00ae Code of Ethics<\/strong>, which requires REALTORS\u00ae to respect the exclusive relationships other agents have with their clients.<\/p>\n\n\n\n Here\u2019s an easy example: You\u2019re showing a home listed by another agent and discover that the sellers are moving across the country. You happen to know a terrific REALTOR\u00ae in their new city. It might seem natural to reach out and offer that connection\u2014but if you learned about the sellers and their plans through the MLS or another broker\u2019s offer of cooperation, you shouldn’t use that information to target them for a referral.<\/p>\n\n\n\n In other words, the MLS is not a prospecting database for referral opportunities.<\/strong><\/p>\n\n\n\n Standard of Practice 16-3 allows REALTORS\u00ae to offer certain real estate services to clients represented by another broker when the circumstances are appropriate. However, information obtained through an MLS or similar cooperative source can’t be used to identify those clients for the purpose of making a competing service offer.<\/p>\n\n\n\n Standard of Practice 16-18 also addresses referrals. Information obtained through an MLS or another offer of cooperation generally can’t be used to refer another broker’s clients to someone else\u2014or establish a buyer or tenant relationship\u2014without authorization from the listing broker.<\/p>\n\n\n\n