Below is the standard Referral Partner Agreement that we use.
Master Commercial Loan Referral Agreement
World Net Capital, 1 LLC
Prepared by World Net Capital 1, LLC
__________ __, 2019
Master Commercial Loan Referral Agreement
This Agreement is between _____________ hereinafter referred to as “Referral Partner” and World Net Capital 1, LLC hereinafter referred to as “WNC”. This Agreement shall act as an agreement between the parties for the referral of commercial mortgage loan applications or inquiries where Referral Partner requests assistance from WNC in placing and funding of the loan.
Referral Partner in the course of business is presented with requests for financing for commercial properties. WNC has extensive relationships with institutional investors, private investors, and lenders that provide loans, leases, and equity investments to a variety of projects on a regular basis including commercial mortgage loans for purchase, renovation, and refinance.
From time to time, Referral Partner will contact WNC for assistance in placing a commercial mortgage application with an institutional or private investor hereinafter referred to as Providers. This Agreement sets forth the relationship of the parties, how these applications will be handled, how proprietary information and data will be handled, and how the compensation for both parties will be documented.
Responsibility of Referral Partner:
Referral Partner is responsible for providing WNC with a summary of the loan request when Referral Partner is requesting an analysis of the request and placement of the application with a Provider.
While tasks may vary from transaction to transaction, generally, Referral Partner will be responsible for the following:
Provide WNC with the information on the transaction which will allow WNC to assess the viability of the request which includes but may not be limited to the items included in Addendum A to this Agreement
Obtain signed Fee Agreement from applicant documenting the discount points and origination fees that applicant and/or seller have agreed to pay
Upon approval of the viability, provide WNC with the information required to obtain a conditional loan commitment (See documentation below)
Upon receipt of a conditional commitment, have applicant(s) sign the commitment and return a signed copy to WNC
Work with the parties to the transaction to obtain the conditions for approval
When instructed, obtain from the appropriate party, the funds required for ordering third party services.
Facilitate communication between WNC, Lender and applicant
Upon clearance of closing conditions, coordinate the closing of the loan including where required, scheduling for parties required to sign
Assist with any required document corrections or changes after closing
Maintain contact with applicant and other stakeholders throughout process
Provide WNC with wiring instructions for wiring of Broker’s
Handling of Confidential Information and Data:
It is recognized that in the course of the discussions around the projects, information about the transaction, the parties to the transaction, including but not limited to existing and potential client relationships, financial data, financial projections, inventions, property information, and intellectual property may be exchanged between the parties. Each party agrees that this information, client relationships, financial data, property information, financial projections and intellectual property collectively referred to as “proprietary information” could be considered proprietary in nature and this agreement is intended to protect the rights of each of the parties in regard to this information, client relationships, financial data and projections and intellectual property. Included as confidential are the Broker and Provider relationships that the parties have with their respective Providers and Applicants. All parties are prohibited from circumventing these relationships and entering into direct agreements that are outside of this Agreement.
Whereas, WNC, and Referral Partner may have access to this proprietary information for the sole purpose described above, all parties agree to hold all disclosed confidential or proprietary information or trade secrets (“proprietary information”) in trust and confidence and agrees that it shall be used only for the contemplated purpose, and shall not be used for any other purpose nor disclosed to any third party without consent of other party.
No copies or abstracts will be made or retained of any written or electronic information supplied. Upon demand by the respective party, all information, including written notes, photographs, or memoranda shall be returned to the other party.
The disclosed information shall not be disclosed to any employee, consultant, or third party unless said party agrees to execute and be bound by the terms of this Agreement.
It is understood that the parties shall have no obligation to hold confidential with respect to any information known by the parties or generally known within the industry prior to date of this Agreement, or that shall become common knowledge within the industry thereafter as said information shall not be deemed protected under this Agreement.
Both parties acknowledge that the proprietary information disclosed herein constitutes proprietary and trade secrets and in the event of unlawful use or wrongful disclosure, the other party shall be entitled to injunctive relief as a cumulative and not necessarily successive remedy without need to post bond.
Compensation to Referral Partner and Required Documentation:
Under the terms of this Agreement, WNC agrees to split evenly with the Referral Partner, all fees received on the loans referred to WNC by the Referral Partner. The Referral Partner understands that no fees are earned unless the referral closes and funds.
On each Transaction, all parties will agree on the total compensation that will be earned. This will be agreed to and documented in a Loan Referral Fee Agreement specific to the transaction which is attached. The Fee Agreement shall include the following:
Specifics of the loan request
Total Compensation and portion paid by each party to the transaction
Any tasks that are unique to the transaction and the party responsible for the task
It is generally understood that while each referral may be unique, the Referral Partner expects to earn from .75%-1.0% on each referral that closes and funds but both Parties may agree to earn less on certain transactions such as larger loan amounts.
WNC agrees to pay to the Referral Partner, the fees agreed to within 48 business hours of receipt of the fees from the closing, Lender or borrower.
This Agreementshall terminate when one or more of the parties notifies the other parties of their intent to terminate the Agreement. Termination shall not affect transactions that are in process when the termination is received.
Any party may assign this Agreement to a related entity or an unrelated entity with the consent of the other parties which shall not be reasonably withheld.
This Agreement shall be binding upon and inure to the benefit of the parties, their successors, assigns and personal representatives.
Execution and Acceptance:
In witness whereof, the parties hereto have executed and accepted this Agreement this 4th day of October, 2018:
__________________________________ . 2019
By signing below, WNC accepts _______________ as a Referral Partner for its mortgage lending programs.